The whys and wherefores of ESG Investing 

The 2020 pandemic bought about a paradigm shift in many aspects of human existence. In the world of investing, it catapulted sustainable investing to the mainstream. The names by which we know it and the reasons why we pursue it, may change over time. But this concept of directing finances towards businesses that align with our values, or boycotting those that do not, is rather old. It is now known as ESG investing, where we consider factors related to Environment, social and governance, beyond just traditional factors. These are non-financial aspects that have material impact on the financials of a company.

There have been record inflows into ESG in the last two years. And like anything that sells as hot cake, the fake claims are also on the rise, making some people call ESG, a fad.

At this juncture, we are inundated with dynamic developments in this field. These are driven by investors, consumers, employees, regulatory authorities.

In this episode, I cover the whys and the wherefores of ESG Investing.

Key topics include :

a) The history

b) Key global developments that have led to a mass mobilisation of capital towards sustainability in the last few years

c) Material ESG issues and risks

d) Key ESG disclosures and policies in India

e) Conclusion