ESG investing gathers steam worldwide amid Covid-19 pandemic: Experts

India, too, witnessed traction in ESG-related decision-making and product offerings, such as ESG-focused mutual funds, EY said.

Investors worldwide have been re-evaluating their portfolios based on environmental, social, and governance (ESG) parameters in the aftermath of the pandemic, with institutional players, wealth management clients, and millennials driving the change, a research note put out by EY India observed.

The consultancy said ESG factors were pivotal in driving the economy in the Covid era, and firms needed to integrate ESG investor expectations in the short-term as part of their stakeholder engagement practices and sustainability initiatives to stay more resilient.

“The Covid-19 pandemic has ascertained the importance of ESG in the businesses to manage risks, improve returns, and build