The long run
All three ESG indices start from the Nifty 100 and use companies' environmental, social and governance scores to decide which stay in and how much each weighs; the Sector Leaders version, as its name says, keeps those that rank best within their sector. NSE's methodology documents set out the exclusions and scoring. Here is what the numbers show.
| 7 Jul 2016 | 6 Oct 2026 | Multiple | Per year | |
|---|---|---|---|---|
| Nifty 100 | 8,485.60 | 23,881.70 | 2.81x | 10.6% |
| NIFTY100 ESG | 1,544.54 | 4,699.75 | 3.04x | 11.5% |
| NIFTY100 Enhanced ESG | 1,565.90 | 4,730.50 | 3.02x | 11.4% |
| Nifty100 ESG Sector Leaders | 1,390.21 | 3,806.75 | 2.74x | 10.3% |
Price returns from NSE's closing values, without dividends. A caution on the data: for each ESG index we hold one reading on 7 July 2016 and then nothing until daily closes begin, on 28 March 2018 for the ESG and Enhanced ESG indices and 16 June 2020 for Sector Leaders. The figures above rest on that single starting reading. Measured from 28 March 2018 instead, where the daily record starts, the ESG index returned 11.3% a year, the Enhanced ESG 11.1% and the Nifty 100 10.1%.
Year by year
| Year | Nifty 100 | ESG | Enhanced ESG | ESG Sector Leaders |
|---|---|---|---|---|
| 2018 from 28 Mar | 6.0% | 8.1% | 7.6% | – |
| 2019 | 10.4% | 11.0% | 10.2% | – |
| 2020 | 14.9% | 21.6% | 21.4% | – |
| 2021 | 25.0% | 30.7% | 30.6% | 22.9% |
| 2022 | 3.6% | -4.2% | -4.1% | 1.0% |
| 2023 | 20.0% | 22.2% | 22.0% | 18.3% |
| 2024 | 11.8% | 11.7% | 11.7% | 11.2% |
| 2025 | 9.0% | 10.5% | 10.6% | 10.5% |
| 2026 to 6 Oct | -10.5% | -9.3% | -9.5% | -12.6% |
- The ESG index won five of seven full years, 2019 to 2025. It lost in 2022, by 7.9 points, and in 2024, by 0.1.
- Most of the lead came in two years. It was 6.7 points ahead in 2020 and 5.7 ahead in 2021, then gave back 7.9 in 2022.
- ESG and Enhanced ESG are near twins. Their returns were within 0.82 points of each other in every year shown.
- Sector Leaders has gone the other way. It beat the Nifty 100 in only one of its five full years (2025), and from 16 June 2020 it rose 38.7% to the end of that year against the Nifty 100's 39.5%.
Over shorter windows
| To 6 Oct 2026, a year | Nifty 100 | ESG | Enhanced ESG | Sector Leaders |
|---|---|---|---|---|
| From 16 Jun 2020 | 14.6% | 15.1% | 15.1% | 13.2% |
| 5 years | 5.9% | 5.5% | 5.4% | 4.9% |
| 3 years | 6.8% | 7.9% | 7.8% | 5.8% |
| 1 year | -7.2% | -5.5% | -5.6% | -9.1% |
The window decides the verdict. Over five years all three ESG indices trail the Nifty 100, because 2022 sits inside it; over three years and over one, the two broad ESG indices lead.
Falls and valuation
From 16 June 2020, the stretch all four have daily data for, the largest fall from a high was 20.5% for the ESG index, 20.4% for Enhanced ESG, 18.4% for Sector Leaders and 17.6% for the Nifty 100, all ending on 17 June 2022. Annualised volatility over the same stretch was almost identical: 14.4% for three of them, 14.1% for Sector Leaders. Today the ESG index is 10.7% below its record close of 5,260.75 (7 January 2026); the Nifty 100 is 12.4% below its own, set on 26 September 2024.
| 6 Oct 2026 | P/E | P/B | Dividend yield | Median P/E since Apr 2021 |
|---|---|---|---|---|
| Nifty 100 | 19.26 | 2.89 | 1.18% | 22.36 |
| NIFTY100 ESG | 19.97 | 3.24 | 1.27% | 24.89 |
| NIFTY100 Enhanced ESG | 19.95 | 3.25 | 1.28% | 24.93 |
| Nifty100 ESG Sector Leaders | 19.97 | 2.87 | 1.18% | 25.36 |
The ESG index's P/E is 1.04 times the Nifty 100's. Since April 2021 that ratio has had a median of 1.08, a low of 1.00 and a high of 1.25, so the premium is thinner than usual now. Both P/Es are near the bottom of their own range: the ESG index's has been lower than today's on 4 of 1,362 sessions, the Nifty 100's on 11.
What this does not tell you
Price returns leave out dividends. The two broad ESG indices yield slightly more than the Nifty 100, so the comparison understates them a little.
The gap between them is small most years. They draw on the same 100 companies, and outside 2020 to 2022 no yearly difference shown here reaches 2.2 points.
A score is not a verdict. These indices follow ESG scores; the returns say nothing about whether a higher-scoring company is a better one.
The early data is thin. Anything measured from 2016 rests on one reading; the daily record is eight and a half years long for two of the indices and six for Sector Leaders.
Where to go from here
The guide to ESG funds covers the funds built on these ideas, and factor investing and smart beta explains rule-based indices more broadly. Our post on whether smart-beta index funds are worth it looks at the cost side.
Frequently asked questions
Have ESG indices beaten the Nifty 100?
Mostly, by a small margin. From 7 July 2016 to 6 October 2026 the NIFTY100 ESG rose 11.5% a year in price and the NIFTY100 Enhanced ESG 11.4%, against 10.6% for the Nifty 100. The Nifty100 ESG Sector Leaders rose 10.3% a year, behind it. Over five years all three ESG indices trailed the Nifty 100.
In which years did the NIFTY100 ESG trail the Nifty 100?
In 2022 and 2024, of the seven full years from 2019 to 2025. 2022 was the big one: the ESG index fell 4.2% while the Nifty 100 rose 3.6%, a gap of 7.9 points. In 2024 the gap was 0.1 point.
Are ESG indices more expensive than the Nifty 100?
Slightly. On 6 October 2026 the NIFTY100 ESG traded at 19.97 times earnings and 3.24 times book, against 19.26 and 2.89 for the Nifty 100, a P/E ratio of 1.04. Since April 2021 that ratio has had a median of 1.08. The ESG index's own P/E has been lower than today's on only 4 of 1,362 sessions.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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