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Showing posts from January, 2023

Why ESG performance is growing in importance for investors?

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 ESG (Environmental, Social, and Governance) performance is growing in importance for investors for several reasons: Increased awareness and demand: There is growing awareness and demand among investors for investments that align with their personal values and beliefs, as well as concern about the environmental and social impact of investments. Improved risk management: ESG in India analysis helps investors identify potential risks and challenges faced by companies, such as regulatory changes or reputation damage, and assess their impact on investment performance. Better alignment with personal values: ESG investing enables individuals to align their investments with their personal values and beliefs, leading to a more fulfilling investment experience. Potential for higher returns: Studies have shown that portfolios that consider ESG factors can potentially deliver higher returns and lower volatility compared to those that don't. Growing body of research: There is a growing body o...

What Is Environmental, Social, and Governance (ESG)

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Environmental, Social, and Governance (ESG)  is a framework used to evaluate the sustainability and societal impact of a company or organization. It is a comprehensive evaluation of a company's overall sustainability and impact on the environment, society, and governance. Environmental factors include a company's impact on the natural environment, such as its carbon emissions, energy consumption, and water usage. Social factors include a company's impact on society, such as its labor practices, human rights record, and community engagement. Governance factors include a company's internal governance structure, such as its board composition, executive compensation, and transparency. ESG analysis is used by investors, companies, and other stakeholders to evaluate the overall sustainability of a company and to identify potential risks and opportunities. It can also be used to identify companies that are leading the way in sustainable practices and to identify areas where co...

What is nbfc and how it works?

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 A Non-Banking Financial Company (NBFC) is a financial institution that provides banking services but does not have a banking license. Unlike banks, NBFCs are not a part of the central banking system and do not have the authority to accept demand deposits. They are regulated by the Reserve Bank of India (RBI). NBFCs provide various financial services such as loans, asset management, and insurance. They can also issue credit cards, and accept deposits. They are required to register with the RBI and comply with regulations regarding capital adequacy, loan-to-value ratios, and other prudential norms. NBFCs raise funds from various sources such as issuing debt securities, accepting deposits and borrowing from other financial institutions. They use these funds to provide loans and other financial services to individuals and businesses. In summary, an NBFC is a type of financial institution that provides banking services without having a banking license and is regulated by the Reserve Ba...

What are environmental, social and governance ESG factors?

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Environmental, social, and governance (ESG) factors are a set of criteria used to evaluate the sustainability and societal impact of companies and organizations. Environmental factors refer to a company's impact on the natural environment, such as its carbon footprint and environmental policies. Social factors refer to a company's impact on society, such as its labor practices and human rights record. Governance factors refer to a company's leadership, executive pay, and transparency.  ESG sustainability factors are increasingly being used by investors and other stakeholders to evaluate the long-term sustainability of companies and organizations. What are the 3 pillars of ESG? The three pillars of Environmental, Social, and Governance (ESG) are: Environmental: This pillar looks at a company's impact on the environment. This includes factors such as carbon emissions, energy consumption, waste management, and environmental policies.   Social: This pillar looks at a com...