Tying The Threads Between Investment And Legality Of Environment, Social And Governance Matters (ESG)
- IJLLR Journal
- Jun 4
- 1 min read
Nimisha Fogla, KES’s J.H.P Law College
ABSTRACT
ESG investments have often been questioned on the areas of legality, returns, potential growth and sacrifice of financial returns. To broach the concerns of people regarding their well-being, environmental safety, inclusivity in business, recognition to gender diversity have become crucial for business leaders. Whether sacrificing financial returns on ESG helps in rectifying the cracks in environment and governance is debatable where the conclusion is still indeterminate. While there exists mandatory disclosure requirements and reporting framework on ESG imposed by the authorities, there still remains grey areas on the efficacy of the strategies to enhance and improve the return on investment on ESG. To answer a few concerns surrounding the potential aspect and legality of ESG investments is the purpose of this paper where there are examples of Companies earning money through ESG investments and companies spending their capital and revenue expenditure on the upliftment of the economy.
