The EU Sustainable Finance Action Plan is arguably the most comprehensive and detailed set of regulations affecting the field of ESG investing. To comply with the various regulatory deadlines, investors not only need a comprehensive suite of high-quality ESG research and data products and services, but also a trusted partner. Our knowledgeable team can show you how our robust data coverage and award-winning research can help.
Contact us today to begin your EU Action Plan compliance journey.
Latest Insights
EU Taxonomy in Limbo - Reporting Alignment of Article 8 and 9 Funds in 2022
3 Reasons to Skill Up and Scale Up ESG Stewardship in 2022
5 Sustainability Themes to Expect in 2022
Our Solutions
Sustainalytics and Morningstar are helping investors at every step of their compliance journey. We are continuously enhancing our solutions as regulatory requirements are finalized, providing clients with a full solution at both the company and portfolio level well ahead of regulatory deadlines.
EU Taxonomy Solution

Regulation
The Taxonomy is a classification framework designed to determine whether an economic activity is environmentally sustainable. There are three main criteria that activities will be screened on to determine alignment with Taxonomy objectives:
1. Substantial Contribution
2. Do No Significant Harm
3. Minimum Safeguards

Solution
Our solution enables you to incorporate EU Taxonomy criteria in your investment decisions and report on your progress toward addressing climate change. We offer coverage on more than 10,500 companies and align our list of activities with the Climate Delegated Act. Sustainalytics’ EU Taxonomy Solution is underpinned by comprehensive estimation and proxy approaches to supplement reported data, providing investors with a more holistic picture of their portfolios’ alignment to the EU Taxonomy.
Sustainable Finance Disclosure Regulation

Regulation
The EU’s Sustainable Finance Disclosure Regulation (SFDR) introduces new rules for how investment managers need to incorporate and disclose sustainability risks and factors with an emphasis on the so-called “Principal Adverse Impact” (PAI) indicators.

Solution
To fully comply with all of the SFDR requirements will require a comprehensive set of ESG research solutions that enable investors to identify and manage both ESG risks and potential adverse sustainability impacts. Sustainalytics’ client advisory teams can advise you on finding a suitable mix of research solutions to meet your organization’s needs.
New SFDR Research Solutions
The following company and fund level data solutions were created specifically to support SFDR compliance requirements:

Company-level Data
- PAI Data Solution: Data packages with all of the mandatory corporate and sovereign PAIs, and a growing number of voluntary PAIs.
- Compliance with SFDR: Supported with our research such as Impact Metrics, Sustainable Products, Global Standards Screening, Controversies Research, ESG Risk Rating.

Fund-level Data
- Morningstar will collect and disseminate EU ESG Fund Type information, such as Article 8 & 9 flags, and key data points from SFDR compliant ESG prospectuses.
- Users of third-party funds, such as advisors and fund-of-funds, can utilise Morningstar’s market leading ‘Full Holdings’ database to look through funds to their underlying exposures. This gives the user PAI assessments on the underlying securities, thereby aligning with the regulation’s requirements for entity level disclosures to be calculated using security level data.
EU Benchmarks Regulation

Regulation
The EU Sustainable Finance Action Plan includes two amendments to regulation affecting sustainability benchmarks:
1. Climate Benchmarks: The regulation defines new minimum standards for two types of carbon benchmarks: the EU Climate Transition Benchmarks (EU CTB) and the EU Paris-aligned Benchmarks (EU PAB).
2. Disclosure Requirements: Sustainalytics offers three data packages for corporate, sovereign and climate benchmarks, consisting of around130 data points from 12 of our research products.

Coverage
Sustainalytics’ dataset covers approximately 12,500 companies and 172 countries.
Solution
Our dataset and reports can support investors in meeting the regulatory requirements of the EU Climate Transition Benchmarks, EU Paris-Aligned Benchmarks and sustainability-related disclosure requirements for benchmarks with ESG factors.
Sustainalytics can help index providers and benchmark administrators meet mandatory reporting and disclosure obligations while enabling them to screen companies on their eligibility for inclusion in EU Climate Benchmarks. In addition, Morningstar provides ESG Indexes for comparison purposes and benchmarking, as well as the reporting capabilities necessary to generate fund level reports.
Key Features And Benefits

High-Quality ESG Research Solutions
Our established, award-winning ESG research aligns well to regulatory criteria, creating a solid foundation to working towards full coverage

Trusted Partner
Built on 25+ years of ESG expertise, Sustainalytics’ client advisory team have unparalleled expertise in guiding clients to find ESG solutions tailored to their organization’s needs.

A coherent and consistent approach to ESG
Together with Morningstar, we can provide end-to-end solutions from raw data to managed portfolio and reporting solutions at company and fund level to suit your intended use case.

Strong commitment demonstrated by robust investment in capacity
With over 300 ESG analysts, Sustainalytics has one of the largest research teams in the industry. We have significantly expanded our capacity with more than 30 new analysts to focus on supplementing our established research by focusing on new research areas directly rated to the EU Action Plan.

Combined Regulatory and Product Knowledge
Sustainalytics is collaborating closely with Morningstar’s regulatory and product experts to bring a comprehensive solution to market.
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
500+ ESG research analysts across our global offices.

A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
EU Taxonomy in Limbo - Reporting Alignment of Article 8 and 9 Funds in 2022
For observers of the EU’s Sustainable Finance Strategy, 2022 kicked off with a crack and a bang as the European Commission went ahead with plans to include natural gas and nuclear-related activities as potentially sustainable under their ‘Green Taxonomy’. However, in midst of this furor, seemingly less attention has been paid to other components of the regulation that have quietly taken effect from the 1st of January 2022, presenting their own set of challenges.
3 Reasons to Skill Up and Scale Up ESG Stewardship in 2022
As our clients and the industry at large focus on proactively mitigating risk and capitalizing on this evolving landscape, stewardship will be a key lever for savvy investors—particularly those facing external pressure to divest. Here are the ESG themes we see influencing stewardship priorities this year.
5 Sustainability Themes to Expect in 2022
As we enter 2022, it struck me that VUCA--a concept that originated in the mid-1980s at the U.S. Army War College to describe the volatility, uncertainty, complexity, and ambiguity of the world after the Cold War—is still a useful framework to think of where we are now.
For Investors with Ambitions to Lead on Climate Action Post COP26
In the weeks following COP26, investors in the UK and worldwide face a myriad of upcoming climate-related regulations heading towards the implementation phase. In addition, major global coalitions such as the Glasgow Financial Alliance for Net Zero have sprung up to attempt to accelerate decarbonization via targeted investment.