ESG Funding India

Modulus Housing

J Joel Samuel
 What’s ESG

• Companies get funded based on Environmental, Social & Governance

factors.
• Funding will lead to Long term wellness for the society.
• 12$ Trillion worth of investments were made through ESG Funds in the year
2018
• In India, the ESG based funds have risen 4.7x in two years from 2,630C to
12,300C.
 Top ESG Funders in India

• SBI Magnum Equity ESG Fund 

• Axis ESG Equity Fund
• ICICI Prudential ESG Fund 
• Quantum India ESG Equity Fund 
• Kotak ESG Opportunities Fund
• Aditya Birla Sun life ESG Fund
• Mirae Asset ESG Sector Leaders ETF
 SBI Magnum Equity ESG Fund

Stock Name (%) Of Total RELIANCE INDUSTRIES LTD. 1.84

AUM
CHOLAMANDALAM INVESTMENT & FINANCE CO. 1.72
INFOSYS LTD. 8.45 LTD.
HOUSING DEVELOPMENT FINANCE CORPORATION
6.05 SBI LIFE INSURANCE COMPANY LTD. 1.71
LTD.
ICICI BANK LTD. 5.56 CUMMINS INDIA LTD. 1.71
HDFC BANK LTD. 5.13 CASH, CASH EQUIVALENTS AND OTHERS 1.66
AXIS BANK LTD. 4.05
MICROSOFT CORPORATION 1.56
WIPRO LTD. 3.62
LARSEN & TOUBRO LTD. 3.47 TVS MOTOR COMPANY LTD. 1.5
BHARTI AIRTEL LTD. 3.41 PVR LTD. 1.43
PAGE INDUSTRIES LTD. 3.3 HINDALCO INDUSTRIES LTD. 1.37
TATA CONSULTANCY SERVICES LTD. 3.23
TITAN COMPANY LTD. 3.04 CIPLA LTD. 1.33
TATA MOTORS LTD. 2.93 INTERGLOBE AVIATION LTD. 1.27
ULTRATECH CEMENT LTD. 2.81 HCL TECHNOLOGIES LTD. 1.19
FSN E-COMMERCE VENTURES LTD. 2.77 JUBILANT FOODWORKS LTD. 1.1
BAJAJ FINANCE LTD. 2.69
MARUTI SUZUKI INDIA LTD. 2.67 INFO EDGE (INDIA) LTD. 1.03
STATE BANK OF INDIA 2.58 ICICI LOMBARD GENERAL INSURANCE COMPANY 1.01
LTD.
DIVI'S LABORATORIES LTD. 2.4
TATA STEEL LTD. 2.28 COLGATE PALMOLIVE (INDIA) LTD. 1.01
BRITANNIA INDUSTRIES LTD. 2.24 ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. 0.77
L&T TECHNOLOGY SERVICES LTD. 2.23 NUMERO UNO INTERNATIONAL LTD. 0
ABB INDIA LTD. 1.88
JADOONET.COM 0
SBI Magnum Equity ESG Fund
 Axis ESG Equity Fund
% of
Name of issuer Assets
Bajaj Finance Limited 10.56
Nestle India Limited 9.6
Avenue Supermarts Limited 9.07 % of Net Assets
Tata Consultancy Services Limited 8.41
Wipro Limited 7.39 2%2%
0%
1%
1%
4%
Info Edge (India) Limited 5.68 22%
4%
Housing Development Finance Corporation
Ltd. 4.73 4%

Kotak Mahindra Bank Limited 4.1 5%

Torrent Power Limited 3.81 6%

18%
HDFC BankSector
Limited
Allocation* % of Net Assets3.15
FINANCIAL SERVICES 22.54 11%
IT 18.1
17%
CONSUMER SERVICES 16.65
CONSUMER GOODS 10.65 FINANCIAL SERVICES IT CONSUMER SERVICES
INFORMATION TECHNOLOGY 6.08 CONSUMER GOODS INFORMATION TECHNOLOGY HEALTH CARE
HEALTH CARE 5.51 INDUSTRIALS FINANCIALS POWER
INDUSTRIALS 4.49 CONSUMER STAPLES CONSUMER DISCRETIONARY COMMUNICATION SERVICES
AUTOMOBILE OTHERS^ CHEMICALS
FINANCIALS 3.99
Cash & Cash Equivalent
POWER 3.81
CONSUMER STAPLES 2.5
CONSUMER DISCRETIONARY 2.33
COMMUNICATION SERVICES 1.38
AUTOMOBILE 1.23
OTHERS^ 0.98
CHEMICALS 0.07
Cash & Cash Equivalent -0.31
 ICICI Prudential ESG Fund 
Company Name % to NAV
HDFC Bank Ltd. 8.80%
Infosys Ltd. 6.40%
HDFC Ltd. 6.10% % to NAV
Kotak Mahindra Bank Ltd. 5.90%
Reliance Industries Ltd. 5.30% 4% 2%
Tata Consultancy Services Ltd. 4.80% 5%
Hindustan Unilever Ltd. 4.70% 20%

