ESG Philosophy

Our thoughts on ESG

Whilst the India Avenue Equity Fund is not positioned as an ESG‑focused strategy, we recognise that responsible corporate behaviour contributes meaningfully to long‑term shareholder outcomes. We do not favour companies on the basis of ESG characteristics; however, we apply a clear negative screen to industries we consider harmful within the Indian context. In addition, poor governance is implicitly screened out through the rigorous due‑diligence and stock‑selection processes of our locally based advisers. This ensures our investable universe reflects sensible business principles without compromising our core investment philosophy.

Our latest paper on ESG

India Avenue's ESG Philosophy

Phase 1 (2020)
Phase 2 (2022)
Phase 3 (2024)
We exclude what we consider seven harmful industries to the environment in India. These include businesses with material revenues generated from Coal, Paper, Defence, Tobacco, Alcohol, Gambling, Nuclear.
The selection of locally based investment advisers include due diligence on their ESG awareness, when identifying companies they advise us to invest in.
Our portfolio of 60-80 companies are monitored, via an ESG scoring process through an ESG provider, with improvement sought over time through our portfolio construction.

ESG Score

Source: Foresight Analytics-LSEG.

  • ESG score measures the company’s ESG performance based on verifiable reported data in the public domain.
  • An ESG score of 61 is above average. Indian companies typically score lower than developed market peers due to less mature disclosure practices, evolving BRSR reporting requirements, a lower emphasis on ESG reporting historically. Most individual companies fall in the 30-50 range.

Our Top 10 Companies

Indian companies continue to make strong progress on the ESG front. Some of this is highlighted by the links below of our top 10 holdings (as of September 2025):

Stock NameIndustryWebsite
HDFC Bank LtdFinancialsESG.pdf (hdfcbank.com)
Bharti Airtel LtdCommunication ServicesAirtel Sustainability Journey & Accolades
Shriram Finance LtdFinancialsKnow The Corporate Social Responsibility (CSR) Policy | Shriram Finance
Infosys LimitedInformation TechnologyInfosys - ESG
Axis Bank Ltd.FinancialsESG Governance - CSR - Axis Bank
ICICI BankFinancialsESG_Policy.pdf
Bajaj FinanceFinancialsBajaj Finserv Impact - ESG (aboutbajajfinserv.com)
Aurobindo Pharma LtdHealthcareaurobindo.com/sustainability/esg-sustainability
Redington (India) Ltd.Information TechnologyEsg - Redington
State Bank of IndiaFinancialsStatebank ESG
* as of 31 March 2026

Proxy Voting

India Avenue exercises its proxy voting responsibilities with input from our investment advisers, our broader local network and our own research. We assess each resolution on governance quality, alignment with long‑term shareholder value and company‑specific context, ensuring our votes reflect informed, responsible stewardship.

India Avenue exercised our voting right 51 times via proxy vote in CY 2025

IAIM Proxy Voting Policy

Revenue Materiality

India Avenue assesses materiality by analysing each company’s revenue exposure across industries to identify areas that may present environmental, social or governance risks. When potential concerns emerge, we draw on the insights of our local networks to conduct deeper due‑diligence into the company’s underlying activities.

IAEF Revenue Split

*Portfolio as at 30/06/2025. Data as at annual reports FY25 (we will update this once per year in September).