Following COP26 an emphasis on sustainability within the financial sector has increased substantially. Specifically, investors are looking to invest in sectors with a strong environmental, social, and governance (“ESG”) focus. India has 10 ESG-exclusive funds, 6 of which were introduced in FY21. This has diversified ESG investment portfolio in the country.
Environmental, Social and Governance (ESG) criteria have become increasingly important in global investment markets in recent years. Some $40 trillion, more than a quarter of total professionally managed assets, is now in funds that have overt ESG objectives.