Sherif Kottapurath’s Post

"@Sherif Kottapurath - Your comprehensive breakdown of ESG investing's evolution resonates strongly with what we're seeing in the retail sector. The PwC data point about 90% of asset managers believing in ESG integration is particularly telling - it's no longer just about ethical choices, but about sustainable business fundamentals. Having worked with Ethical Investment companies, I particularly appreciate your insight about supporting companies that aren't yet ESG compliant. This transformational approach is crucial - it's not just about divesting from laggards but about catalyzing positive change across industries. The emphasis on both financial viability and ethical considerations mirrors what successful retail brands are discovering: sustainability and profitability aren't mutually exclusive, they're increasingly interdependent. Looking forward to following your company's continued leadership in ethical investment practices. Your approach to combining purpose with performance sets a valuable example for the industry. 💯"

Responsible and ethical investing has evolved significantly over time. Here’s a brief overview: 1. **Early Beginnings (Pre-20th Century)**: Ethical investing can be traced back to religious and philosophical traditions, such as Quaker investments, which avoided businesses related to slavery or alcohol. 2. **1900s – 1950s**: The modern movement began to take shape. In the 1960s, social movements and increased awareness of corporate practices led to the emergence of socially responsible investing (SRI). 3. **1960s – 1980s**: SRI grew with activists advocating for divestment from industries such as tobacco and apartheid-related investments. The focus was on avoiding "bad" investments. 4. **1990s – 2000s**: The concept expanded to include positive screening, where investors sought out companies with strong environmental, social, and governance (ESG) practices. The establishment of frameworks like the UN Principles for Responsible Investment (PRI) in 2006 formalized these practices. 5. **2010s – Present**: Responsible investing has become mainstream. ESG criteria are now integral to investment decisions, and sustainable finance practices are more prevalent. The focus is on both avoiding harm and generating positive social and environmental impact. Overall, responsible and ethical investing has shifted from avoiding negative impacts to actively seeking out investments that contribute positively to society and the environment. @sustainability @fostering sustainability Magazine

Are you looking to make your money work for good? Ethical investing is the way to go!🚀 ✳️Investing ethically means putting your money into companies that share your values, like promoting sustainability, fair wages, or diversity. It's a win-win: you make money while supporting causes close to your heart.💚 Ethical investing involves investing your money into companies or funds that prioritize environmental, social, and governance (ESG) factors. These factors can include: ✅Environmental Impact: Investing in companies that are committed to sustainability, renewable energy, and reducing their carbon footprint. ✅Social Responsibility: Supporting companies with fair labor practices, diversity and inclusion initiatives, and positive community engagement. ✅Governance Practices: Backing companies with strong corporate governance, transparency, and ethical leadership. Why Choose Ethical Investing? ✳️Alignment with Values: Ethical investing allows you to support causes and values that are important to you, whether it's protecting the environment, promoting social justice, or fostering ethical business practices. ✳️Long-Term Sustainability: Companies that prioritize ESG factors tend to be more resilient, better at managing risks, and positioned for long-term growth in a rapidly changing world. ✳️Positive Impact: By investing in companies that make a positive impact, you can contribute to addressing global challenges such as climate change, inequality, and ethical business practices.🌿 ✳️Financial Returns: Contrary to a common misconception, ethical investing can be financially rewarding. Many sustainable funds and companies have demonstrated competitive returns while making a positive impact.💰 How to Get Started: 📌Identify what matters most to you—sustainability, social impact, ethical governance, etc. 📌Explore companies, mutual funds, or ETFs with strong ESG practices and performance. 📌Spread your investments across different sectors and asset classes. 📌Stay informed, monitor your investments, and engage with companies on ESG issues. 🍃Ethical investing is not just a trend; it's a fundamental shift in the way we think about finance, value creation, and societal impact. As investors, we have the power to shape a sustainable future by channeling capital towards businesses that prioritize environmental sustainability, social responsibility, and ethical governance.🌟 Connect with me (Ankitha Prabhu H N ) for more Financial Insights 😊 Do like, share your thoughts and repost if you found this valuable 🌟

What is “Ethical” investing? Ethical investing is an investment strategy where individuals and institutions choose investments based on ethical, social, and governance (ESG) criteria in addition to financial return. This approach often focuses on: 1. Environmental Impact: Investing in companies with sustainable practices, renewable energy initiatives, and low carbon footprints. 2. Social Responsibility: Supporting businesses that promote human rights, labor rights, and positive community engagement. 3. Corporate Governance: Favoring companies with transparent, accountable management practices, fair executive compensation, and diverse boards. Importance of Ethical Investing: 1. Alignment with Values: Ethical investing allows investors to align their portfolios with their personal values and beliefs, promoting a sense of integrity and purpose. 2. Positive Impact: By directing capital to companies that prioritize ESG factors, ethical investors can support and accelerate positive social and environmental changes. 3. Risk Management: Companies with strong ESG practices often demonstrate better risk management, potentially leading to more stable, long-term returns and reduced exposure to scandals and fines. 4. Market Influence: Ethical investing can influence corporate behavior. As demand for responsible investments grows, more companies may adopt sustainable and ethical practices to attract investors. 5. Consumer Awareness: Increased ethical investment promotes awareness and accountability, encouraging companies to improve their practices due to investor and consumer pressure. 6. Long-term Viability: Ethical investing supports the development of a more sustainable and resilient economy, fostering long-term viability for both the planet and the markets. By prioritizing ethical considerations, investors can contribute to a more sustainable, equitable, and just world while potentially achieving favorable financial returns.

