Trends in the ESG landscape

Environmental, Social and Governance investing or ESG investing refers to investing based on evaluation of companies under the 3 parameters and not just business and financials. It focusses on whether companies are conducting their business in a sustainable way that is good for the long term health of our planet.  In its outlook for 2021, one of the world’s largest money managers , Blackrock, had outlined that sustainability would be its new standard of investing and within that climate change will be the most significant factor addressed. This is just one example of large institutional investors with clout giving thrust to the ESG theme.  ESG investing has potential to gain good traction in the current decade, although it may not follow a linear path. Here is a peek into how this theme has played out in recent years.