Divi's Laboratories Ltd. 4.50% 6%

Oracle Financial Services Software Ltd. 3.60%
Mahindra & Mahindra Ltd. 3.60%
6%

7%
Sector name % to NAV 18%

Software 17.90%
Finance 15.90% 14%

Banks 15.70%
18%
Consumer Non Durables 12.30%
Auto 6.20% Software Finance Banks Consumer Non Durables
Auto Petroleum Products Industrial Products Pharmaceuticals
Petroleum Products 5.30% Power Retailing

Industrial Products 5.20%

Pharmaceuticals 4.50%
Power 3.20%
Retailing 1.90%
 Quantum India ESG Equity Fund
Company Name % to NAV
Infosys Ltd* 4.76% Kansai Nerolac Paints Ltd 1.69%
Tata Consultancy Services Ltd* 4.75% HCL Technologies Ltd 1.56%
Tata Consumer Products Ltd* 3.77% Colgate Palmolive India Ltd 1.53%
Ambuja Cements Ltd 1.53%
Housing Development Finance Corporation Ltd* 3.63% Thermax Ltd 1.45%
Marico Ltd* 3.45% Titan Company Ltd 1.39%
Wipro Ltd* 3.34% Dabur India Ltd 1.38%
Tata Chemicals Ltd* 3.24% Dr. Lal Pathlabs Ltd 1.36%
Tata Communications Ltd* 2.79% Vinati Organics Ltd 1.34%
HDFC Bank Ltd* 2.75%
The Indian Hotels Company Ltd 1.34%
Voltas Ltd* 2.70%
Mphasis Ltd 1.26%
Mahindra & Mahindra Ltd 1.25%
Havells India Ltd 2.56%
Indusind Bank Ltd 1.23%
Kotak Mahindra Bank Ltd 2.50%
Castrol India Ltd 1.18%
TVS Motor Company Ltd 2.46%
Axis Bank Ltd 2.44% Crompton Greaves Consumer Electricals Ltd 1.10%
Tech Mahindra Ltd 2.40% Bosch Ltd 1.02%
Syngene International Ltd 2.22% Info Edge India Ltd 1.00%
Power Grid Corporation of India Ltd 2.19% Gujarat Gas Ltd 0.43%
ACC Ltd 2.17%
Maruti Suzuki India Ltd 2.15%
Persistent Systems Ltd 2.08%
Hindustan Unilever Ltd 2.05%
Nestle India Ltd 1.97%
Tata Motors Ltd 1.94%
Rallis India Ltd 1.87%
Asian Paints Ltd 1.87%
Hero MotoCorp Ltd 1.77%
ICICI Bank Ltd 1.76%
 Quantum India ESG Equity Fund
% to NAV

IT - Software
IT - Software Agricultural Food & other Products Finance
Personal Products IT - Software Chemicals & Petrochemicals
Telecom - Services Banks Consumer Durables
Consumer Durables Banks Automobiles
0%
1%
1%
5% 5% Banks IT - Software Healthcare Services
11%
1%
1% %
1%
1% 4% Power Cement & Cement Products Automobiles
1%
1%
1%
2% 4% IT - Software Diversified FMCG Food Products
2%
2% 4%
2% Automobiles Fertilizers & Agrochemicals Consumer Durables
2% 4%
3%
2% 3% Automobiles Banks Consumer Durables
2% 3%
2% IT - Software Personal Products Cement & Cement Products
2%
2% 3%
2% 3%3% Electrical Equipment Consumer Durables Personal Products
2%2%2% 3%
3%
2%
3% Healthcare Services Chemicals & Petrochemicals Leisure Services
IT - Software Automobiles Banks
Petroleum Products Consumer Durables Auto Components
Retailing Gas
 Kotak ESG Opportunities Fund
Company % to NAV Sector % to NAV
Infosys Ltd. 8.23 Financial Services 27.14
Information Technology 21.36
Tata Consultancy Services Ltd. 5.68 Metals & Mining 7.26
Hindalco Industries Ltd. 5.62 Chemicals 6.19
State Bank Of India. 5.33 Construction Materials 6.17
Healthcare 5.4
ICICI Bank Ltd. 5.18
Fast Moving Consumer Goods 4.4
Bajaj Finance Ltd. 4.7 Construction 3.54
Tech Mahindra Ltd. 4.16 Capital Goods 3.45
Larsen and Toubro Ltd. 3.54 Collateralized Borrowing and Lending Obligation/
Reverse Repo 3.02
Balrampur Chini Mills Ltd. 3.32 Automobile And Auto Components 2.63
HDFC Bank Ltd. 3.17 Telecommunication 2.42
Services 2.28
Consumer Durables 2.23
%2%to1%
0%
1%
2% NAV
1% Consumer Services 1.4
2%
3%
3% 27% Net Derivatives Exposure 1.35
4%
3% Mutual Fund Units 0.66
4% Media, Entertainment & Publication 0.15
5%

