In today’s investment landscape, Environmental, Social, and Governance (ESG) criteria have become integral yardsticks in the equity index composition, reflecting a transformation in investor priorities. These non-financial factors not only gauge a company’s societal impact but are also becoming increasingly intertwined with long-term financial performance. This article takes a closer look at how ESG criteria are influencing the construction and performance of equity indexes, signaling a shift towards more responsible and sustainable investing.
Defining ESG and Its Influence on Indexes
ESG criteria encompass a broad range of practices—from environmental sustainability efforts...
In today’s investment landscape, Environmental, Social, and Governance (ESG) criteria have become integral yardsticks in the equity index composition, reflecting a transformation in investor...