· Based on Environmental, Social, and Governance (ESG) principles
· Investment in companies with strong ESG practices and scores, reflecting their ability to create sustainable long term value
HDFC Life, one of India’s leading life insurers, has launched its Sustainable Equity Fund, currently available with HDFC Life Click 2 Wealth, a unit-linked product. The Company is committed to industry-leading ESG standards that help shape a sustainable future for the communities they serve and create long-term value for all stakeholders.
This Sustainable Equity Fund promotes Environmental, Social, and Governance (ESG) principles and will invest in stocks that form part of benchmark ESG indices or in stocks of companies with high ESG scores. This ESG score is calculated based on internal analysis, public disclosures, and ratings by external agencies.
ESG is a barometer of sustainable business practices, i.e., it helps identify if the business has a robust corporate governance framework, benefits society at large, and is run in an environment-friendly manner. The objective of this fund is long-term capital appreciation through investment in such select companies across market capitalisation.
HDFC Life’s ESG strategy focuses on five pillars – Ethical Conduct; Responsible Investment; Diversity, Equity, and Inclusion; Holistic Living; and Sustainable Operations. This ESG strategy has been developed based on global benchmarks and material topics for HDFC Life, with the intent to address ESG risks and drive meaningful impact.
Commenting on the launch, Vibha Padalkar, MD & CEO, HDFC Life, said “ESG is a way of doing business that generates sustainable growth, benefits all stakeholders and hence is an integral part of the value creation process itself. The pandemic has disrupted businesses and livelihoods and reinforced the interconnectedness of finance and sustainability. We believe that companies with strong governance practices, invest in developing human resources, cater to all strata of society, and help preserve the environment today will be the companies of tomorrow. These companies will face fewer risks, have lower costs, and generate strong returns over the long term.”
Further, she added, “Today’s investors are more conscious about responsible investing and sustainable wealth creation. This trend is evident because assets under management applying ESG frameworks or strategies have increased from USD 22.9 trillion in 2016 to USD 40 trillion in 2020*. Our Sustainable Equity Fund will be offered through our unit-linked products, starting with HDFC Life Click 2 Wealth. This fund offers customers an opportunity to contribute towards building a sustainable future while protecting their families and saving for their goals.”
HDFC Life was recently adjudged the ‘Best Governed Company’ in the Listed Segment, Large category at the 21st ICSI National Awards for Excellence in Corporate Governance.