AMC, as a prominent player in the Indian industry, holds a substantial portfolio of investments across various asset classes. This study seeks to investigate the extent to which AMC has incorporated green finance strategies, including sustainable investment practices, environmental risk assessment, and the development of eco-friendly investment products. The research will employ a mixed-methods approach, combining quantitative analysis of AMC's portfolio to identify green investments, and qualitative interviews with key stakeholders within the organization to gauge their perceptions, strategies, and challenges related to green finance integration. By shedding light on the green finance practices of AMC, this study contributes to the broader discourse on sustainable finance in India's financial sector. It offers insights into the challenges and opportunities faced by asset management companies in aligning their operations with environmental and social responsibility and provides a foundation for further research and action in this critical area. Ultimately, this study aims to foster a more sustainable and environmentally responsible approach to asset management within AMC and the Indian industry.
TopIntroduction
The global finance industry is experiencing a paradigm shift towards sustainability and environmental responsibility. As climate change and environmental degradation continue to pose significant threats to our planet, the financial sector has a pivotal role in channeling capital towards environmentally friendly and sustainable initiatives (Irfan, Kadry, Sharif, & Ullah Khan, 2023). This study aims to explore the integration of green finance principles within the operations of Asset Management Company (AMC).
With the increase in degradation of the natural environment over time, it has become necessary to take initiatives to support future growth through the implementation of environmental (green) strategies and framework (Calkins, K. G. 2005, July 18). In this regard AMCS have a key role to play. AMC can make a big impact on the environment through managing their internal business processes as well as external lending and investing policies. By adopting Green Finance, a Amc can take action and make a difference to the natural environment by going environment-friendly.
By implementing and adhering to various Green Finance practices, Indian companies are contributing to the environment (Irfan, Elmogy, Majid, & El-Sappagh, 2023). However, Green Finance practices varies across the companies and in this regard, this study analyzes the Green Finance Performance of Amcs with the help of a measuring tool (Irfan, Kassim, Shaikh, Kumar, & Jhamnani, 2021). Additionally, this study examines perception of different stakeholder groups on Green Finance in light of their increased environmental consciousness.
Need of the Study
Company plays a key role as a mediator of funds in the economy. Company significance in an economy and the rise in interest of stakeholders towards environment have made it necessary for the AMCs to contribute towards the environment. Thus, in this regard it is important to measure Green performance of AMCs.
In context of India, SEBI guideline on Business Responsibility Report has made it necessary for top 500 companies to disclose about their social and environmental activities. Companies in India are disclosing their environmental activities in their annual reports and standalone reports. It is hence important to know the progress made by different companies on Green Finance. However, there is a dearth of studies that have explored or measured Green performance of companies. It is important to compare Green finance Performance of different categories of companies. Such a study will reflect upon the comparative status of Green finance across different categories of countries (Irfan, Elhoseny, Kassim, & Metawa, 2023).
However, there are no studies that have compared Green Finance Performance of different categories of AMCs. This study thus focuses upon Green Finance Performance of Indian Private Sector.