The time has come for a new approach to ESG indexes.
The suite is comprised of three ESG index pairs: CRSP ISS ESG Large Cap Prime, CRSP ISS ESG Large Cap, and CRSP ISS ESG Large Cap Industry Balanced. Within each pair are two siblings. One sibling is comprised of “qualifying” securities that meet the applicable ESG threshold. The other sibling is comprised of “remainder” securities that don’t meet that threshold. Taken together, they offer totally transparent, completely neutral view of ESG performance across the entire large cap market. It’s a clearly different—and clearly objective—approach to ESG investing.
CRSP has designed three sibling ESG indexes utilizing the independently-generated ESG Performance scores from ISS (ESG Corporate Rating | ISS).
Performance Over Time
Based on the backtested performance since January 2015, CRSP ISS ESG Prime Index, and other ESG-qualifying pairs, show outperformance over the benchmark, CRSP US Large Cap Index, and the corresponding non-ESG remainder indexes. However, the ESG-qualifying indexes performance has been impacted by the global crises in 2022, highlighting the importance of following both ESG and non-ESG complement indexes to better understand the risks and trade-offs of the ESG investment strategies.
The CRSP ISS ESG Indices (the "Indices") are published by CRSP. CRSP has contracted with Institutional Shareholder Services Inc. (“ISS”) to use certain data from ISS which forms part of the data included to maintain and calculate the Indices. The Indices are not owned, sponsored, or endorsed by ISS nor does ISS have any responsibility for the administration, management or marketing of the Indices. ISS does not make any representation, express or implied, regarding the advisability of investing in products that are based on the Indices or otherwise relying on the Indices for any purpose and ISS shall not have any liability for any errors, omissions, inaccuracy, incompleteness, delay, or interruption in the Indices, any data related thereto or any values thereof. All intellectual property rights in the data supplied by ISS which forms part of the data to maintain and calculate the Indices is and shall remain the intellectual property of ISS.