Identify, Assess and Manage Climate-Related Risks and Opportunities
Regulatory developments and market guidance such as the Task Force on Climate-related Financial Disclosures (TCFD) and EU Action Plan have placed urgency on the investment community to take a more active role to address global climate change. With Sustainalytics’ Low Carbon Transition Ratings, Physical Climate Risk Metrics, and Carbon Emissions Data, investors can identify, assess and manage climate-related investment risks and opportunities.
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-5-key-questions-answered-about-company-readiness-and-investor-risk.tmb-thumbnl_rc.jpg?Culture=en&sfvrsn=ee2857a6_2 "Navigating the EU Regulation on Deforestation-Free Products (EUDR): 5 Key Questions Answered About Company Readiness and Investor Risk")
Beyond 1.5 Degrees: What the LCTR Tells Us About Companies Managing Their Climate Risk
Sustainalytics’ Climate Solutions
Low Carbon Transition Ratings
Our comprehensive framework measures the degree to which a company’s projected greenhouse gas (GHG) emissions differ from a net-zero pathway between now and the year 2050. The ratings measure an issuer's exposure from their expected emissions, while also accounting for management actions. Investors are enabled to respond to regulatory initiatives, implement net-zero strategies, and fulfill client net-zero mandates.
Physical Climate Risk Metrics
The metrics are designed to help investors understand their direct and indirect exposure to physical climate change and the potential financial impacts to their portfolio companies. The direct and indirect exposure metrics are calculated as separate signals that align with TCFD recommendations and roll-up to a single overall exposure signal.
Carbon Emissions Data
Designed to provide investors with powerful insights to assess and analyze companies’ GHG emissions, our Carbon Emissions Data is backed by best-in-class multi-factor regression models to estimate greenhouse gas emissions. With our sophisticated estimation models and high-quality data, investors can respond to regulatory requirements and initiatives such as the EU Action Plan, TCFD, and PRI.
Learn MoreAdditional Climate Services
Carbon Solutions Involvement
Sustainalytics examines company involvement in carbon solutions, including renewable energy and low carbon alternatives, such as green transportation, green real estate and energy efficiency.
Fossil Fuel Involvement
We assess different types of company involvement in fossil fuels, including thermal coal, oil and gas, oil sands, shale energy, deep water production and Arctic offshore exploration.
Stranded Carbon Assets Research
We evaluate the risk of oil and gas assets becoming non-commercial due to the transition to a low carbon economy. Exposure includes life-cycle carbon intensity of production and proven reserves as well as involvement in high-cost projects.
Net Zero Transition Engagement Programme
Our Net Zero Transition Engagement Programme supports institutional investors to advance their net zero stewardship ambitions by establishing an effective climate-focused dialogue with high-emitting companies on their journey to net zero carbon emissions.
Learn MoreClimate Resource Center
Stay on top of climate investing trends, climate research insights and learn about the key themes driving investor climate disclosure with our newly launched Climate Resources page.
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Related Insights and Resources
Navigating the EU Regulation on Deforestation-Free Products: 5 Key EUDR Questions Answered About Company Readiness and Investor Risk
The EUDR comes into effect in December 2024, marking an important step in tackling deforestation. In this article, we answer five key questions who the EUDR applies to, how companies are meeting the requirements, and the risks non-compliance poses to both companies and investors
Beyond 1.5 Degrees: What the LCTR Tells Us About Companies Managing Their Climate Risk
The LCTR rating of over 8,000 companies shows that global temperatures will rise 3.1 degrees Celsius over pre-industrial averages. This article looks at the overall performance of these companies and the industries that are leading on climate.
The SEC’s Climate Disclosure Rule: A Step in the Right Direction
The U.S. Securities and Exchange Commission (SEC) recently published the final version of its long-awaited Climate Disclosure Rule. The final rule differs significantly from its original draft and further departs from other standards about to be implemented around the globe.
Double Trouble: The Rise of Greenwashing and Climate Litigation for Banks
The fight against greenwashing is being taken to the courts. An analysis of Morningstar Sustainalytics data shows a 12-fold rise in climate-related litigation, including greenwashing claims, against banks over the past three years.