ON MARCH 26, 2024, BlackRock CEO Larry Fink caused quite a stir. His annual chairman’s letter to investors was in the news for what it did not have. Conspicuous by its absence was the mention of the term ESG (environment, social, and governance).
But for those who had followed the $10-trillion asset manager, perhaps this came as no surprise. In June 2023, Fink had said, “I’m not going to use the word ESG because it’s been misused by the far left and the far right.”
ESG has been the subject of an intense debate, with some terming it ‘woke capitalism’, especially in the US. As a result, investors pulled out $13 billion from sustainable funds in the US in 2023. Asian markets, too, saw mild outflows in 2023. One of the biggest exceptions is Europe, which continues to lead in sustainable investment, attracting $10.9 billion in sustainable funds in the January-March quarter of 2024.
India was a latecomer to the ESG party, but there has been a significant increase in investments in such funds over the past seven years. The assets under management (AUM) of active ESG mutual funds grew significantly from under ₹3,000 crore in December 2019, when there were just two schemes, to ₹12,000 crore in December 2021, when there were eight schemes. But since then, the AUM has broadly remained flat—in the ₹10,000–11,000 crore range—and there have been no new fund offers (NFOs).
The question now is whether Indian investors, who haven’t been very enthusiastic about sustainable investments, will be influenced by the global volatility in the ESG space.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS