Impact Metrics Themes

Understand and report on the environmental and social impact of investors’ holdings and portfolios

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Morningstar Sustainalytics’ Impact Metrics is a set of company-level metrics that provide investors with useful measures of companies' environmental and social impact. The metrics are aligned to Sustainalytics' proprietary ESG Impact Framework and the UN Sustainable Development Goals (SDGs). These metrics enable investors to analyze and report on the environmental and social impact of their portfolio investments.

While realizing the SDGs would require exposure to a broad range of asset classes, Sustainalytics’ approach to impact is guided by our Impact Framework, which was specifically developed to assess the environmental and social impact of equity and bond portfolios.

This framework includes five environmental and social themes, Human Development, Resource Security, Climate Action, Healthy Ecosystems, Basic Needs, and one governance theme, Leadership and Collaboration.

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Spotlight on Sustainalytics’ five Impact Metrics Themes

This thought leadership campaign leverages our Impact Metrics research to extract insights from the environmental and social themes of our Impact Framework. These insights are outlined in five thematic reports.

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1

Human Development

The Human Development theme refers to enhancing human capabilities and promoting human progress. It includes measures that support education, improves equality and employment opportunities, and advance healthcare. This first report in this campaign focuses on gender equality.   

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Basic Needs

Sustainalytics’ Basic Needs Impact theme is concerned with addressing the basic needs of humans and focuses mainly on lower-income individuals. Basic needs include providing access to food, housing, essential healthcare concerning major and neglected diseases, clean water, and energy for underserved populations. It also addresses human safety, including safe workplaces.

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2

Resource Security

Resource Security refers to companies’ ability to impact natural resources, such as water, timber, metals, minerals, gases, and all types of manufactured materials, through efficient use and circular economies. Our Resource Security report dives deeper into companies’ water management.

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5

Healthy Ecosystem

Sustainalytics’ Healthy Ecosystems Impact theme is concerned with safeguarding of ecologically sound environments on land, air and water. While it does not include GHG emissions and water consumption as these are covered under other themes, it does look at the impact of pollution on the environments.

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Climate Action

Sustainalytics’ Climate Action Impact theme focuses on the global effort of companies to curb the Earth’s temperature rise and cope with unavoidable consequences. It includes measures that promote clean energy and climate change adaptation measures and limit GHG emissions.