Morningstar India, a global leader in investing research on funds, equities, and general market data, has teamed up with Sharekhan to provide ESG (environment, social, and governance) ratings for firms covered by the latter. According to Sharekhan, the grade will help investors understand how their portfolio firms manage their environmental, social, and governance – or ESG – risks in comparison to their peers.
More and more investors are now considering ESG issues to help manage investment risks. The theme was initially driven by institutional investors but is gaining traction among retail investors, too. This ranking was created to allow advisers and investors to easily compare firms across industries. Its design has been updated to make it easier to use as they make financial selections.
Speaking on this development, Jaideep Arora, CEO, Sharekhan by BNP Paribas, said, “As a full-service broker, we have always believed in providing extensive research to help customers make well-informed decisions, and we are very proud to incorporate ESG ratings in our research going forward. We strongly believe it will assist customers looking to invest in companies that are thinking of the future. Environment, Social, and Governance are an integral part of BNP Paribas’s approach and strategy globally.”
According to the latest report by Morningstar India, Indian funds based on environmental, social, and governance (ESG) investing philosophy garnered a mere ₹26 crore during the June quarter as incremental flows into existing funds remained muted.