Performance Analysis of ESG Indices: A step towards fulfilling social responsibility

Abstract

The study fully comprehends the success of socially conscious investors on investment returns. The purpose of this paper is to compare the risk/return along with the market performance of ESG Indices of India with the conventional parent index Nifty. The analysis is accessed by applying CAPM (Capital Asset Pricing Model). Sharpe ratio and Treynor ratio are applied in order to compare the performance of the ESG indices with their benchmark Index Nifty. The results confirm that the ESG indices outperform the conventional Index Nifty and give more favorable risk-adjusted returns than the conventional Index.