In this scenario, investors too are realizing the risks posed by factors such as climate change, poor corporate governance, and so on.
ESG investing is also known as:
• Sustainable investing
• Socially Responsible Investing (SRI)
• Impact investing and so on
ESG investing assesses the sustainability and societal impact of an investment in a company or a business.
The purpose of ESG investing is the same as traditional investing – to generate alpha or positive returns by investing in good companies.
Inflows into ESG investments: Global
Inflows into ESG funds: India
Watch this video to know more.