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People are now becoming more and more aware of the environment and its effect on planet and people. The investors- individual investors as well as institutional investors- are now interested in investing in those companies which are ethical and have societal concerns. These investors aim at having not only financial returns but also ensure that the companies they are investing in are conscious of the impact they are making on the society and its environment because of its business activities. They are of the view that such an investment focus would make a favourable impact on the environmental issues around the world. They consider some Environmental, Social and Governance (ESG) factors in addition to monetary returns to decide where to invest their money. Thus, they will choose those companies for investment that reduce environmental damage. Socially responsible investors do not want that the returns they are getting are result of those unethical and irresponsible business practices followed by companies that do not acknowledge ESG factors. These investors include ESG information in taking decisions about investment so as to ensure that all relevant factors are accounted for when assessing risk and return. In India, few companies have taken initiatives to reduce carbon footprint by investing in green technologies. Bombay stock exchange (BSE) and National Stock Exchange (NSE) have launched a number of thematic indices which include companies that meet ESG norms. Mutual funds have also launched few exchange traded funds (ETFs) based on socially responsible investment theme. My research paper tries to study and analyse the various aspects related with ESG-linked investments in India. Objective of the Study: The paper aims to explain the various aspects related with socially responsible investment and its role in India with specific focus on ESG –linked investment scenario in India
Keywords:
Socially Responsible Investing (SRI), Environmental, social and corporate governance (ESG) factors, India, Paris Agreement, National Stock Exchange (NSE), Bombay stock exchange (BSE), ESG Mutual Funds, Objectives of SRI
Cite Article:
"A Study of Essence of Socially Responsible Investment and Environmental, Social and Governance (ESG)-linked Investment Market in India", International Journal of Science & Engineering Development Research (www.ijrti.org), ISSN:2455-2631, Vol.3, Issue 8, page no.215 - 219, August-2018, Available :http://www.ijrti.org/papers/IJRTI1808037.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator