ESG - An Emerging Non- Financial parameter while making Investment decisions
Gaurav Rangnekar
, Prof CA Rupali Kittur
Esg , Social Impact , ESG Funds , Performance , Investment decisions, Social Responsible Investing, Positive Impact
For a very long period of time , the investors , fund managers, analysis, institutional investors etc have been using the fundamental analysis that is Financial statement analysis , SWOT analysis , Growth , Business model , future prospects etc while making any investment decision in the company. The investors were only dependent and replied on the financial results. They were on the belief that only thing matters or is important for making any investment in the company is their “ financials”. However- beyond the number analysis , there exists a very vast ocean of parameter that an investor needs to analyse before taking any decision related to investment. This parameter is a non – numerical or non- financial parameter that also affects the value of an investment .Each and every company around the globe have to integrate themselves with the environment (E) in which they operate / function. Along with it they are functioning in the society hence they have to value its stakeholders and deliver something in return to the society (S). There are strict rules and regulations that a company need to comply in-order to operate in the country. These rules are a part of Governance , so the company needs to comply with this governance (G). Hence after integration we can say that a company needs to comply with its ESG factors in-order to perform their business operations. This study shall help the end user to understand the importance of ESG while making investments , Indian ESG Funds its analysis Investors are now shifting from the traditional investment idea of Social investing to new emerging ESG investing idea. They are realising that the company’s cant survive for a long sustainable life if they do not care about ESG Factors. There has been high dependence of investors on the ESG factors along with fundamental analysis while making investment decisions and the investors now have actually understood the importance of ESG analysis and to evaluate the company while making investment decision. The future of ESG and ESG Funds is very bright due to the growing demand and awareness of the investors related to ESG while making investment decisions.
"ESG - An Emerging Non- Financial parameter while making Investment decisions", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.6, Issue 5, page no.300 - 315, May-2021, Available :https://ijsdr.org/papers/IJSDR2105050.pdf
Volume 6
Issue 5,
May-2021
Pages : 300 - 315
Paper Reg. ID: IJSDR_193335
Published Paper Id: IJSDR2105050
Downloads: 000347178
Research Area: Management
Country: MUMBAI , MAHARASHTRA, India
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
