ESG investing, an investing method that considers environmental, social and governance factors of a company while investing, has been picking up pace in India in recent years. "There's been a meteoric rise in ESG oriented investing in recent years. As of 2019, global sustainable investment topped $30 trillion. That's up 68 percent since 2014 and a whopping tenfold increase since 2004," says a McKinsey report.
The uncertainties witnessed in the last decade, be it economic downturn or the pandemic or the climate change, have raised awareness about being mindful. ESG is thus becoming an increasingly important priority for Indian funds and investors. Some investors have launched dedicated ESG funds or portfolios. And, companies are today forced to come up with ESG-oriented systems in their operations to effectively implement, manage, and monitor these goals.
ESG investing takes into account business practices such as diversity in the team, climate impact, among others. "Every sector is being scrutinized today by experts and concerned citizens alike. In a time when information moves quickly and without hindrances, it would be hard for any fund in India, or anywhere else for that matter, to discount the importance of ESG. While some funds may have institutionalized ESG systems better than others, the broad acceptance of ESG is now prevalent across the industry," said Reihem Roy, partner, Omnivore. Every company Omnivore invests in is subject to independent ESG diligence and regular audits.
WHAT'S DRIVING THE CHANGE
The key factor driving ESG-oriented investing is societal awareness across all stakeholders, particularly the younger segments of the population. The access to information, in all languages and across tier I, II, III and above, enabled by social media and tech in general, has made them sensitive to environmental, social, and cultural issues.
هذه القصة مأخوذة من طبعة Startups May 2023 من Entrepreneur magazine.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة Startups May 2023 من Entrepreneur magazine.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
How To Ask Family For Money
Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.
Data Breach Drama: When Trust Turns Costly In A Digital Age
Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?
THE TERRAIN TAMER
Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.
THE INTELLIGENT READS
Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.
THE CURSE OF GROWING TOO FAST
FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"
Give Yourself the Gift of Time
Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
