Kotak Mahindra Asset Management Company Limited, the asset manager of Kotak Mahindra Mutual Fund has launched the ‘Kotak ESG Opportunities Funds’ on Thursday, 19 November 2020. The new initiative will focus on factors such as Environmental, Social, and Governance (ESG) and the Principles for Responsible Investing (PRI). The subscription for New Fund Offering (NFO) opened on 20 November 2020 and closes on 4 December 2020.
KMAMC, the first asset management company to sign the United Nations Principles for Responsible Investment (UNPRI) give on to the charge for responsible investment in India. They are looking for delivering optimum returns for their investors on a sustainable basis. Kotak ESG Opportunities Fund will invest in various companies based on their financial and non-financial parameters such as Environmental, Social, and Governance. This is done to identify material risks and growth opportunities concerning various companies. Global investors are increasingly evaluating Environmental, Social, and Governance (ESG) aspects related to a business.
Kotak ESG Opportunities Funds will verify the policies, practices, and disclosure of the investee company to access its ESG performances. For evaluating environmental performances they will look for energy efficiency measures, waste management which includes e-waste management, carbon and Green House Gas emission footprint, and renewable energy usage. Various factors such as employee working conditions, welfare, and training, health, and safety standards will be measured for assessing social performance.
In the case of governance performance of both corporate governance practices and disclosures are required under the Companies Act 2013 along with this whistleblower and anti-corruption policy, no child labour policy, anti-sexual harassment policy, diversify and inclusivity policies and practices will also be considered.
Harsha Upadhyaya CIO- Equity President of Kotak Mahindra Asset Management Company Limited imparts the information related to the importance of Profit, Planet which relates to environment and People which relates to social factor, rather than focussing only on profit. Kotak ESG Opportunities Fund focuses on investing to create sustainable wealth for its investors.
Kotak Mahindra Asset Management Company Limited, the subsidiary of Kotak Mahindra Bank Limited (Kotak) started their operations in December 1998 for managing the assets of Kotak Mahindra Mutual Funds (KMF).