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

Storm surge hits building near the shore

Capturing the Direct and Indirect Risks of Physical Climate Change in Investment Portfolios

Investors face a unique set of challenges in assessing the physical climate risks affecting their portfolio companies. In this blog discover the direct and indirect physical climate risks impacting companies and their supply chains.

Pink clouds in the sky at sunset

A New Tool at the Table: Understanding Low Carbon Transition Risk By Industry and How Companies Are Managing It

Discover how leading companies are managing their low carbon transition risks. Using data from the Low Carbon Transition Ratings, we identify the industries with a large portion of the companies with strong management of transition issues and examine the factors contributing to their strong management scores.

Physical Climate Risk Metrics On Demand Webinars

On-Demand Webinar: Physical Climate Risk Metrics

Watch our on-demand webinar recordings to learn more about enhancements to Physical Climate Risk Metrics.

Webinar Replay: The Net Zero Transition - Building Climate-Aware Investment Strategies

Discover how investors can more effectively respond to climate regulatory initiatives, advance engagement activities and support net zero strategies.


A Closer Look at How and Where Net-Zero Commitments Are Falling Short

Read about the methods investors can use to measure portfolio alignment to net-zero and the importance of not only assessing climate transition plans, but also their governance structure and implementation.

Smoke stacks at sunset

Carbon Emissions Data for Investors: Closing the Reporting Gap and Future-Proofing Estimations

Despite improvements in the quality and quantity of carbon emissions reporting from companies, significant gaps remain. Discover the current state of emissions disclosures, learn the advantages and disadvantages of widely used estimation models, and discover the approach underpinning Sustainalytics' Carbon Emissions Data product.

scope 3 emissions shareholder voting

Investors Seek Meaningful Scope 3 Emissions Targets to Evaluate Climate Transition Plans

Climate concerns continued to dominate proxy voting in the 2022 proxy season. With more clarity on sectoral commitments required to achieve the global net zero goal, shareholders’ requests have become noticeably more specific. A larger number of resolutions asked companies to adopt and report on emissions reduction targets and transition plans that reference the latest forward-looking guidance.

2023 Outlook ESG

In 2023, Expect Europe’s Asset Managers to Gain Ground on ESG Regulations, Morningstar Sustainalytics President Says

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.