ABSTRACT

Responsible investment has followed the example of the mainstream financial community by developing an increasing number and variety of indexes in recent years. Like traditional financial indexes, responsible investment (RI) indexes can serve as definitions of markets available for investment, as the basis for investment products and as benchmarks for the measurement of investment performance. What are the different approaches to the creation of the RI indexes now being used? How are RI indexes different from, or similar to, conventional financial indexes? In what sense are they ‘responsible’? What is their future likely to be? These are some of the questions this chapter seeks to answer.