ESG retirement investments outperform conventional funds, secure larger pensions.
The article shows that investing in sustainable funds for retirement can be just as profitable as traditional funds. By comparing the performance of ESG funds with regular funds from 1994 to 2020, they found no significant difference in returns. In a UK retirement plan simulation, using an index fund with ESG screening resulted in a 10.4% larger pension compared to using the index fund alone. This approach also outperformed actively managed funds with a sustainable focus by 20.2%. In conclusion, investing in ESG-screened funds for long-term retirement planning can help achieve both financial security and sustainability goals.