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When it comes to fund management, the owner of the business usually relies on his or her financial advisory services. The wealth manager usually provides information to the client which usually has a detailed description about the way the funds should be managed.
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Benefits of ESG to a business www.avendus.com/india
New funds When it comes to fund management, the owner of the business usually relies on his or her financial advisory services. The wealth manager usually provides information to the client which usually has a detailed description about the way the funds should be managed. One of the prime ones are the ESG funds. ESG funds are the funds that actually help the potential investors of a business or even the potential customers to get a deeper understanding about how the business is carried out. It shows the ethical practice in areas of environment, social and governance benefits. . www.avendus.com/india
A deeper insight While there might not be strict or restrictive standards and norms as to what the ESG actually constitutes of, even fund has their own set parameters for the investors to judge whether they want to invest in a company. These mostly exclude sectors such as liquor or tobacco. In the environmental aspect, we usually look at the carbon footprint of the company, how much of recycling they do, energy consumed and so on. www.avendus.com/india
Importance When you check this concept out closely, you will notice and understand that the whole idea behind the ESG funds is to hold the major corporations responsible for their actions. They have an obligation towards the society to adhere to the environmental, social and governmental norms, as they are also a major part of this system. www.avendus.com/india
Common man’s concern The reason that we, as common people, must be a little concerned about this is because firstly, it is important to note that globally, there are around $2.96 trillion invested and in those funds that have been managed and made with ESG. In India, this concept is just slowly emerging and the fund management companies are actually explaining to their clients the importance of the same in the coming years. www.avendus.com/india
What ahead? Recently, SEBI made is a mandate for the topmost thousand companies listed to make an annual business responsibility report also known as BRR in the beginning of every financial year. This report bears the details about the exclusive ethical measures that are taken by a company that is running the business. The financial thinkers believe that this would help in expanding the ESG universe in the coming years. www.avendus.com/india
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