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Index funds have gained significant popularity among investors in recent years. These funds aim to replicate the performance of a specific market index, such as the S&P 500 or the FTSE 100. By investing in a diversified portfolio that mirrors the index, investors can gain exposure to a broad range of companies and industries.

Index funds offer several advantages, including low fees, broad market exposure, and simplicity. They are often considered a passive investment strategy, as they do not require active management or frequent trading. Instead, index funds aim to match the performance of the underlying index over the long term.

However, as the global economy faces the challenges of climate change, investors are increasingly concerned about the impact of environmental factors on the performance of index funds.