CURRENT AFFAIRS

Detailed explanation-1: -Assets under management for environmental, social and governance (ESG) funds increased 2.5 times to USD 650 million in India in financial year 2021 on an annual basis, a top official of IT industry body Nasscom said on Friday.

Detailed explanation-2: -In our base case scenario, the share of ESG assets over total AuM would increase from 14.4% in 2021 to 21.5% in 2026, comprising more than one-fifth of all assets (see ‘Growth in ESG investments will outpace the industry as a whole’).

Detailed explanation-3: -ESG Theme Outlook in India. According to a research report, ESG theme mutual fund assets grew 4.7 times between November 2019 and November 2021. As of November 2021, the total AUM was INR 12,320 crore across ten funds.

Detailed explanation-4: -The report identified $8.4 trillion in U.S. investment assets at the beginning of 2022 held by firms that factor environmental, social and governance into their decisions. That was a steep drop from the last assessment in 2020, which recorded $17.1 trillion in ESG assets under management.

Detailed explanation-5: -Alternative Investment Funds: In 2022, the US SIF Foundation identified 383 alternative investment vehicles, including private equity and venture capital funds, hedge funds, and real estate investment trusts (REITs) or other property funds, managing $762 billion in AUM that considered ESG criteria.