BQ Big Decisions: Are ESG Funds Good For Environment And Your Investment Portfolio?
Environmental, social and governance funds are at the forefront of sustainable investing. But can they be profitable for you?
BloombergQuint’s Big Decisions podcast gets you the insights you need to make big money decisions with confidence.
ESG funds, that follow the principles of sustainable investing, are fast gaining popularity globally. They are geared towards investing in companies that grow sustainably, or in other words, those companies that meet certain environmental, social, and governance criteria.
In August this year, ESG funds globally surpassed assets under management of $1 trillion, according to data compiled by Morningstar.
There are multiple advantages associated with investment in ESG funds. The first, from the perspective of companies, is access to funds. Companies are incentivised to find environmentally sustainable ways to grow their businesses. They also see the benefits of maintaining the best corporate governance standards and keeping their workforce and stakeholders happy.
From an investor’s perspective, according to Swarup Mohanty, chief executive officer of Mirae Asset Investment Advisors, companies that are selected based on ESG criteria are likely to be more resilient and profitable in the long term.
On this BQ Big Decisions podcast, BloombergQuint spoke with Mohanty about the origins of ESG, and whether individuals can invest in these funds without having to forego better returns.
Listen in to find out...