September 8

COVID Disruption: ESG Investment Catches on Fast & Is Here To Stay

By Souvik Ganguly

Environmental, social and governance (ESG) focused investments have outperformed companies with lower ESG risk profiles and emerged as a trump card for investors in the wake of the Covid-19 pandemic outbreak. The trend has been noticeably visible also in India with ESG stocks generating comparatively higher returns compared with other stocks in Q1, 2020.

Though ESG investments have not become a dominant theme in Indian markets as compared to the markets in the US and Europe, investor pressure could result in the rollout of not only governance oriented but also environmentally focused and socially viable investment practices.

Photo courtesy of Bill Oxford.

Source: Economic Times (link opens in a new window)

Coronavirus, Investing
ESG, governance, impact investing