ESG: What Project Developers Must Know

Introduction

The concept of Environmental, Social and Governance (ESG) had been gaining prominence among the investors and companies over the years, however, the advent of the pandemic has highlighted the growing importance of ESG considerations for the global financial ecosystem. ESG refers to the three key elements (environmental, social and governance) that define how morally responsible a business or investment will be. The ESG debt market is estimated to be worth around $15 trillion by 2025¹. Witnessing this trend, a number of ESG-themed mutual funds along with Nifty 100 ESG index have been introduced over past few years which have been constantly outperforming their traditional peers.²