Issuer Gateway Knowledge Hub

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ESG Risk Rating Score Change Log

Tracks Overall Score Changes and Triggers

December 2023


Morningstar Sustainalytics' Score Change Log will help companies understand when their ESG Risk Rating overall score has changed and what research process triggered it.

The log tracks changes to the following, dated from January 1, 2023:

  • Overall Risk Rating Score
  • Overall Risk Rating Category
  • Subindustry
  • Risk Rating Framework: Comprehensive or Core

 The log’s key features include the following: 

  • Publication Date
  • Value after Change
  • Value before Change
  • Change in Score
  • Change Trigger: For details, see definitions below. 


Change Trigger and Definition Details

Full Update

Typically, the annual research process triggers a full research update process. However, changes to subindustry, framework or M&A activity can also trigger a full update.  


A Full Update includes:  
  • An assessment of each management indicator.  
  • Any update of data due to a change in subindustry. 

  • A review and update of each Event:

    • Updates to Subindustry exposure scores
    • Updates to Exposure Beta scores 

Event Update

 

Changes at the Event category level will impact the overall ESG Risk Rating score.

 


The Event Update includes:  
  • A new Event or an update of an existing Event.  

Partial Update

 

The partial update involves a limited number of data points.

 


The Partial Update may include:  
  • An update of single datapoints and assessments based on Issuer feedback. 
  • An update of one set of data. For example, carbon metrics.  
  • An update of a set of data based on estimation models.  
  • An update of data due to a corporate M&A activity.


Methodology Update

An internal process whereby Morningstar Sustainalytics updates the ESG Risk Ratings methodological architecture, leading to changes in the rating/assessment of a company.





A Methodology Update may include:  
  • Structural changes to the ratings model, such as changes in calculations, or the addition/removal of structural model components.
  • Changes in the set-up of structural model components 

 

Sample Score Change Log

Note: the chart will only display if the company has at least two score changes within the past 12 months. 

 

 

Frequently Asked Questions

Access the Log via the Issuer Gateway:

1. Viewable within the html page. Go to the bottom of the Research/ESG Risk Rating page. 

2. Available within the ESG Risk Rating PDF Report. The page is located between the Momentum details section and the Material ESG Issues page. 

Yes, you can filter details according to the following triggers: Full Update, Partial Update, Event Update, or Methodology Update. 
The Score Change data available within the Issuer Gateway is updated in real time. 
These companies were added recently to the Morningstar Sustainalytics ratings universe and hence would not have a log that covers 12 months. However, the log will compile this data over time.

If the company has recently entered Morningstar Sustainalytics' ratings universe, the previous score will not be applicable, and we will show this as Null within the Score Change Log.

Additionally, if we change the ratings framework of a company - from Comprehensive to Core or Core to Comprehensive - the log will show the previous value as Null for the latest entry when the company is assessed under the new framework. 

Yes, when Morningstar Sustainalytics undertakes a full update of a company's ESG Risk Rating, the analyst also reviews the subindustry classification. Any change will be included in the Log.

This is possible when there are various changes during the day, such as a full update and partial update due to changes in certain types of indicators such as carbon and other intensity metrics. The change triggers within the log also explain the reason for the score change. 

The Score Change Log data is ordered from newest to oldest. 

The Score Change Log does not include a timestamp for each event. However, the Score Change Log is sorted from newest to oldest.