ESG investing, once niche, has evolved into mainstream prominence, as companies demonstrate substantial commitment to continuous improvement in their performance
The OECD-UNDP Framework for SDG Aligned Finance, aiming to redirect trillions of dollars globally towards sustainable and resilient investments, especially in developing countries.
It highlights the risk of a $700 billion drop in external finance to developing nations, jeopardizing progress on poverty alleviation and sustainable development. In India, the government is actively funding projects aligned with the SDGs, focusing on health, innovation, sanitation, and water.
Private funds play a crucial role, with growing emphasis on environmental, social, and governance (ESG) factors in investment decision-making. While ESG investing is still emerging in India, the global momentum has increased, driven by the pandemic’s highlighting of responsible growth and demands for a green recovery. The note emphasizes that companies prioritizing ESG considerations tend to provide higher returns and attract more investment.
ESG investing, once niche, has become mainstream, with companies showing significant efforts to enhance their performance over time.
