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Morningstar Sustainability Ratings: The Impact

The updated Morningstar Sustainability Rating has led to a number of changes to funds' globe ratings, with some investments adding a surprising amount of ESG risk to fund portfolios

Elizabeth Stuart 12 December, 2019 | 1:25PM Hortense Bioy, CFA

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A revamped Morningstar Sustainability Rating has led to a number of changes to funds' ratings. 

Morningstar is now incorporating the Sustainalytics company ESG Risk Rating as the basis for the Morningstar Sustainability Rating for funds. The company ESG Risk Rating is an indicator of a company’s material ESG risks measured on the same scale across all economic sectors.

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About Author

Elizabeth Stuart  is associate analyst, Sustainability Research, Morningstar Europe

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