Our ESG Philosophy
It is our view that companies we invest in should not contravene good practices when it comes to the environment, to society, or from a governance perspective (ESG). Whilst we acknowledge that Indian listed companies are generally yet to reach the same standards and practices of their European, North American, Japanese, Australian, and New Zealand peers, it is a work in progress. Several companies are recognizing that observing good practices when it comes to ESG is rewarding them with better valuations and are likely to seek betterment in this aspect. We have taken the view that ESG investing is philosophically important to us. At this stage we employ a negative screening process on harmful industries in India is our view and seek to develop this further and the ecosystem in India adapts to greater transparency in reporting. We screen out the paper, tobacco, alcohol, gambling, coal, nuclear and defence industries.
Universe of approximately 1,000 companies (above A$100m)
India Avenue's selection of investment advisers includes RFP questions on ESG awareness, commitment and resources
Seven harmful industries excluded
Materiality test of 20% of revenue split from harmful industry
Embedded exclusions in advisory mandates
Final Portfolio
(60-75 companies)
Monitored via ESG Scores and Controversies
ESG Score
ESG Controversies Score
Source: Foresight Analytics-LSEG.
- IAEF refers to India Avenue Equity Fund
- ESG Score measures the company’s ESG performance based on verifiable reported data in the public domain.
- ESG Controversies Score are calculated based on 23 ESG controversy topics.
- Currently the top 150 companies by market capitalisation in India are required to report ESG data in alignment to the BRSR core methodology, articulated by India’s regulator, SEBI.
- It is likely therefore that our benchmark, the MSCI India will have a higher ESG score than IAEF until the reporting requirement spreads to the Top 500 companies by market capitalisation (by FY27).
- Meanwhile, IAEF scores better when it comes to controversies relative to the MSCI India. This means the companies in the fund are less involved in controversies relative to its benchmark.
India Avenue's ESG Philosophy
OUR COMPANIES
| HDFC Bank Ltd | Financials | ESG.pdf (hdfcbank.com) |
| Bharti Airtel Ltd | Communication Services | Airtel Sustainability Journey & Accolades |
| Infosys Limited | Information Technology | Infosys - ESG |
| Bajaj Finance | Financials | Bajaj Finserv Impact - ESG (aboutbajajfinserv.com) |
| Axis Bank Ltd. | Financials | ESG Governance - CSR - Axis Bank |
| ICICI Bank | Financials | ESG_Policy.pdf |
| Shriram Finance Ltd | Financials | Know The Corporate Social Responsibility (CSR) Policy | Shriram Finance |
| Redington (India) Ltd. | Information Technology | Esg - Redington |
| Aurobindo Pharma Ltd | Healthcare | aurobindo.com/sustainability/esg-sustainability |
| Interglobe Aviation Ltd | Industrial | ESG | InterGlobe |
Materiality Check
- India Avenue tests for materiality by looking at our companies revenue split across industries. As areas of concern arise, we will leverage the insights of our network to do a deeper dive into company activities.
- *Portfolio as at 30/06/2025. Data as at annual reports FY25 (we will update this once per year in September).
- +61 2 9071 0124
- IA@indiaavenue.com.au
- India Avenue Investment Management Pty. Ltd. AFSL 478233 | ABN: 38 604 095 954 Level 4, 261 George Street, Sydney NSW 2000, Australia.
Quick Links
Subscribe
Get our monthly research and updates on our offerings that bring you valuable insights, opinion, and education.
© 2025 India Avenue Investment Management Australia Pty. Ltd. . All rights reserved.
Design and Developed by Aniktantra