Best ESG & Sustainability Indexes to Watch for Investors

As the world shifts toward responsible investing, the need to track companies based on environmental, social, and governance (ESG) performance has never been more critical. Investors are no longer just looking for profitable opportunities—they’re seeking ethical, forward-thinking businesses that prioritize long-term value. That’s where a Sustainability Index comes in.

A Sustainability Index is a curated benchmark that assesses companies not just on financial performance but on how well they manage ESG risks and opportunities. These indexes help investors pinpoint which companies are serious about reducing their carbon footprint, ensuring ethical labor practices, and maintaining robust corporate governance. More than just a trend, this is part of a growing movement toward impact investing, where financial returns align with global responsibility.

At Friend of The Sea, we believe that sustainable investment choices not only protect our environment and communities but also foster better long-term performance. Whether you’re a retail investor, institutional buyer, or simply curious about greener portfolio options, understanding the right indexes to follow can be a game-changer. In this article, we explore the best ESG and Sustainability Indexes that deserve your attention in 2025 and beyond.

1. MSCI ESG Indexes

The MSCI ESG Indexes are among the most widely respected benchmarks in the sustainable investment world. MSCI evaluates thousands of companies across industries and countries, scoring them based on how they handle ESG-related risks and opportunities. These indexes include everything from broad-market ESG leaders to thematic portfolios focused on specific issues like clean energy or diversity.

What makes MSCI stand out is its depth of analysis and global reach. It offers different index types, including:

• MSCI World ESG Leaders Index

• MSCI ACWI ESG Index

• MSCI Emerging Markets ESG Leaders Index

For investors seeking global diversification without sacrificing sustainability, MSCI offers a data-driven, transparent approach. It’s a solid starting point for building or adjusting a responsible investment strategy.

2. Dow Jones Sustainability Index (DJSI)

The Dow Jones Sustainability Index, or DJSI, has been setting the bar since the late 1990s. Created by S&P Global in collaboration with RobecoSAM, it assesses companies based on long-term economic, environmental, and social criteria.

What sets DJSI apart is its strict selection process. Companies that want to be included must answer a detailed Corporate Sustainability Assessment (CSA), which digs into everything from water use and climate strategy to ethical business practices and cybersecurity.

Key features:

• Updated annually

• Highly selective

• Tracks global, regional, and industry-specific leaders

For serious ESG-focused investors, following the DJSI offers a clear lens into which companies are walking the sustainability talk.

3. FTSE4Good Index Series

The FTSE4Good Index Series, launched by the London Stock Exchange’s FTSE Russell, is designed to measure the performance of companies that meet globally recognized ESG standards.

These indexes are frequently used by fund managers and institutional investors to screen ESG-compliant companies. The inclusion criteria are regularly updated and include:

• Environmental management and climate change mitigation

• Human rights and labor standards

• Anti-corruption practices

One advantage of the FTSE4Good is its clear, rule-based methodology. It promotes transparency and allows investors to align their portfolios with the UN Sustainable Development Goals (SDGs).

4. S&P 500 ESG Index

For investors who want ESG alignment without straying too far from the traditional S&P 500, this index offers a compelling solution. The S&P 500 ESG Index excludes companies involved in controversial activities like tobacco, firearms, or thermal coal, and focuses on ESG leaders within each sector.

What makes it attractive is its familiarity—investors still get exposure to blue-chip U.S. stocks but with a cleaner conscience. It’s particularly useful for passive investors and fund managers looking for ESG integration without drastic changes to their portfolios.

5. Bloomberg Gender-Equality Index

While many ESG indexes take a broad view, the Bloomberg Gender-Equality Index (GEI) zeroes in on one critical aspect: gender diversity. It tracks public companies committed to transparency in gender reporting and advancing women in the workplace.

Metrics include:

• Leadership & talent pipeline

• Equal pay & gender pay parity

• Inclusive culture

• Sexual harassment policies

Investors increasingly view gender equality as a driver of business resilience and innovation. The GEI provides a unique tool for those who want to support gender-forward companies.

6. Refinitiv ESG Indexes

Refinitiv, formerly part of Thomson Reuters, offers a robust suite of ESG indexes powered by deep data analytics. Their Refinitiv ESG Scores are derived from over 400 ESG metrics, making their indexes among the most data-rich.

Key highlights:

• Coverage of over 9,000 companies worldwide

• Industry-specific benchmarks

• Transparent scoring methodology

These indexes are particularly popular among institutions that need highly granular ESG data for risk management, regulatory compliance, and impact reporting.

7. STOXX Global ESG Leaders Index

The STOXX Global ESG Leaders Index is a well-balanced benchmark that includes leading companies from developed markets based on ESG criteria. It combines three separate sub-indexes: environmental, social, and governance.

This modular approach allows investors to prioritize specific values:

• Want to reduce your carbon footprint? Focus on the environmental sub-index.

• Interested in human rights and labor policies? Go for the social one.

STOXX’s flexibility makes it ideal for custom ESG portfolios.

Why These Indexes Matter for Investors

In today’s market, performance is no longer measured solely by financial gains. Investors now care about how profits are made. By tracking companies through a trusted Sustainability Index, investors gain:

In short, ESG and sustainability indexes are more than just filters—they’re essential tools for future-ready investing.

Final Thoughts

Sustainable investing is no longer a niche—it’s becoming the standard. By using a Sustainability Index as a guide, investors can make more informed, ethical, and resilient choices. Whether you’re managing your own portfolio or advising others, keeping an eye on these indexes can provide a competitive and conscientious edge.

At Friend of the Sea, our mission is to promote sustainability in every form—from marine conservation to ethical consumer behavior. We encourage investors, companies, and individuals alike to make informed decisions that support both planet and profit. Explore our website for more on sustainability certifications, marine initiatives, and global conservation efforts.