From climate change to diversity to good governance practices, investors of all types are beginning to consider the outcomes of their investments. Increasingly, they are interested in aligning their investments with their interests related to environmental and social impacts, compelling asset managers and pension funds to improve portfolio reporting.
Sustainalytics’ Impact Metrics is a set of company-level metrics that help pension funds and asset managers use the globally recognized Sustainable Development Goals (SDGs) and other impact themes to analyze and report on the environmental and social impact of their portfolio investments.
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Impact Metrics Set Encompasses
119
Metrics
138
Sub-industries
Introducing Our Impact Framework
At the center of our Impact Metrics Solution is our Impact Framework, which includes six impact themes aligned with the UN SDGs that encompass the potential environmental and social impacts related to a company’s activities.
Climate
Action
The global effort to curb the Earth’s temperature rise and cope with unavoidable consequences.
1. Green Buildings
2. Renewable Energy
3. Low-Carbon Transportation
4. Low-Carbon Manufacturing
5. Low-Carbon Agriculture
6. Carbon Emissions Reduction
7. Climate Change Adaptation
7. Affordable and Clean Energy
9. Industry, Innovation and Infrastructure
11. Sustainable Cities and Communities
13. Climate Action
Healthy Ecosystems
Safeguarding of ecologically sound environments on land, air and water.
8. Sustainable Food Production
9. Sustainable Forestry
10. Sustainable Land and Marine Use
11. Clean Air, Land, and Water
12. Pollution Prevention and Reduction
2. Zero Hunger
3. Good Health and Well-Being
6. Clean Water and Sanitation
9. Industry, Innovation and Infrastructure
12. Responsible Consumption and Production
15. Life on Land
Resource Security
Positively impacting natural resources through efficient use and circular economies.
13. Sustainable Water Use
14. Circular Economy
15. Energy Efficient Products and Services
2. Zero Hunger
6. Clean Water and Sanitation
7. Affordable and Clean Energy
11. Sustainable Cities and Communiities
12. Responsible Consumption and Production
Basic
Needs
Addressing the basic needs of humans, including access to food, housing, healthcare, clean water, and energy.
16. Affordable Housing
17. Water, Sanitation, and Hygiene
18. Peace & Human Security
19. Quality Health
20. Food Security
21. Access to Energy
2. Zero Hunger
3. Good Health and Well-Being
6. Clean Water and Sanitation
7. Clean and Affordable Energy
11. Sustainable Cities and Communities
16. Peace, Justice and Strong Institutions
Human Development
Promoting human capabilities and progress through education, employment opportunities, and healthcare.
4. Quality Education
5. Gender Equality
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
4. Quality Education
5. Gender Equality
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
Fair Business Conduct
A baseline for social and environmental themes.
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
11. Sustainable Cities and Communities
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
16. Peace, Justice and Strong Institutions
17. Partnership for the Goals
Key Benefits
Combining Technology and Expertise
Our experts leverage technology to generate insights and analysis that are actionable and precise.
Transparency and Granularity
We place great emphasis on transparency ranging from reported and estimated sources, analyst commentaries, and applied criteria to arrive at our assessments.
Versatile Dataset
Our granular metrics dataset can be tailored and used across various sustainability, impact, or disclosure frameworks.
Portfolio Analytics and Reporting
Our solution offers insights into portfolio-level performance on our Impact Themes or the SDGs compared to a relevant benchmark.
Fund-Level Insights
Our solution offered through Morningstar platforms and tools, covers a large universe of funds and includes a 5-level look-through to capture the alignment of underlying securities in portfolios.
Use Cases
Identify and Select
- Identify companies with social or environmental impacts in line with investment objective
- Use metrics as an input into proprietary frameworks
- Build impact theme or SDG-specific investment solutions
Manage and Report
- Report on impact objectives and outcomes of applied ESG strategies for clients and stakeholders
- Monitor and report on portfolio, including through our Portfolio Analytics tool
- Evaluate Third-Party Fund and Mandates
Stewardship
- Engage with portfolio companies and external managers on impact performance.
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
800+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Climate Solutions
Identify and manage investment risks and opportunities with climate research, ratings and data for investors.
Learn More
Thematic Engagement
Engage on the most challenging ESG issues, from climate change to human capital.
Learn More
EU Sustainable Finance Action Plan Solutions
The EU Sustainable Finance Action Plan is arguably the most comprehensive and detailed set of regulations affecting the field of ESG investing.
Learn MoreMorningstar® Global Renewable Energy IndexSM
Exposure to equity investments that generate revenue from renewable energy and green transportation.
Morningstar® Societal Development IndexSM
Developed and emerging market companies that align with one or more of the UN SDGs.
Morningstar® Minority Empowerment IndexSM
Companies that are committed to racial and ethnic diversity as demonstrated by relevant programs and policies related to diversity, community development etc.
Morningstar® Global Market SustainabilitySM Index Family
Best-in-class equity index that features reduced ESG risk profile with low to moderate tracking error.
Related Insights and Resources
Why Impact Matters: Seven Essential Considerations for Investors
Today’s investors are facing increased scrutiny from stakeholders for greenwashing risk. ESG-related disclosure regulations are quickly advancing and more customers are seeking impact-focused products. This market environment demands heightened transparency and credibility, and investors need to know how Impact can help them rise to these challenges and meet their diverse sustainability goals.
Post-COP15 Outlook: Evolving Investor Responsibilities in Biodiversity
Awaiting COP15’s Global Biodiversity Framework negotiation outcomes, financial market participants could face new regulatory pressure sooner than expected to integrate biodiversity assessment into their investment, decision-making processes.
Danish Delegation Engages Sustainalytics’ Biodiversity Expert, Enabling Front Row Access to COP15 Negotiations
Finance Day within the U.N. Biodiversity Conference (COP15) is fast approaching, and Morningstar Sustainalytics’ team members will be in attendance, each focusing on different investor biodiversity considerations related to active ownership.
Leveraging Blockchain to Improve Supply Chain Management - A Case Study for Household and Personal Products Companies
With growing scrutiny from stakeholders—international regulators and regional governments, NGOs, the general public, investors, and financial institutions—companies accused of human rights violations and environmental damage in their supply chains face substantial risks.