The ESG smokescreen

Last week, mutual funds regulator SEBI permitted mutual fund companies to launch up to six ESG (environmental, social and governance) funds instead of only one that has been permitted until now. Instead of just one generic ESG fund, each AMC can now have one fund under six subtypes of ESG that it has specified: Exclusion, Integration, Best-in-class & Positive Screening, Impact investing, Sustainable objectives, and Transition or transition-related. As an investor, I'm sure you are excited and look forward to carefully evaluating the six ESG themes. I hope you find it entertaining. However, I can assure you that the fund industry is overjoyed at this boost to environmental, social, and governance causes that the regulator has provided. Everyone knows that launching more funds is the bread, butter and jam of mutual fund companies, even though it mean