Skip to main content

Impact Metrics

Analyze and report on the impact of your portfolio

null

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.

Impact Metrics Set Encompasses

180

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.

Environmental Themes

null

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

null

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

null

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

Social Themes

Governance Theme

null

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

null

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

null

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

7. Affordable and Clean Energy

9. Industry, Innovation and Infrastructure

11. Sustainable Cities and Communities

13. Climate Action

2. Zero Hunger

3. Good Health and Well-Being

6. Clean Water and Sanitation

9. Industry, Innovation and Infrastructure

12. Responsible Consumption and Production

14. Life Below Water

15. Life on Land

2. Zero Hunger

6. Clean Water and Sanitation

7. Affordable and Clean Energy

11. Sustainable Cities and Communities

12. Responsible Consumption and Production

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

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

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

11. Sustainable Cities and Communities

16. Peace, Justice and Strong Institutions

17. Partnership for the Goals

Key Benefits

null

Combining Technology and Expertise

Our experts leverage technology to generate insights and analysis that are actionable and precise.

null

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.

null

Versatile Dataset

Our granular metrics dataset can be tailored and used across various sustainability, impact, or disclosure frameworks.

null

Portfolio Analytics and Reporting

Our solution offers insights into portfolio-level performance on our Impact Themes or the SDGs compared to a relevant benchmark.

null

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

null

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
null

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
null

Stewardship

  • Engage with portfolio companies and external managers on impact performance.

Why Sustainalytics?

null

A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

null

Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

null

End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

null

30 Years of ESG Expertise

800+ ESG research analysts across our global offices.

null

A Leading SPO Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

null

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 More

Morningstar® 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.

Biodiversity COP15 Sustainalytics

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.

Sustainalytics at COP15 Biodiversity Conference

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.

blockchain supply chain

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.