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When we talk about ESG funds in India, and especially about the social aspects, it is more about the companyu2019s managementu2019s relationships with people they work for, they work with or the people who work for them.
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What Does ESG Funds Mean and How Does It Work? www.avendus.com/india
What is ESG? In our day to day life, while reading the finance section of newspapers, we have all heard or ESG funds in India, some or the other time. But do we exactly know what ESG funds actually means? To put it in simple words, ESG funds are those funds, or those investments and equities that are done with the Environmental, Corporate and Social funds integrated. Any kind of investment that a big business makes, should be done keeping in mind, these factors. www.avendus.com/india
Environmental The environmental aspects include monitoring the company’s waste, pollution, energy and natural resource management and treatment of animals if using any. It talks about the ways in which the company is expanding their business but is also sensitive towards integrating the environmental factors in it. Preservation and conservation of natural resources is mandatory. For any business that uses these natural resources, needs to fund a way to do it sustainably. www.avendus.com/india
Social When we talk about ESG funds in India, and especially about the social aspects, it is more about the company’s management’s relationships with people they work for, they work with or the people who work for them. It ensures whether the company is taking care of the needs and safety of the employee’s work environment. Maintains and gives equal respect to the suppliers who work for them and give a good share of profit to betterment of the society around. www.avendus.com/india
Governance When it comes to governance, it is all about legality. It judged a company on the legal practices that they follow. Whether or not they are keeping transparency in their accounting methods, shareholders being given the opportunity to vote, how they deal in case of any conflict in interest, whether they are politically neutral or not, if all the employee’s are being treated fairly and the wages are with respect to regulation laid down by the government. www.avendus.com/india
Role of asset management company For any company to ensure that enough funds is being directed towards the above-mentioned factors, they need to have a good holding and understanding to decide what’s more important at what time. For this, they may want to hire any leading asset management companies in India that will, after a detailed study on their present condition, guide and help them in taking all the above-mentioned decisions. www.avendus.com/india
Thank You www.avendus.com/india