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Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

India’s ESG Emphasis to benefit Compliant Companies? - ABSLMF Blog

India’s ESG emphasis to benefit compliant companies?

Nov 27, 2020
2 mins | Views 17845

We live in a complex interconnected world. If anything, Covid-19 has shown us how co-dependent we are as global citizens and economies. This has necessitated an increasing focus on Environmental, Social and Governance (ESG) parameters in the manner Governments form policies, companies operate, and financial institutions invest. The need for ESG has further amplified in the backdrop of this pandemic. As a nation it is imperative for us to be vigilant of the risks emanating from challenges of this nature. In the recent few months certain indicators have emphasised how companies that are ESG compliant are pre-disposed to benefit hugely from this shift in mindset.

A report released recently by global thinktanks, including TERI (The Energy and Resources Institute) says that India was the only “2°C compatible” country and the only G20 nation which is on track to meet what it had promised under the Paris Agreement (The Paris Agreement’s central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius). Aligned to these efforts, in the recently held Virtual Global Investor Roundtable (VGIR) 2020 by the Prime Minister, which was attended by heads of 20 top institutional investors from across the world, there was a strong and clear message from the Government of India on its commitment towards ESG. In this forum attended by some of the world’s largest institutional investors, the Prime Minister stressed on India’s focus on ESG and how it follow the path of growth with equal focus on the Environmental, Social and Governance parameters. This in a way sets a future roadmap for India Inc. to incorporate ESG in an increasingly active way. For those companies that are already compliant and command high ESG scores stand to gain further, as well as see increasing investor interest. Probable incremental policies and incentives from the Government will only further propel these companies and sectors.

“Aim to invest in Aditya Birla Sun Life ESG Fund

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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