Green versions of MSCI World index offer sustainable, potentially higher-yield investments

Investors seeking to align their portfolios with environmental values now have access to sustainable variations of the widely followed MSCI World index. These "green" alternatives provide a way to invest in global equities while excluding companies engaged in sectors considered harmful or controversial.

The exclusions typically target industries such as weapons manufacturing, tobacco production, and fossil fuel extraction – companies often referred to as "CO₂- Schleuder" or carbon emitters. This allows investors to maintain broad market exposure without supporting businesses that contribute to climate change or other ethical concerns.

Notably, some of these sustainable MSCI World variants have demonstrated strong performance, with certain options even yielding better returns than the original index. This suggests that ethical investing does not necessarily require a sacrifice in financial performance, challenging the notion that sustainability and profitability are mutually exclusive.