Skip to content

Debunking the Big Myth About Sustainable/ESG Investing

The Competitive Performance of Sustainable ESG Investing

The Competitive Performance of Sustainable/ESG Investments

Today, we dispel the decades-old myth that performance must be sacrificed when investing responsibly in Sustainable/ESG assets. This myth rises again and again like Freddy Krueger in a horror movie, and, like Freddy, the myth should be laid to rest.

ESG Performance

Evidence is mounting, with global money flows into Sustainable/ESG assets soaring, that highly-rated ESG (Environmental-Social-Governance) equities and funds are, at a minimum, producing similar returns vs. traditional assets.

Below, we share four graph comparisons of broad indexes vs. the same indexes filtered for ESG leaders (click charts to enlarge). Note the 5-year returns:

MSCI EAFE ESG-Leaders – BLUE  |  MSCI EAFE Index – LIME

MSCI EM ESG-Leaders – GREEN
MSCI EM (Emerging Markets) – ROSE

MSCI USA ESG-Leaders – ORANGE  |  MSCI USA – RED 

MSCI S&P 500 ESG – BLUE  |  MSCI S&P 500 – GREEN  

If you appreciate the prospect of investing in companies that are well managed, equitable, and good corporate citizens, don’t be surprised if shifting to Sustainable/ESG investing brings positivity to your financial life. As Katherine Collins, Head of Sustainable Investing at Putnam Investments says: “You see consumers, employees, and investors increasingly reconnecting elements of environmental, social, and governance factors into their decision-making. Whether it’s a decision on where to work, a decision on what to buy, a decision on where to invest.”

For those who care about the world and people around us, the time is now to make a positive change and align your investments with your values, beliefs, and causes. These graphs begin to tell the performance story. Stay tuned.

 

Please Note:
Comparisons are not provided as a recommendation to invest in specific funds, but as broad conceptual evidence that positive ESG-focused investing does not lag in performance vs. traditional.

 

MORE ON ESG: Frequently Asked Questions About Sustainable/ESG Investing

 


SCHEDULE A CONSULTATION WITH JOSH:

Submit this form and Josh will respond personally to schedule an introductory phone call to answer your questions and learn more about your financial needs, goals, aspirations, and values. We look forward to learning how we can help.
  • This field is for validation purposes and should be left unchanged.