Morningstar Sustainalytics - Low Carbon Transition Ratings
Data category
- Environmental data
- Ratings
- Research data
The data offers solutions for:
- Environmental impact analysis and insight
- Investment decisions and portfolio insight
- Reporting: ISSB standards
- Reporting: Other Regulations
- Reporting: TCFD
- Temperature alignment
- Transition plan assessments
- Transition plan credibility assessments, portfolio company and borrower communications, thematic investing product creation
Who are the data users?
- Financial institutions
- Investors
Brief description of the data offering
Morningstar Sustainalytics’ Low Carbon Transition Ratings (LCTR) empower investors and financial institutions to allocate capital to companies taking genuine action to reach their low-carbon goals. The LCTR is an end-to-end solution combining granular issuer-level data, high-level directional metrics like Implied Temperature Rise (ITR), and sector-level insights for portfolio analysis and reporting. By looking beyond stated targets, the LCTR provides a multi-dimensional assessment of a company’s implemented policies, governance systems, and investment plans across its entire value chain.
Use LCTR analyses to establish forward-looking low carbon benchmarks for your portfolios, screen the investable universe based on exposure to or management of transition risks, and reconcile the array of 3rd party standards and requirements into a single, clear set of metrics and scores.
Where and how do you source your data?
The data source varies depending on the data point. For emissions, for instance, we use reported emissions unless these aren't available, in which case we use our internal estimation model. For the data used in the management indicators, we use publicly available data or data sourced from direct questionnaires where appropriate and possible. This is all done via a mixture of AI-enabled data mining supplemented strongly by human research and quality control.
The LCTR Research team consists of over 120 professionals and specialists globally with rich experience in climate-related research methodologies, policies, and regulations. This includes over 10 individuals focused on quality assurance and continuous improvement, leveraging multiple tools and technology-based solutions to ensure data integrity and consistency.
What is the cost for your data offering?
Our pricing is based on scope of that data needed and each client’s specific use case.