Kotak Mahindra Asset Management Company announced the launch of ‘Kotak ESG Opportunities Fund’, which will focus on Environmental, Social and Governance (ESG) factors and the Principles for Responsible Investing (PRI). The new fund offering (NFO) opens for subscription on November 20 and closes on December 4.
The asset manager will use Sustainalytics ESG Risk Ratings – a leading global provider of ESG research, ratings and data - to support its Kotak ESG Opportunities Fund.
To assess ESG performance of an investee company, Kotak ESG Opportunities Fund will broadly look at policies, practices and disclosures of each ESG pillar. For environmental performance, it will look at energy efficiency measures, waste management including e-waste management, carbon & greenhouse gas emission footprint, and renewable energy use. For social performance it will be employee working conditions, welfare & training, and health & safety standards.
For assessing governance performance, in addition to corporate governance practices and disclosures as required under the Companies Act, 2013 and SEBI’s (LODR) 2015, it will be whistle-blower and anti-corruption policy, no child labour policy, anti-sexual harassment policy, diversity and inclusivity policies and practices.
Harsha Upadhyaya, CIO–Equity & President, Kotak Mahindra Asset Management Company said, “ESG investment principles look even at ‘how companies make money’ and not just at ‘how much money the company makes’. Kotak ESG Opportunities Fund will focus on the ESG principles and disclosures of the investee company with the flexibility of investing across market capitalisation range with the aim to create sustainable wealth for our investors."