Shape a sustainable future with your portfolio: Key strategies for ethical investing success: Prioritize companies with strong environmental policies, aiming for sustainability and reduced carbon footprints. Invest in businesses actively reducing waste and improving recycling processes. Support companies with clear commitments to renewable energy and energy efficiency. Look for organizations with water conservation policies and practices. Avoid investing in companies involved in deforestation or harmful environmental practices. Favor companies with ethical labor practices, including fair wages and safe working conditions. Invest in businesses promoting diversity and inclusion in their workforce. Support companies with strong community engagement and positive social impact. Avoid companies with histories of human rights abuses or exploitative practices. Look for firms with transparent and ethical supply chains. Prioritize companies with strong governance structures and ethical leadership. Invest in businesses that actively combat corruption and bribery. Support companies with clear, transparent financial practices and reporting. Look for firms with shareholder rights and responsible executive compensation policies. Avoid companies with poor governance records or controversies. Diversify your ESG investments across different sectors to spread risk. Use ESG ratings and reports from reputable sources to inform your decisions. Consider impact investing in companies or projects with direct positive social or environmental impact. Keep updated with ESG trends and regulatory changes. Engage in shareholder activism to encourage better ESG practices in your investments. Invest in green bonds or ESG-focused funds for a diversified approach. Consider the long-term sustainability of business models in your investment choices. Use proxy voting to influence corporate ESG policies positively. Monitor your investments regularly to ensure they continue to meet ESG criteria. Educate yourself continually on ESG principles and best practices to refine your investment strategy.

Powering Positive Global Change Ethical investing is more than a trend; it’s a powerful tool for creating a positive global impact. By choosing investments that align with our values and promote sustainability, we can drive change on a global scale. Ethical investing is about making sure our money works for the greater good, not just for personal gain. The principles of ethical investing: Environmental, Social, and Governance (ESG) Criteria: Evaluate potential investments based on their environmental impact, social responsibility, and governance practices. Positive Screening: Actively seek out companies and funds that demonstrate strong ethical practices and positive contributions to society. Avoidance of Harmful Industries: Exclude investments in industries that harm society or the environment, such as fossil fuels, tobacco, and weapons manufacturing. Practical steps to start or enhance your ethical investment portfolio: Research Ethical Funds: Look for mutual funds and ETFs that focus on ESG criteria. Consult Financial Advisors: Seek advice from professionals who specialize in ethical investing. Diversify Your Investments: Ensure a mix of assets that align with your ethical standards and risk tolerance. Monitor and Adjust: Regularly review the performance and impact of your investments and make adjustments as needed. Let’s lead by example in the realm of ethical investing. Share your journey and the impact you’ve seen through responsible investment choices. We really want to hear about it.

Ethical Investing (SRI) ✅ 💯 🌍 Ethical investing also known as socially responsible investing (SRI) refers to the practice of using investor’s ethical principals as the primary filter for the selection of investment securities. Investor considers broader social, environmental, and ethical impacts on the investments and aims to align financial goals with these objectives. It has the potential to generate financial returns while driving positive change in the world. As awareness of ESG issues continues to grow and investors seek to align their strategies with broader societal objectives, ethical investing is likely to play and increasingly prominent role in the global financial markets. https://lnkd.in/gnXGJE9J

