INSUBCONTINENT EXCLUSIVE:
2021 saw record-inflows into ESG funds and companies across the world.The Covid-19 crisis accelerated the trend for a more sustainable
approach to investing.Policymakers and investors viewed the crisis as a wake-up call as parallels were drawn between the unforeseen risks of
a pandemic and issues such as climate change.As a result, 2021 saw record-inflows into ESG funds and companies across the world.What is
ESG?ESG is an acronym for Environmental, Social, and Governance
The term is used to describe a set of standards that evaluate a firm's collective conscientiousness for social and environmental
factors.ESG companies not only care about their profits and finances but also care about people and the environment, by focusing on
sustainable development.The ESG trend has already gained momentum in India, with companies choosing to act with greater social and
environmental responsibility.Here are five companies that are leading the way.#1 Nestle IndiaThe first ESG stock on our list is Nestle
India.The Indian FMCG giant works closely with farmers and local communities to raise the quality of life and economy of the regions it
operates in.The company has helped build facilities for drinking water and lavatories in the Moga factory milk district
It also provides loans to farmers.Apart from this, it also focuses on sustainability.From 2005 to 2020, for every ton of production, Nestle
reduced the usage of energy by around 48%, water usage by around 52%, generation of wastewater by around 5%, and reduction in specific
direct GHG (green-house gas) emissions by 53%.Its key renewable energy projects contributed to GHG savings as well
the company has set an ambitious target of recycling or reusing its entire packaging by 2025.With respect to CSR (corporate social
health, and wellness awareness among adolescents
It also implemented projects to develop community support for citizens.During the pandemic, the company partnered with the National
Association of Street Vendors of India (NASVI).Through the partnership, it developed programmes to train street food vendors on food safety,
hygiene, Covid-19 precautionary measures and digital payments.In its latest quarterly results, Nestle reported a 9.6% YoY increase in
waste to landfill' site, which means that there is no manufacturing discharge into the environment.The plant also leverages technology,
experts, employees and renewable sources of energy to reduce its overall carbon footprint and improve energy and water efficiency.As a
result, in the last 10 years, it has reduced its carbon emissions by 90% and energy consumption by 30%.P-G is also committed to help reduce
the flow of plastic by making changes now and bringing long term solutions
It has put in place a system to recover and recycle multi-layered plastic packaging waste
It's also working with various waste management companies and the industry to collect, segregate and recycle multi-layered plastic
sustainable business solutions.In the year 2021, P-G spent Rs 288 m on CSR activities
holistic education for underprivileged children while P-G Suraksha India provides comforts to those affected by natural disasters.During the
pandemic, the company extended support to communities through donations of in-house manufactured masks and sanitisers to combat the spread
of the virus via its Covid-19 response and relief program.In its latest quarterly results, P-G Hygiene reported a marginal increase in
revenue at Rs 1,060 crore on account of a high base
Net profit fell 14% YoY to Rs 220 crore on account of commodity cost inflation.#3 Colgate-Palmolive IndiaThe third ESG stock on our list is
Colgate-Palmolive India.The personal-care products company is engaged in a variety of social activities which are carried out through
to drinking water in states like Maharashtra, Bihar, West Bengal, and Rajasthan.In the education space, its scholarship program offers
deserving candidates foundational support through scholarships and mentorship.In the financial year 2021, Colgate-Palmolive spent Rs 21
The company's manufacturing plants and offices are focused on recycling and reusing water.It also carries out sustainability and
energy-saving initiatives across its manufacturing sites.In August 2021, Colgate became the first mass-market brand to launch recyclable
toothpaste tubes in India.In partnership with EPL (formerly Essel Propack), the company has started manufacturing recyclable tubes for
Colgate Vedshakti toothpaste and Colgate Active Salt portfolio.The shift to recycling across the company's product portfolio will take
time to fulfil keeping in mind the company's vendors and consumers
It will be completed by 2025.Sub-brands are already in-line with taking the necessary steps to become sustainable
Eventually, the company aims to make the entire portfolio sustainable.For the September 2021 quarter, Colgate reported a 46.8% YoY increase
The company's net profit also more than doubled during the quarter.#4 Page IndustriesThe fourth ESG stock on our list is Page
Industries.The company is the exclusive licensee of the international innerwear brand JOCKEY in India and is a market leader in the
It's also the exclusive licensee of the Speedo brand in India.Page Industries has tried to adopt a sustainability culture in all aspects
of its business.Some of its initiatives include having a Restricted Substances List (RSL) policy, access to safe water, sanitation and
hygiene and 100% recycling of its packaging as well as production waste.The company also takes water and energy conservation steps along the
In the financial year 2021, Page Industries spent Rs 6.26 crore on CSR activities.The company partnered with NGOs to help in the upliftment
of underprivileged communities in the field of education and healthcare.Through its Sugamya Shiksha program, the company provided quality
education and vocational skills in government schools in and around the areas it operates in.Educational support and career guidance were
provided as well.The company's Chirayu program provided health education, awareness and support to children with medical issues while
Jockey Fit Children (JFC) enhanced the health and physical fitness of children.During the pandemic, Page Industries sponsored medicines,
oxygen concentrators and over 100,000 masks to government hospitals and government authorities.Awareness on Covid-19 and Do's and Don'ts
for Covid-related safety was imparted and face masks were distributed to the public for free.In its latest quarterly results, Page
Industries reported a 46.4% YoY increase in revenue as sales across all product categories grew backed by expansion in the company's
portfolio and existing network.Net profit rose by 44.8% YoY.Snapshot of ESG stocks from Equitymaster's stock screenerHere's a quick view
at the above-mentioned companies based on some crucial financial parametersPlease note that these parameters can be changed according to
lower cost of capital compared to other companies with lower scores.They are also able to mitigate external issues and consequently reduce
stocks with the same amount of caution as one would view other stocks.ESG stocks can be prone to greenwashing and a lack of globally
long-term investment.If you plan to invest in an ESG stock, assess the fundamentals and prospects of the business
Sustained research must not be compromised despite the positive odds.Disclaimer: This article is for information purposes only
