ESG Indices

Overview

With the development of ESG securities and ESG bonds, ESG indices have gradually become a necessary financial product in the market. Although active management is still the main method in ESG investment, the growth of the passive market means that ESG index will play an essential role in asset allocation. 

In addition to index companies and exchanges, some research institutions also launches different types of ESG indices.

ESG Indices Classification

The categories of ESG indices are similar to ESG investment methods, and methods such as negative screening, positive screening, and thematic investment can all be used for index construction.

Exchanges and index companies are the main groups providing ESG indices, which may be used for passive asset allocation in the future and become financial products.