ESG Becomes a Significant Factor for Investment

The consideration of environmental, social, and governance (ESG) is becoming increasingly relevant in the investment process. This was emphasised on the inaugural day of the third edition of the Research Symposium on Finance and Economics (RSFE) 2022, organised by the IFMR Graduate School of Business at Krea University on Thursday.

Itay Goldstein, Joel S. Ehrenkranz Family Professor of Finance and Professor of Economics, Wharton School, University of Pennsylvania, U.S., said:

"Investors are increasingly showing interest in other aspects of a firm’s operation, namely ESG. This is a revolution for the way asset markets work since there are investors who are potentially interested in different things – cash flow vs ESG."

He noted that as a result, the number of green investors has increased, and non-monetary data has improved.

Lakshmi Kumar, Dean, IFMR GSB, Krea University, said:

" Today, ESG is an imperative parameter in an organisation’s strategy. With our lives being invaded by non-biodegradable products, the biggest challenge is getting corporates to respond to this critical issue. I believe an economic deterrent coupled with shareholder activism could influence corporates to navigate a socially responsible path and build resilience into their infrastructure."

At the two-day symposium, more than 50 researchers from India and abroad will present their work in finance and economics. The symposium's goal is to provide a forum for discussion and debate on hot topics in finance and economics, Praveen Bhagawan, Chair, RSFE 2022, said.

Source: The Hindu

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