ESG Risk Ratings
Morningstar Sustainalytics’ ESG Risk Ratings evaluate the extent to which environmental, social, and governance (ESG) factors may pose financial risk to a corporate issuer’s enterprise value. The rating’s primary output reflects the extent of an issuer’s unmanaged ESG risk across key issues, including climate change, human capital, business ethics, and corporate governance.
Historical Disclosure Tables
Controversy Ratings
Morningstar Sustainalytics’ Controversy
Ratings evaluate a corporate issuer’s involvement in media-reported
controversies that may present varying levels of financial risk and
societal impact. The rating’s primary output reflects the severity
of an issuer’s involvement in controversies across key environmental,
social, and governance topics.
Historical Disclosure Tables
Global Standards Screening
Morningstar Sustainalytics’ Global
Standards Screening (GSS) evaluates a corporate issuer’s
compliance with international norms and standards related to human
rights, labour rights, the environment and business ethics. The rating’s
primary output reflects an issuer’s compliance, non-compliance, or
watchlist status across 10 key principles.
Historical Disclosure Tables
Country Risk Rating
Morningstar Sustainalytics’ Country Risk
Ratings evaluate the extent to which environmental, social, and
governance (ESG) factors pose risks to a government issuer’s long-term
prosperity and economic development. The rating’s primary output
reflects the extent of an issuer’s ESG risk across three pillars of
sovereign wealth: natural and produced capital, human capital and
institutional capital.
Historical Disclosure Tables
Low Carbon Transition Ratings
Morningstar Sustainalytics’ Low Carbon Transition Ratings (LCTR) evaluate how a corporate issuer’s projected Greenhouse Gas Emissions (GHG) compares to its fair-share emissions budget. The rating’s primary output reflects the extent to which the issuer’s emissions trajectory is aligned with limiting global warming to 1.5°C above pre-industrial levels, in line with the Paris Agreement.
Historical Disclosure Tables
Carbon Risk Ratings
Morningstar Sustainalytics’ Carbon Risk Ratings evaluate the extent to which carbon emissions issues may pose financial risk to a corporate issuer’s enterprise value. The rating’s primary output reflects the extent of the issuer’s unmanaged carbon risk across its operations, products and services, and financing activities.
Historical Disclosure Tables
ESG Indicators Standards Overview
Morningstar Sustainalytics ESG Indicators evaluate companies on key environmental, social, and governance factors. Indicators can be classified in many ways but at the highest level, there are three areas assessed by the indicators: company management, company involvement in controversies, and deviations in exposure to ESG issues relative to peers.
Historical Disclosure Tables
Portfolio ESG Risk Ratings
Morningstar Sustainalytics' Portfolio ESG Risk Ratings evaluate the level of financially material environmental, social, and governance (ESG) risk embedded in an investment portfolio relative to a peer group of comparable funds. The rating's primary output reflects the extent to which a portfolio's corporate and sovereign holdings are exposed to ESG risks, based on Morningstar Sustainalytics' ESG Risk Ratings for corporate issuers and Country Risk Ratings for sovereign issuers.
Historical Disclosure Tables
Portfolio Low Carbon Transition Ratings
Morningstar Sustainalytics’ Portfolio Low Carbon Transition Ratings assess the degree to which the greenhouse gas (GHG) emissions of a portfolio’s corporate holdings are aligned with a science-based 1.5°C net-zero pathway. The rating's primary output is an Implied Temperature Rise expressed in degrees Celsius, reflecting the projected temperature outcome if all companies managed their emissions in the same way as those held in the portfolio, using underlying GHG emissions data of Morningstar Sustainalytics' Low Carbon Transition Ratings for corporate issuers.
Historical Disclosure Tables
Portfolio Carbon Risk Ratings
Morningstar Sustainalytics' Portfolio Carbon Risk Ratings measure the degree of unmanaged carbon-related financial risk embedded in an investment portfolio. The primary output is the Portfolio Carbon Risk Score, which reflects the extent to which a portfolio's corporate holdings are exposed to financially material carbon risks, based on Morningstar Sustainalytics' Carbon Risk Ratings for corporate issuers.
Historical Disclosure Tables
Portfolio Low Carbon Designation
Morningstar Sustainalytics' Portfolio Low Carbon Designation identifies funds with low carbon-related financial risk and limited exposure to fossil fuel revenues. The designation's primary output is a binary indicator based on two portfolio-level screens: whether a portfolio's Historical Carbon Risk Score falls below 10, and whether its Historical Fossil Fuel Percentage of Covered Portfolio Involved falls below 7%, each derived from Morningstar Sustainalytics' Carbon Risk Ratings and Product Involvement research for corporate issuers.
Historical Disclosure Tables