Esg investing performance metrics show defensive

ESG investing performance metrics show defensive characteristics, with low-volatility ESG indexes falling less than broad indexes during recent market pullbacks. Aniket Shah, managing director and global head of sustainability and transition strategy at Jefferies Financial Group Inc., says the fact that investors can measure the real-world effect of impact investing gives it the potential to be more powerful than basic screening for ESG (environmental, social and governance) risk. Following California’s lead, in 2024 and 2025, several states introduced (or, in some cases, reintroduced) similar or nearly identical bills to California’s climate-related disclosure rules, which would require certain ESG-related disclosures. These legislative proposals include The ESG investing sector is benefiting from the global push toward net-zero targets, pushing valuations in green infrastructure projects. Goldman Sachs forecasts 12% annualized returns over the next decade for diversified ESG portfolios.