As we celebrate the 43rd annual World Environment Day on June 5, a day on which the United Nations encourages worldwide awareness and action for the protection of our environment, four groups of environmental indexes from FTSE Russell have recorded a five year rise in excess of their benchmarks.
As of the end of April, all indexes within the FTSE All-World ex CW Climate Balanced Factor Indexes, FTSE Divest-Invest Developed 200 Index Series, FTSE Environmental Opportunities Index Series and FTSE ex Fossil Fuels Index Series have risen more than their benchmark indexes for the last five years.
Source: FTSE Russell. Returns as of April 30, 2017. Past performance is no guarantee of future results. Returns shown may reflect hypothetical historical performance. Please see the end for important legal disclosures.
These returns come as the fourth annual FTSE Russell global institutional smart beta survey indicates rising ESG interest by asset owners. According to the survey, 46% of asset owners currently evaluating or using investment strategies based on smart beta indexes anticipate applying ESG considerations.
Tony Campos, director, ESG product management, FTSE Russell, said:
“Recent environmental index performance supports the growing recognition by market participants globally that applying ESG considerations to portfolios can align with investment objectives and not simply meet an investment quota or policy objective. Increasingly we are seeing investors look to smart beta indexes to incorporate ESG exposure into their core passive equity portfolios.”
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Views expressed by Tony Campos are as of June 5th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.
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