Chart of the Week | December 06, 2021
Macro Insights
Carbon Efficient Companies Outperform the Overall Market
- Since 2019, the largest companies in the US have started to pledge net-zero carbon emissions or announced measures to reduce their carbon footprint and its adverse effects on the atmosphere.
- Amid the recent push for sustainable alternatives and sustainably conscious investments, investors fear that they must give up returns. However, since 12/31/2018, the S&P 500 Carbon Efficient Index has marginally outperformed the S&P 500 Index by 75 basis points.
- Thus, a heavier weight of carbon conscious companies can provide marginally higher returns while also providing portfolio exposure to environmentally conscious investments.