Climate Solutions

Align your portfolio to the low-carbon economy

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Regulatory developments and market guidance such as the EU Action Plan and TCFD have placed renewed urgency on the investment community to take a more active role to address global climate change. With Sustainalytics’ suite of Carbon Solutions, investors can identify, assess and manage climate-related investment risks and opportunities. Learn how our carbon research and services can provide a more holistic view of carbon risk.

Our Solutions

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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. 

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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

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Carbon Emissions Data

Our data looks at scope 1, 2 and 3 GHG emissions and intensity for over 10,000 companies. More than 100 different estimation models are used for non-reporting companies.

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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.

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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.

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Engagement Services

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

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Key Benefits

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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.

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Comprehensiveness

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

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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.

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Reliability

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

Use Cases

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Security Selection

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

 

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Portfolio Management

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

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Support Active Ownership Efforts

Engage with companies by using objective quantitative metrics.

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Advance Low-Carbon Investment Strategies

Manage your portfolio exposure to carbon-related risks.

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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.

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Why Sustainalytics?

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A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

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Award-Winning Research and Data

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

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End-to-End ESG Solutions

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

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25+ Years ESG Expertise

350+ ESG research analysts across our global offices.

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Largest Second-Party Opinion 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.

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Thematic Engagement

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

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ESG Risk Ratings

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

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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.  

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