Morningstar Sustainalytics

Around the world, ESG-related regulations are becoming more prevalent as governments demand transparency from both investors and companies about progress on their sustainability commitments. In this landscape, it's essential to evaluate how prepared organizations are to meet these new standards. Join the conversation and let us know your level of confidence in meeting these regulatory challenges. #ESG #SustainableInvesting #Regulations #InstitutionalInvestors #AssetManagement

One of the most common ways that companies might mislead investors about their exposure to climate risks is by downplaying the severity of the risks that they face. Or by omitting specific details about those risks. https://bit.ly/3VAY5UB Morningstar Sustainalytics' Alicia White explains how physical climate risk metrics can help investors assess the true climate risks companies face and how they can impact the bottom line. #ESG #ClimateRisk #SustainableInvesting

🌟 We are delighted to be hosting an exclusive event during the 2024 London Climate Action Week tomorrow, Thursday 27th June 🌟 👨💻 Our CEO Aleksi Tukiainen will open the event with a keynote and an exclusive preview of the latest product release of the ClimateAligned platform. 🌿 We are excited to be joined by industry leaders Ali Adeli, Begum Gursoy, David Carlin, and Georgina Jarratt for a discussion on the next stage of sustainable finance, including #AI and other digital technologies as accelerants and tools to build scale - moderated by our own Krista Tukiainen 🥂 We'll round out the evening with a rooftop networking reception overlooking Exchange Square! To be added to the waitlist, contact us at info@climatealigned.co or message Friederike Tietz. We look forward to seeing everyone there! #LondonClimateActionWeek #LCAW #LCAW2024 #ClimateAligned #sustainablefinance #greenfinance #sustainableinvesting #climatefintech

What could a changing political landscape in the EU mean for sustainability-focused regulations? We dive into this question and more in the latest episode of ESG in Conversation. https://bit.ly/4cALSpz Listen to learn about: ➡️ The state of the #ESG and #climate regulatory landscape ➡️ Asset owners’ thoughts on the materiality of ESG issues ➡️ Updates to Morningstar Sustainalytics' corporate governance framework #ESG #materiality

While there has been a surge in the availability of products and investment opportunities focusing on environmental considerations such as renewable energy, clean technology, and carbon footprint reduction, there are fewer options for investors looking to incorporate social factors. The Morningstar Developed Markets LGBTQ+ Leaders Index represents a portfolio of companies diversified across economic sector and geography and rigorously screened for DEI inclusion, which can help investors achieve both social and investment goals. But how can inclusion be measured at the corporate level? ✅ Stated efforts and commitments ✅ Actively communicating support for DEI ✅ Backing global efforts against discrimination ✅ Encouraging employee resource groups ✅ Diversity and/or allyship among executive ranks and within corporate leadership Learn more by reading our in-depth paper here: https://bit.ly/4bzrtR7 #DEI #SustainableInvesting #LGBTQ+

According to Morningstar Sustainalytics’ emissions data published in 2023, on average, scope 3 emissions make up 60% of a company’s total carbon footprint. https://bit.ly/4c6xKEX However, because they’re the result of activities and assets not directly owned or controlled by a company, they are also the most difficult to track and report on. As a result, they often get left out of corporate sustainability reports. But when companies only address their scope 1 and scope 2 emissions, they’re leaving out a big piece of the puzzle. Morningstar Sustainalytics' Alicia White explains how data on how a company is managing its scope 3 emissions can help investors avoid greenwashing by providing a more comprehensive and transparent picture of the company’s environmental impact and performance. #ESG #ClimateData #Scope3Emissions #SustainableInvesting

⚠️Last chance to register for our webinar: Single, Double, or Dynamic? Approaches to ESG Materiality.⚠️ https://bit.ly/3xiuFT2 Only two days left to register for our upcoming webinar "Single, Double, or Dynamic? Approaches to ESG Materiality" 🗓️ Date: June 27, 2024 ⏰ Time: 9 am CDT/4 pm CEST Join us for a thought-provoking roundtable where our panelists will discuss: ➡️ The benefits and differences between these approaches ➡️ Why an investor might want two sets of data for their ESG strategy ➡️ How emerging regulations, like CSRD, and increased disclosure may impact strategy Register now and don't miss out! https://bit.ly/3xiuFT2

As automakers produce more cars, they become more dependent on various raw materials, including rare earth elements (REEs), platinum group metals (PGMs) and chromium. https://bit.ly/4cua5Oj Increased demand for these materials exposes companies in the industry to risks from supply disruptions and from the environmental impacts related to their use. In her latest article, Alina Olaru, ESG Research Lead Analyst for Industrials and Transportation, discusses these challenges in detail. Key takeaways include: 🗺️REEs and PGMs are highly concentrated according to geography, which increases ESG risks due to automobile companies’ reliance on them. In 2022, China accounted for approximately 70% of total REE mine production worldwide. 🔁A best practice for eco-design that automakers can implement is LCAs, which evaluate the environmental impacts of a vehicle across its lifespan. Morningstar Sustainalytics research shows that such practices are adopted mostly by large-cap companies in the industry, which suggests that the largest automakers have the necessary resources to invest in establishing strong management programs. Read the full article here. https://bit.ly/4cua5Oj #cars #carmakers #automakers #ESG #rawmaterials

Today’s investors must deal with the new material world – where tightening regulations and reporting standards require market participants to demonstrate how they track, disclose and manage ESG issues. Our latest report by lead author Martin Vezér, PhD is on Navigating Material Climate Risks in the Global Equities Market. The report evaluates the alignment of companies listed on the Morningstar Global Large-Mid Cap Equities Index with their transition toward a low-carbon economy. 📊The analysis spans more than 3,300 public companies, representing 94% of the market capitalization of the index, providing a view of a broad cross-section of the market. 📉Among the covered entities, 19% are moderately misaligned to net zero, while 38%, 23% and 15% are significantly, highly and severely misaligned, respectively. 💸We note that physical climate risks vary widely, though companies in most sectors face related losses of between 1% and 5% of their operating cash flow. Read the report here: https://bit.ly/3RAQlQZ #ESG #climate #equitiesmarket #assetmanagement #morningstarindexes #esgrisk

In March 2024, construction across Belagavi City in Karnataka, India ground to a halt. The problem? A severe water shortage. https://bit.ly/4cxf290 It’s an increasingly familiar challenge for companies in the construction value chain, which rely heavily on water resources. As climate change intensifies, so do droughts and dry spells across the world, and construction companies are particularly vulnerable to such scarcity issues. Discover how the construction industry is navigating these complexities in the latest article from Laura Coll, Analyst, ESG Research at Morningstar Sustainalytics. #WaterStewardship #Sustainability #ESG #ConstructionIndustry #ClimateChange