Page 88 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

We see this distinct shift in global capital into India—moving from public to private markets,
raising its risk appetite, and providing capital in earlier stage, and less liquid investments.
This is a material shift, with implications for newer business investments, the nature

widened and deepened India’s capital markets.

ESG investing – Here to stay

Even as India’s capital markets have become larger and opened up to the technology
space, a more pervasive and progressive shift has been the recognition of ESG as a

The ESG focus extends is progressively catching up. While ESG investing in India began with the thrust from a
beyond the capital that segment of global investors, ESG as a theme now extends across the market. The markets
goes to it directly. We led the initial shift according superior valuations to high-scoring ESG businesses, but it has
now become more pervasive.
believe it is lending a
greater sophistication The regulators have methodically increased commitments and disclosures, corporates are
to markets’ ask of aggressively moved to be more ESG-sensitive – partly a shift in business approach, but in
businesses part probably still market positioning. This has been followed by fund-raises in the domestic
market – across houses and fairly pervasive. The ESG shift shall continue to accelerate in the
markets, as businesses, investors and purpose converge.

The ESG focus extends beyond the capital that goes to it directly. We believe it is lending
a greater sophistication to markets’ ask of businesses. This is making them more conscious
of the broader responsibilities, leading to direct investments and business processes that
are geared to higher quality investing, and making it more purposeful. It’s a trend that’s

markets and businesses, its importance and need for India cannot be overstressed. With
capital increasingly carrying more responsibility, beyond returns, the qualitative impact of
capital is taking on more responsibility, and lending a greater edge.

Number of ESG schemes in India… AUM managed under ESG funds

12 ESG schemes AUM
10 140 Quant MF
10 Quntum India
112
8 Mirae Assets
84 HSBC
2018 6 ( INR bn) Invesco India
4 56 Aditya Birla Sunlife
2 Kotak
2 28
1 1 Ipru
0 0 Axis
Jun-18 | Jun-19 | Jun-20 | Jun-21 | Sep-21
2018 2019 2020 2021
Source: Company websites, AMFI, Edelweiss Research

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