India ESG assets up 4.7 times in two years to Rs 12,300 crore, shows data

The size of environment, social, and governance-based fund investments in India from a global sustainability AUM perspective is currently negligible, but has been growing significantly

The assets under management (AUM) of environment, social, and governance (ESG)-based funds have risen 4.7x in two years to over Rs 12,300 crore, from Rs 2,630 crore, in November 2019.

The size of ESG investments in India from a global sustainability AUM perspective is currently negligible, but has been growing significantly. However, the Covid-19 pandemic has augmented the demand for sustainable investing, with seven of 10 ESG funds being launched since January last year, revealed experts.

The aggregate AUM in ESG funds in India as of November 30 was around 0.3 per cent of the mutual fund industry AUM, observed