Sustainable Investments by Private Equity/ Venture Capital Firms in India

Sustainable investment, considering environmental, social, and governance (ESG) factors, has emerged as a pivotal approach in portfolio selection and management. Investing in companies that address global challenges and create positive impact has gained recognition. The demand for organizations resilient to crises and incorporating ESG principles has grown. As one of the fastest-growing economies, India had an opportunity to tap into sustainable investments. Recognizing the implications of sustainability risks, global PE/VC players and domestic investors have increasingly integrated ESG considerations. ESG served as a tool to assess company behavior and estimate financial prospects, starting with governance.