Kotak Mahindra Asset Management Company has launched ESG Opportunities Fund, which will focus on environmental, social and governance (ESG) factors and the principles for responsible investing.

The new fund offer will open for subscription between Friday and December 4. Kotak will use Sustainalytics ESG Risk Ratings, a leading global provider of ESG research, ratings and data to support its Kotak ESG Opportunities Fund.

The Kotak ESG Opportunities Fund will invest in companies based on financial parameters and non-financial factors such as environmental, social and governance as a part of its research process to identify material risks and growth opportunities.

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To assess the ESG performance of an investee company, broadly, Kotak ESG Opportunities Fund will look at policies, practices and disclosures of each ESG pillar such as energy-efficiency measures, waste management including e-waste management, carbon and greenhouse gas emission footprint, and renewable energy use besides employee working conditions, welfare and training, and health and safety standards. It will also assess governance performance, in addition to corporate governance practices and disclosures as required under the Companies Act, 2013 and SEBI’s (LODR) 2015, whistle-blower and anti-corruption policy, no child labour policy, anti-sexual harassment policy, diversity and inclusivity policies and practices etc.

Harsha Upadhyaya, CIO, Equity & President, Kotak Mahindra AMC said globally investors are increasingly evaluating ESG performance and disclosures.

Simply put, he said performance of all three bottom-lines – profit, planet (environment) and people (social) — are equally important as against looking at only the profit bottom-lines few years ago, he said. ESG investment principles look even at ‘how companies make money’ and not just at ‘how much money the company makes’.

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