What's the Difference Between Morningstar ESG Ratings?

What's the difference between the Morningstar ESG Commitment Level and the Morningstar Sustainability Rating, and how can investors use the two to choose funds? 

Elizabeth Stuart 7 December, 2020 | 9:49AM
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ESG Ratings

Sustainable investing is on the rise, and hundreds of funds with an ESG flavour have been launched in recent years to meet investor demand. An increasing number of asset managers are now claiming to incorporate environmental, social, and governance factors into their investment decisions.

This leaves investors with a lot of work to do to differentiate between funds that truly focus on ESG and those using ESG considerations in a limited way. Morningstar has developed a wide array of ratings, data, and analytics to help sustainability-aware investors make better investment decisions.

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About Author

Elizabeth Stuart  is associate analyst, Sustainability Research, Morningstar Europe

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