Assets under management for ESG funds up 2.5 times in FY21: Nasscom

Assets under management for environmental, social and governance (ESG) funds increased 2.5 times to $650 million in India in financial year 2021, a top official of IT industry body Nasscom said

Assets under management for environmental, social and governance (ESG) funds increased 2.5 times to USD 650 million in India in financial year 2021 on an annual basis, a top official of IT industry body Nasscom said on Friday.

Nasscom President Debjani Ghosh, during the launch of 'Enterprise Innovation Challenge', said there has been a sharp increase in conversations around ESG.

"Companies are not just becoming alert to ESG performance of vendors or partners that they are willing to work with, but investors also are using ESG as metrics to drive investments.

"In India alone, the assets under management for ESG funds rose by 2.5 times in just a year. From 275 million USD in Fiscal Year 20, the assets under management for ESG funds went up to 650 million USD in Fiscal Year 21," Ghosh said at the virtual event.

Digital India CEO Abhishek Singh said ESG will be one of the top priorities for the industry.

He said at COP26, Prime Minister Narendra Modi has made the net-zero commitment which requires everyone to contribute, including government and the industry.

"Even in corporate governance, what we really need is that if our unicorns have to become real value-adding companies and if our startups have to go up and become the best in the world, the adoption of ethical corporate governance standards become a very important part of it.

"I am sure that the solutions coming out of the Enterprise Innovation Challenge will help not just corporations but also the government," Singh said.

He said increasing adoption of green technologies ensures conservative use of water and natural resources, and puts forward a sustainable agenda which not only takes care of present day needs but also those of the future.