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Climate Investment Resources

Climate change insights for investors

Climate Solutions

What are the Key Themes Driving Investor Climate Reporting?

In the context of the climate crisis, investors need insightful climate research, ratings, and data. Investors must balance the physical risks of climate change alongside the transition risks of moving to a net-zero economy.

In particular, regulatory guidance like the Task Force on Climate-related Financial Disclosures (TCFD) has placed urgency on the investment community to take a more active role to address global climate change. The TCFD framework is becoming increasingly important as it is shifting from a voluntary approach to being the main global regulatory response to climate risk, with many regions now mandating it for compulsory climate reporting.

Featured Content

Managing Risks for a Changing Climate

eBook | Managing Risks for a Changing Climate: A Guide for Institutional Investors

Is your organization planning on or has committed to aligning portfolios to a net-zero pathway and must report on decarbonization efforts? Read our latest ebook for insights into the investment and portfolio risks related to physical climate hazards and the transition to a low carbon economy.  

Climate Content

ESG in Conversation: When It Comes to Sustainable Investing, It's A Material World

This episode of ESG in Conversation explores ESG materiality and what a shift in political agendas globally could mean for the state of sustainability-related regulations.

Navigating Material Climate Risks in the Global Equities Market

Navigating Material Climate Risks in the Global Equities Market

This report evaluates companies on the Morningstar Global Large-Mid Cap Equities Index and how they are misaligned to net zero targets. It also identifies industry challenges regarding emissions reporting and their solutions.

Material Matters: The Role of ESG Materiality in Sustainable Investment Strategies

In this article we define ESG materiality and highlight what investors need to know when considering the materiality of ESG issues in their investment portfolios.

The SEC’s New Rules on Climate

This episode of ESG in Conversation dives into the SEC’s new climate disclosure rules and what they mean for companies and investors.


Value at Risk: Quantifying the Impacts of a Low-Carbon Transition

As part of the continued enhancements to our research and data solutions, Morningstar Sustainalytics recently introduced Low Carbon Transition Value at Risk (LCT-VaR) data as part of its Low Carbon Transition Ratings.

Six Best Practices for the Low Carbon Transition | Morningstar Sustainalytics

Six Best Practices Followed by Industries Leading the Low Carbon Transition

In this article, we take a closer look at the leading industries under the Morningstar Sustainalytics Low Carbon Transition Rating (LCTR) and examine the best practices that have allowed them to emerge as leaders in managing their climate risk.

Navigating the EU Regulation on Deforestation-Free Products (EUDR): 5 Key Questions Answered About Company Readiness and Investor Risk

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 LCTR Managing Climate Risk | Morningstar Sustainalytics

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.

Our Solutions

Morningstar Sustainalytics’ Climate Solutions enable investors to effectively evaluate both transition and physical climate risks. Our products can help investors build comprehensive climate investment strategies, fulfill disclosure requirements, advance engagement activities, and evaluate climate risks. 


Physical Climate Risk Metrics

Assess and disclose the direct and indirect physical climate risks of climate change related exposure.

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Low Carbon Transition Ratings

Receive a forward-looking assessment of a company’s current alignment to a net-zero pathway.

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Carbon Emissions Data

Evaluate and analyze companies’ GHG emissions across scope 1, 2, and 3 emissions.

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Additional Resources

Net-Zero Transition

Sample Report: TCFD module

A TCFD module is included in our Low Carbon Transition Ratings to assess and track the comprehensiveness of issuer disclosure.

Brochure: Navigating the Task Force on Climate-Related Financial Disclosures

To help investors navigate the scope of the TCFD recommendations, Morningstar Sustainalytics offers a robust set of Climate Solutions.

Low Carbon Transition Ratings from Morningstar Sustainalytics

In the context of the climate crisis, investors need robust research, data, and tools to identify and manage the climate transition-related risks and opportunities of their portfolio companies. Morningstar Sustainalytics’ Climate Solutions team created the Low Carbon Transition Ratings (LCTR), a new flagship ratings product, to help investors do just that.

Low Carbon Transition Ratings Brochure

Download the brochure to learn how you can better assess the alignment of your portfolio to a low carbon economy.

Low Carbon Transition Ratings Methodology

Leveraging our Low Carbon Transition Ratings, investors can respond to regulatory initiatives, implement net-zero strategies, fulfill client net-zero mandates and obtain transparency into company actions by integrating climate research into their investment decision-making processes.

Low Carbon Transition Ratings Sample Report

Sustainalytics’ Low Carbon Transition Ratings are designed to help investors align their portfolios to a net-zero pathway by creating visibility into the expected emissions exposure and management preparedness of issuers.

Physical Climate Risks and Carbon Emissions

Carbon Emissions Data Brochure

Morningstar Sustainalytics’ Carbon Emissions Data is designed to provide investors with powerful insights to assess and analyze companies’ carbon emissions.

Carbon Emissions Data Portfolio Report

The Carbon Emissions Portfolio Report includes analysis of a portfolio’s Scope 1 & 2 carbon intensity, Scope 1, 2 & 3 carbon intensity, and a carbon footprint analysis.

Brochure | Physical Climate Risk Metrics

As climate change challenges the modern investment landscape, evolving marketplace expectations will require investors to disclose both transition and physical climate risks associated with their investments.  To help investors better understand their exposure to physical climate risks, Sustainalytics, in collaboration with XDI, an award-winning global leader in physical climate risk analysis, are introducing Physical Climate Risk Metrics (PCRM) as Sustainalytics’ first Physical Climate Risk offering to align with evolving reporting needs. XDI's analysis supports decision-making in finance, business, and governments worldwide, with detailed, investment-ready information for physical climate risk.