Context:

The changing focus towards climate change and sustainability is going to alter our investment decisions too. Owing to this, the concept of ESG Funds is becoming popular in India.

About:

• ESG is a combination of three words – Environment, Social and Governance
• It is a mutual fund.
• It focuses on sustainable investing or socially responsible investing.
• The ESG fund invests in companies with environment-friendly practices, ethical business practices, and an employee-friendly record while other funds don’t.
• The fund is regulated by the Securities and Exchange Board of India (SEBI).
• Last year, SBI Mutual Fund renamed SBI Magnum Equity Fund to SBI Magnum Equity ESG Fund and launched the first ESG mutual fund in India.