Fund houses line up to take ESG route amid a spate of governance issues

The schemes primarily aim to invest in securities that favour the ESG criteria, and avoid names that go against it

The environment, social and governance (ESG) theme is catching on among mutual funds amid a spate of corporate governance issues coming to the fore and the growing focus on climate change and sustainability.

BNP Paribas has filed an offer document for its BNP Paribas India ESG Fund with the market regulator. Quantum Mutual Fund will hit the market with its Quantum India ESG Equity Fund on June 21. Last year, SBI MF had converted one of its schemes SBI Magnum Equity into an ESG fund. SBI Magnum Equity ESG Fund currently manages Rs 2,391 crore.

The schemes primarily aim to invest in