Explanation:

Recently, ICICI Prudential Mutual Fund, launched its ESG Fund.

• ESG stands for Environment, Social Responsibility And Corporate Governance.
• The ESG funds use these parametres as filters while picking stocks for investment.
• The focus is on companies that adopt environment-friendly practices, produce products or services that influence society positively and conduct their business ethically.
• There are no strict norms on what constitutes ESG companies.
• Each fund house follows different parameters to assign scores to companies on ESG to short-list stocks.

Hence only statement 1st is correct.