Investing in Green Bonds and ESG
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
The Growth of Climate-conscious Investments
Sustainability has become a priority for global institutional managers. Green bonds and ESG (Environmental, Social, and Governance) mutual funds allow retail investors to align their capital with sustainability goals.
What are Green Bonds and how do they work in India?
Green Bonds are debt securities issued by corporations or governments to raise capital specifically for environmental projects, such as wind power grids or public EV fleets. They offer fixed coupon rates similar to standard corporate bonds.
ESG Mutual Fund Mandates
SEBI requires ESG mutual funds to invest at least 80% of their assets in securities of companies that publish Business Responsibility and Sustainability Reports (BRSR). This filters out firms with poor environmental compliance records.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.