Ethical Investing in the Indian Stock Market 📈🇮🇳 Ethical investing, also known as socially responsible investing (SRI) or environmental, social, and governance (ESG) investing, is gaining traction in the Indian stock market. Here’s a snapshot of ethical investing trends in India and their significance. 🌍💚 1. Rise of ESG Investments 📊🌿 Environmental, Social, and Governance (ESG) criteria are becoming central to investment decisions in India. Investors are seeking companies that prioritize sustainability, social responsibility, and good governance practices. According to the 2024 Morningstar ESG Investment Report, ESG-focused funds in India have seen a substantial increase, with assets under management (AUM) growing by over 30% to ₹1.5 trillion in the past year. In 2023, the Nifty 100 ESG Index, launched by NSE Indices, gained significant attention, reflecting the growing interest in ESG-compliant investments. 2. Corporate Social Responsibility (CSR) 💼🤝 In India, CSR has become a key aspect of corporate ethics. The Companies Act, 2013 mandates that companies meeting certain criteria allocate at least 2% of their net profit towards CSR activities. In the financial year 2023-24, Indian companies spent over ₹20,000 crore on CSR initiatives. Notable areas of investment include education, healthcare, and environmental sustainability. 3. Green Bonds and Sustainable Finance 🌱💵 Green Bonds are another growing segment in ethical investing. These bonds are issued to fund projects that have positive environmental impacts, such as renewable energy and pollution control. The Indian green bond market has seen substantial growth, with issuances reaching ₹10,000 crore in 2023, a significant increase from previous years. The Sustainable Finance Framework introduced by the Reserve Bank of India (RBI) in 2023 aims to promote green and sustainable financial practices among banks and financial institutions. 4. Ethical Investment Funds 📈📑 Several mutual funds and investment portfolios in India are now specifically designed to cater to ethical investors. The SBI Magnum Equity ESG Fund and the Aditya Birla Sun Life ESG Fund are examples of funds that integrate ESG criteria into their investment strategies. The popularity of these funds has been on the rise, with combined AUM crossing ₹50,000 crore in 2023. Investors are increasingly drawn to these funds due to their dual promise of financial returns and alignment with ethical values. Conclusion 🌟 Ethical investing is reshaping the Indian stock market, driven by growing awareness of environmental and social issues among investors. With increasing assets in ESG-focused funds, robust CSR spending, and the rise of green bonds, ethical investing is becoming a mainstream approach in India. As the market continues to evolve, the emphasis on ethical practices not only reflects investor values but also contributes to a more sustainable and responsible financial ecosystem. 🌐💚

Corporate Sustainability Commitments: Over 80% of companies intend to increase their investment in environmental sustainability projects within the next year, indicating a growing prioritization of ESG goals at the executive level, particularly in renewable energy, ethical sourcing, and sustainable packaging. But to hell with ethics. Progress is more important. All energy production is essential to meet the demand. Ethics, morality, regulation, and religion hold up progress. We must move forward. Free markets, free consumers, free information flow, free people! Ethical Sourcing Yields ROI: As sourcing becomes a critical consumer expectation to meet supply and demand, brands focusing on worldwide consumer demand in their supply chain are poised to build more robust markets unregulated. A Growing Market: As companies gear up to respond to increasing consumer demand, more suppliers of materials and packaging, as well as service providers, are helping them. The global retail market is projected to grow at a rate of 9.1% from 2024 to 2029. AI Enhances Reporting: The integration of AI risk management is expanding, focusing on improving the accuracy and efficiency of good worldwide supply chain. Sustainable Fibers Adoption Lags: Despite the availability of sustainable alternatives to traditional fibers, the textile industry’s adoption rate is slow, signaling an opportunity for innovation and market leadership. What is holding it up is global fragmentation. Regulatory Landscape Tightens: Regulations increased by 155% over the past decade and are set to continue that pace in 2024, which sees the introduction of new sustainability disclosure requirements in the UK and a European Union crackdown on These markets must be avoided, as punishment to their over-regulation, bought on by nationalism, religion, morals and ethics that slows down global economic growth

Creating a green initiative presents several ethical challenges, particularly when it involves resupplying resources, dismantling traditional systems, and integrating new and existing technologies. Here are some key ethical considerations: 1. **Disruption of Established Systems**: Transitioning to greener technologies often requires significant changes to existing industries, potentially displacing workers and communities. Ethical considerations must include how to support those impacted by the transition, such as providing retraining programs and alternative employment opportunities. 2. **Resource Allocation**: Green initiatives often demand substantial financial and natural resources to develop and scale new technologies. The ethical challenge lies in ensuring that these resources are distributed fairly, especially in regions with limited access. Developing countries may struggle to keep pace, raising concerns about global inequality. 3. **Time and Technological Integration**: The time required for new technologies to emerge and integrate with existing ones can lead to delays in achieving environmental goals. In the meantime, unsustainable practices may continue, worsening environmental damage. Ethically, it is necessary to balance immediate action with long-term technological innovation, which can be a difficult challenge. 4. **Conservation vs. Economic Growth**: There is often a conflict between conservation goals and economic growth. Green initiatives may slow down certain industries or limit the exploitation of natural resources, which can clash with the economic priorities of some communities or countries. Ethical considerations must focus on creating growth that aligns with sustainability. 5. **Inclusivity and Fair Representation**: Ensuring that diverse voices and communities, especially those most affected by environmental degradation (such as indigenous peoples), are included in decision-making processes is an ethical imperative. Often, those most impacted by environmental issues are excluded from conversations about solutions. 6. **Equitable Access to New Technologies**: As new green technologies emerge, it is important to ensure equitable access to them. If green technologies are affordable only to certain groups or regions, it could exacerbate inequality. Balancing innovation with inclusivity is essential for widespread adoption. In summary, the ethical challenges of green initiatives revolve around managing their economic, social, and environmental impacts in a way that is just, inclusive, and sustainable.