Environmental, Social, and Governance (ESG) analysis is becoming an important part of the investment process. This was emphasised on the inaugural day of the third edition of the Research Symposium on Finance and Economics (RSFE) 2022 organised by the IFMR Graduate School of Business at Krea University on Thursday.
“Investors are increasingly showing interest in other aspects of a firm’s operation namely ESG. This is a revolution for the way asset markets work since there are investors who are potentially interested in different things – cash flow vs ESG,” said Itay Goldstein, Joel S. Ehrenkranz Family Professor of Finance and Professor of Economics, Wharton School, University of Pennsylvania, U.S., in his keynote address.
He pointed out that this had led to increase in the number of green investors and improvement in non-monetary information.
“Today, ESG is an imperative parameter in an organisation’s strategy. With our lives being invaded by non-biodegradable products, the biggest challenge is getting corporates to respond to this critical issue. I believe an economic deterrent coupled with shareholder activism could influence corporates to navigate a socially responsible path and build resilience into their infrastructure,” Lakshmi Kumar, Dean, IFMR GSB, Krea University, said in her opening remarks.
“There has been a structural alteration of the business landscape – technology has become the language of business and sustainability its underlying grammar,” Ramkumar Ramamoorthy, Pro Vice-Chancellor, Professional Learning, Krea University, said.
More than 50 researchers from India and abroad will present their research in areas of finance and economics at the two-day symposium. The aim of the symposium is to create a forum for discussion and deliberation on emerging issues in Finance and Economics, Praveen Bhagawan, Chair, RSFE 2022, said in his welcome address.
