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Investors Can Now Assess Company- and Overall Portfolio-Level Alignment to the EU Taxonomy

June 30, 2021, Amsterdam – Sustainalytics, a Morningstar Company and a leading global provider of ESG research, ratings, and data, today launched its EU Taxonomy Solution, which provides institutional investors with detailed insights into the environmentally sustainable activities of companies based on the EU Taxonomy framework. Sustainalytics’ EU Taxonomy Solution shows activity- and company-level alignment to the climate change mitigation objective of the Taxonomy. Investors can leverage the solution to fulfill the regulatory obligations, with the first reporting requirement set to take effect on January 1, 2022. Beyond reporting on their progress to address climate change, investors can use the solution in their investment activities, including for:

• Portfolio Management and Reporting: Manage and report on portfolio alignment to the EU Taxonomy.
• Company Screening: Perform portfolio screening to flag companies that do not comply with the ‘do no significant harm’ criteria or ‘minimum safeguards’ criteria.
• Product and Fund Construction: Apply Sustainalytics’ company alignment assessments to build sustainable products and portfolios.
• Engagement: Engage with companies that do not comply with the ‘do no significant harm’ criteria or ‘minimum safeguards’ criteria, or with firms that provide insufficient disclosure on economic activities.

Sustainalytics’ EU Taxonomy Solution contains new activity-based research, which evaluates the proportion of a company’s taxonomy-eligible revenues, capital expenditures and operational expenditures. The firm’s offering also builds on its industry leading ESG research products to assess company compliance with the ‘do no significant harm’ and ‘minimum safeguards’ criteria. Underpinned by comprehensive estimation approaches to supplement reported data, Sustainalytics’ EU Taxonomy Solution offers investors a holistic picture of their portfolios’ alignment to the Taxonomy.

“We are proud of the granularity our activity-based research offers to investors,” said Anne Schoemaker, Sustainalytics’ Associate Director of Product Strategy and Development. “While the EU Taxonomy regulatory requirements are still being defined, investors have a comprehensive solution to identify environmentally sustainable activities, construct credible sustainable investment products, and leverage it for a variety of other investment purposes. As the regulation evolves, Sustainalytics will further enhance its EU Taxonomy Solution to help investors on their compliance journey.”

Sustainalytics’ EU Taxonomy Solution is available through its online portal, Global Access, and through Morningstar’s and Sustainalytics’ Data Services. In addition to Sustainalytics’ EU Taxonomy Solution, the firm has an EU SFDR Principle Adverse Impact Data Solution and an EU Benchmarks Solution. To learn more about Sustainalytics’ EU Action Plan Solutions, please click here.

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About Sustainalytics

Sustainalytics, a Morningstar Company, is a leading ESG research, ratings and data firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 25 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. Sustainalytics also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices and capital projects. With 16 offices globally, Sustainalytics has more than 1,000 staff members, including more than 350 analysts with varied multidisciplinary expertise across more than 40 industry groups. For more information, visit Sustainalytics.