Comparing Index Performance: DJSI & Low Carbon

The video discusses the performance of ESG indices compared to conventional indices like the S&P 500 and S&P Global 1200. It highlights the competitive returns of ESG indices over various time frames and explains how these indices are formed. The video also explores the impact of ESG factors on the bond market, noting that firms with high ESG scores tend to have better credit ratings and tighter yield spreads. It concludes with a discussion on the risks and limitations of ESG investing, emphasizing that past performance is not indicative of future results.

What is the significance of the 2% excess return identified by Sustain Analytics over the seven-year period?

How do the characteristics of firms with high ESG governance affect their credit ratings and yield spreads?

What are the potential risks associated with socially responsible investing as mentioned in the text?