What you opinion will ESG (Economical, Social and Governance) will Impact on Indian stock market in future ?
ESG is Environmental Social & governance. The idea behind ESG is sustainability and ethics along with the impact it creates. Some AIF’s have an ESG portfolio already. ESG is not as big in India as it is globally as investors in Europe & US have been well aware of them since the 90’s. There’s an index for ESG called NIFTY 100 ESG.The main problem around ESG is the reporting of data as it is not easily available. From tracking carbon emissions to social impact that the firm has is difficult to quantify.
The United nations has come out with Principles for Responsible Investment which talks about incorporating ESG principles while making Investment decisions.