6% 21%
6%
7%

Financial Services
Information Technology
Metals & Mining
Chemicals
Construction Materials
Healthcare
Fast Moving Consumer Goods
Construction
Capital Goods
Collateralized Borrowing and Lending Obligation/ Reverse Repo
 Aditya Birla Sun life ESG Fund
Asset Allocation % to Net Assets
Company % of Net Assets SOFTWARE 31.34
BANKS 17.36
Infosys Limited 9.78 CONSUMER DURABLES 8.72
Larsen & Toubro Infotech Limited 6.78 FINANCE 6.68
Bajaj Finance Limited 6.44 CHEMICALS 3.73
MindTree Limited 5.23 AUTO ANCILLARIES 3.59
HEALTHCARE SERVICES 3.12
Axis Bank Limited 4.5 OTHERS 3.03
HCL Technologies Limited 4.38 PHARMACEUTICALS 2.91
HDFC Bank Limited 4.09 RETAILING 2.82
SRF Limited 3.73 CEMENT & CEMENT PRODUCTS 2.73
INDUSTRIAL PRODUCTS 2.7
State Bank of India 3.47 ENTERTAINMENT 2.56
ICICI Bank Limited 3.16 AUTO 2.08
INDUSTRIAL CAPITAL GOODS 1.96
% to Net Assets TEXTILE PRODUCTS 1.53
CONSTRUCTION 1.31
COMMERCIAL SERVICES 1.24
INSURANCE 0.82
SOFTWARE BANKS
CONSUMER DURABLES FINANCE
Cash & Cash Equivalent -0.25
3% CHEMICALS AUTO ANCILLARIES
211%
2%
2%
0%
%1%% HEALTHCARE SERVICES OTHERS
3% PHARMACEUTICALS RETAILING
3% 31%
3% CEMENT & CEMENT PRODUCTS INDUSTRIAL PRODUCTS
3%
3%
3% ENTERTAINMENT AUTO
4% INDUSTRIAL CAPITAL GOODS TEXTILE PRODUCTS
4%
CONSTRUCTION COMMERCIAL SERVICES
7% 17%
9% INSURANCE Cash & Cash Equivalent
 Data Interpretations

• ESG Funders like Aditya Birla Sun Life ESG Fund, Kotak ESG Fund & SBI
Magnum ESG Funds allocate around 3-4% of their stakes on housing sector
companies.
• Funding Possibilities in Housing Sector:
• Aditya Birla Sun Life ESG Fund (3% of 1013.15C = 30C )
• Kotak ESG Fund-(3% of 1527.32C= 45.81C)
• SBI Magnum ESG Funds-(3% of 4272.22C=128.16C)
 ESG Score

• Companies are assessed based on the ESG Score to get approved for ESG
Funding opportunities.
• Energy savings, Deforestation, Corporate behaviour, Worker & employee
compensation, etc are some of the few factors of ESG Score.
• Sustainanalytics – Index
• DJSI- Dow Jones Sustainability Index
• ESG Scores are generally from 0-40+
 Indian startup - ESG

• https://www.business-standard.com/content/press-releases-ani/india-s-first
-esg-focused-start-up-venture-program-one-in-india-launched-1210928011
65_1.html
• https://justdamnright.com/one/ - Helps measures ESG Score and provides
funding support through ESG
• The Company provides scalable solutions with high impact in affordable
housing solutions.