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Green investments | What is the buzz around ESG funds?

As per a recent MSCI 2021 Global Institutional Investor survey, around 79 percent of investors in Asia significantly increased their investments in ESG funds, allocating over $5 billion to them in the last leg of 2020.

June 29, 2021 / 07:52 PM IST

The COVID-19 pandemic has indeed amplified the demand for ESG (Environmental, Social and Governance) investing across the globe, with the younger generation of investors becoming more vocal and interested in what’s affecting the world, and considering corporate contributions to society as a parameter for investment decisions. 

As per a recent MSCI 2021 Global Institutional Investor survey, around 79 percent of investors in Asia significantly increased their investments in such funds, allocating over $5 billion to them in the last leg of 2020. This marks the region’s total at $25.4 billion, an almost 131 percent rise from 2019.

In fact, ESG assets have grown at about 22 percent per annum since their inception in 2006 with the formation of the PRI (Principles of Responsible Investing) network. And with Indian business giants like Reliance, Adani, and Tata pledging to go green, the momentum for ESG investing is indeed high at the moment.

What are ESG Funds?