ESG in Index Investing: Deconstructing Five Myths

EMEA Head of ESG Investment Strategy

Two of the most prominent investment trends of the post-global financial crisis world have been the sustained rise of both indexing and environmental, social and governance (ESG) investing. These trends have combined with many investors now seeking ESG and climate indexing strategies to achieve long-term and cost-effective sustainable returns.

Yet, many myths have arisen over the years around what sustainability-minded investors can achieve within an index approach. This piece aims to set the facts straight and clear up some misunderstandings of ESG in index investing.