Climate Solutions

Align your portfolio to the low-carbon economy

Climate Solutions

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

Risk analysis

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. 

Carbon solutions

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

Carbon research

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.

Fossil fuel

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.

Carbon assets

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.

Climate change

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

Scope

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.

comprehensiveness

Comprehensiveness

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

compatibility

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.

reliability

Reliability

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

Use Cases

investments

Security Selection

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

 

reports

Portfolio Management

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

engagement

Support Active Ownership Efforts

Engage with companies by using objective quantitative metrics.

investment solutions

Advance Low-Carbon Investment Strategies

Manage your portfolio exposure to carbon-related risks.

portfolio

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.

carbon risk ratings

Why Sustainalytics?

Market standard

A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

Award winning

Award-Winning Research and Data

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

End to end

End-to-End ESG Solutions

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

Expertise

25+ Years ESG Expertise

350+ ESG research analysts across our global offices.

Largest second party opinion provider

Largest Second-Party Opinion Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

Related Insights and Resources

Unwritten Risks – The True Costs of Mispriced Climate Change

Research shows that Property & Casualty insurance underwriters are not accurately pricing climate risks, and US government policy and program decisions are proving to be unsustainable. In our most recent blog, Justin Cheng talks about the resulting premium pricing corrections in the wake of intensifying extreme weather events. With this trend, a significant number of US homeowners are unable to obtain property insurance while taxpayers take on the increased cost of climate risk.

Is there a price to be paid for ESG Investing?

With a growing awareness around sustainability issues and accelerating regulatory developments in Europe, sustainable finance is one of the most significant talking points of our time. But what does sustainability investing mean for stakeholders and what are the resulting challenges? What’s more, what kind of impact does this have on a company’s mid to long-term strategy as well as its short-term profitability? By bringing together representatives from the regulatory side, the financial industry, the non-financial industry and an independent advisory firm, we aim to take a closer look at the consequences for the corporate world and answer a key question - is there a price to be paid for investing in ESG companies?

trees in forest
Why Deforestation Matters for Investors

EARTH DAY 2021: Why should investors care about deforestation and how can it can be taken into account within an investment portfolio?

trees in forest
Climate Risk Management: Investing Toward Net Zero

Watch our video to learn how applying Sustainalytics-driven carbon metrics to Morningstar indexes can facilitate a nuanced approach to portfolio decarbonization, with encouraging investment attributes.

Related Products

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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