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Investment funds with high sustainability ratings outperform S&P 500: Barron’s

Investing Money Sustainably
Investing Money Sustainably

by Jennifer Nastu, Environmental Leader, January 20, 2020


Highlights:

  • A report published last summer from Ethical Markets showed an upward trend in private “green” investments worldwide and claimed these investments equal a cumulative $10.387 trillion as of 2019
  • 68 out of the 153 active ESG managed US stocks didn’t make Barron’s list of the most sustainable funds
  • The number of investors that are interested in sustainable investing has gone up by 10%
  • Funds with “above average” or “high” sustainability ratings outperformed comparable funds with lower ratings in sustainability, according to Barron’s fourth annual ranking of ESG investing
  • Of the 189 funds that met the ESG criteria in 2019, 41% outperformed the S&P 500 index for the year. That’s compared to just 29% of big-cap equity funds overall that beat the index

The Climate Center has a network of sustainable businesses called the Business of Clean Energy program. Members include clean energy providers, sustainable food companies, and banks that have a “do no harm” policy for investments, and thus, do not invest in fossil fuel infrastructure. In addition, some members loan money for clean energy investments.


Read more: https://www.environmentalleader.com/2020/01/investment-funds-with-high-sustainability-ratings-outperform-sp-500-barrons/