ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential ESG Fund. The scheme will invest in companies which follow Environmental, Social and Governance (ESG) theme. According to the press release, companies will be assigned a composite ESG score based on the factors mentioned and exposure will be taken in companies by assessing them on the mentioned factors.
The New Fund Offer (NFO) opens on September 21 and closes on October 05. The Scheme will be managed by Mrinal Singh, Deputy CIO- Equities and the benchmark is Nifty 100 ESG Index TRI.
“ESG investing is synonymous with sustainable investing. In the coming years, ESG way of investing will be a new normal in India as most of the millennial & young population in India are more conscious and diligent while making an investment decision. Majority of studies highlights that companies with good ESG scores tick-off most of the check-boxes for investing, tends to mitigate Environmental & Social risks and tends to have stronger cash flows, lower borrowing costs and durable returns,” Nimesh Shah, MD & CEO, ICICI Prudential AMC, said.
The fund house believes that in India, the ESG concept is at a nascent stage and has huge scope to explore. Whereas globally, responsible investing i.e. ESG-based investing has been present for a while, with investor happily accepting this concept as showcased through the flows received in 2019 .