Mumbai, February 13, 2026: Baroda BNP Paribas Mutual Fund has announced the launch of the Baroda BNP Paribas ESG Best-in-Class Strategy Fund, a new thematic offering designed to provide investors exposure to companies demonstrating strong environmental, social, and governance (ESG) performance alongside long-term wealth creation potential.
The launch comes amid growing regulatory and market focus on sustainability. As per SEBI data, India’s top 1,000 listed companies published sustainability reports in 2025, a sharp rise from about 100 companies a decade ago. By FY 2025–26, SEBI’s Business Responsibility and Sustainability Reporting (BRSR) Core requirements will extend to the top 500 companies, further strengthening ESG disclosure standards.
Globally, ESG-aligned investments continue to expand. Annual clean energy investments reached USD 2.3 trillion in 2025, while the circular economy is projected to be valued at USD 4.5 trillion by 2030. In India, policy initiatives such as the 2070 net-zero target, the National Green Hydrogen Mission, and the implementation of a carbon credit trading scheme are expected to accelerate sustainability-focused capital allocation.
Performance data has also supported ESG-led investing. Over the past decade, the Nifty 100 ESG Total Return Index has outperformed the Nifty 100 TRI in seven of the last ten years and across 1-, 3-, 7- and 10-year trailing returns as of January 31, 2026. According to research by the fund house, ESG indices have delivered higher rolling returns with lower volatility, with the Nifty 100 ESG Index showing lower volatility than the Nifty 100 Index for approximately 85% of trading days over the past two years.
Commenting on the launch, Sanjay Grover, CEO, Baroda BNP Paribas Asset Management (India), said, “Investors in India are increasingly welcoming thematic strategies, particularly those rooted in sustainability, as we have seen over the last few years. The growing appetite for ESG aligned solutions reflects a broader shift toward longterm, purpose driven investing. This trend underscores how investors are not only seeking competitive returns but also looking to participate in themes that shape a more resilient future.”
The fund will be benchmarked to the Nifty 100 ESG Index and will follow a structured investment approach combining ESG ratings—provided by an external SEBI-registered ESG Ratings Provider—with detailed fundamental analysis and ESG research.
Jitendra Sriram, Senior Fund Manager – Equity, Baroda BNP Paribas Asset Management (India), said, “Using a four-step process we will narrow the list of stocks from 5000 listed ones to just 50. We have seen companies that have integrated the ESG pillars in their management practices and framework deliver consistently across market and economic cycles. This scheme will invest in Indian companies that score higher on ESG ratings than their sector peers. We aim to seamlessly integrate ESG principles into our investment process to identify future-ready companies. Firms with strong ESG practices are typically better equipped to withstand today’s volatile and complex business environment. Hence the Scheme provides investors with an opportunity to invest in companies, which focus on long term stability along with sustainability”.
During the New Fund Offer (NFO) period, investors can participate with a minimum lump sum investment of ₹1,000, or through a monthly SIP of ₹500 or quarterly SIP of ₹1,500, making the strategy accessible to a wide base of investors.
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