Skip to main content

Carbon Ratings & Research

Align your portfolio to the low-carbon economy

null

Our Carbon Risk Ratings have been discontinued for sale, please refer to our current solution:

As regulatory and industry pressures mount, investors are increasingly asking how to manage carbon risk in their portfolios. Our Carbon Risk Ratings assess a company's carbon risk, driven by the transition to a low-carbon economy. The Carbon offering has both risk and impact data to enable institutional investors to make informed investment decisions regarding climate change.

Our Solutions

null

Carbon Risk Ratings

Our Carbon Risk Ratings assess a company’s carbon risk, driven by the transition to a low-carbon economy.  The ratings are determined by evaluation of a company’s material exposure to and management of carbon issues. 

null

Carbon Solutions Involvement

Sustainalytics examines company involvement in carbon solutions, including renewable energy and low carbon alternatives, such as green transportation, green real estate and energy efficiency

null

Fossil Fuel Involvement

We assess different types of company involvement in fossil fuels, including thermal coal, oil and gas, oil sands, shale energy, deep water production and Arctic offshore exploration.

null

Stranded Carbon Assets Research

We evaluate the risk of oil and gas assets becoming non-commercial due to the transition to a low carbon economy. Exposure includes life-cycle carbon intensity of production and proven reserves as well as involvement in high-cost projects.

null

Engagement Services

Our Engagement Service offering also includes thematic engagements on climate change and voting recommendations on ESG and climate-related topics.

Learn More

Key Benefits

null

Breadth and Scope

Coverage includes reported and estimated data on Scope 1, 2 and 3 emissions as well as several types of involvement research, from shale energy to thermal coal.

null

Comprehensiveness

We provide end-to-end solutions to support security selection, product creation, portfolio management and active ownership

null

Simplicity & Compatibility

Our forward-looking Carbon Risk Ratings combine multiple, complex forms of carbon research in a simple, decision-useful metric to analyze and report on material carbon risk while allowing for best-in-class and cross-sector comparisons.

null

Reliability

Sustainalytics is a trusted research provider with well-established and robust research and quality control processes

Use Cases

null

Security Selection

Evaluate company-level carbon-related risks and opportunities for security selection purposes.

 

null

Portfolio Management

Assess the risks and opportunities within your portfolio and provide richer reporting insights.

null

Support Active Ownership Efforts

Engage with companies by using objective quantitative metrics.

null

Advance Low-Carbon Investment Strategies

Manage your portfolio exposure to carbon-related risks.

null

Develop New Investment Solutions

The Task Force on Climate-Related Financial Disclosures (TCFD)

Sustainalytics’ carbon research and services can be used to support several of the TCFD recommendations - with an emphasis on identifying and reporting on forward-looking transition risks, including carbon foot-printing and stranded assets. Several of our Active Ownership Services also focus on climate change and can be used to support the recommendation to engage with portfolio companies.

industry emitting carbon

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.

Impact Solutions

Measure, manage and report on the social and environmental impact of your portfolio.

Learn More

Thematic Engagement

Engage on the most challenging ESG issues, from climate change to human capital.

Learn More

ESG Risk Ratings

Take a coherent and consistent approach to assessing financially material ESG risks.

Learn More

Morningstar® Low Carbon RiskSM Index Family

Exposure to equity investments with Low Carbon Risk scores and limited exposure to fossil fuels.

Morningstar® Global Renewable Energy IndexSM

Exposure to equity investments that generate revenue from renewable energy and green transportation.

Morningstar® Sustainable Environment Index FamilySM

Diversified portfolio of firms with below average exposure to environmental risk.

Morningstar® Sustainability LeadersSM Index Family

Pure exposure to firms with the most exemplary ESG record.  

Related Insights and Resources

Double Trouble: The Rise of Greenwashing and Climate Litigation for Banks

The fight against greenwashing is being taken to the courts. An analysis of Morningstar Sustainalytics data shows a 12-fold rise in climate-related litigation, including greenwashing claims, against banks over the past three years.

Hamburger, fries and dipping sauces on a red background

Big Food’s Broken Promises: The Data Behind the Food Industry’s Rising Emissions

Using Low Carbon Transition Ratings data, we look at six major food companies and identify where they need to go beyond targets to meet their stated net-zero goals.

null

Mandatory Scope 3 Emissions Reporting in the U.S. and Canada: Most Companies Are Unprepared

Learn just how prepared U.S. and Canadian companies are for the proposed scope 3 emissions disclosure rules and how investors can leverage engagement to help companies meet the various challenges of GHG emissions reporting.

Policy Responses to Climate Change: The EU’s Fit for 55 Package and Its Implications for Companies and Investors

Governments need to be more decisive to slow global temperature rise. The EU’s Fit for 55 package, with its ambitious targets for energy-intensive sectors, is an example of the required policy response needed to decarbonize global economies.