ESG Data Guide 2023

Morningstar Sustainalytics - ESG Risk Ratings

Data category

  • Environmental data
  • Social data
  • Governance data
  • Rankings
  • Ratings
  • Research data

The data offers solutions for:

  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight

Who are the data users?

  • Investors
  • Financial institutions

Brief description of the data offering

Morningstar Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. This multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an absolute assessment of ESG risk. We identify five categories of ESG risk severity that could impact a company’s enterprise value. For funds, we look at how well issuers within the portfolio or fund are managing risk and aggregate it based on a weighted average.

Where and how do you source your data?

Our team of over 800 ESG analysts leverage smart technologies to enable them to monitor more than 60,000 media sources and up to one million news articles daily. We also collect data from publicly available sources like regulatory filings, sustainability and Impact reports and NGOs. This data is reviewed and analysed using our transparent and robust methodologies to provide clear ratings and signals that go through quality control measures such as peer review. Ratings and data are updated annually, or as adverse company events necessitate. Company ratings are aggregated at the fund and portfolio level and then compared to their Morningstar Global Category Peers.

What is the cost for your data offering?

Our pricing is based on the scope of data needed and tailored to each client’s specific use case. Contact us at to learn more.  

What are the key attributes that differentiates the data you offer?

Absolute Measure of ESG Risk

A sophisticated methodology for rating absolute ESG risk, while enabling best-in-class analysis. Company ratings are comparable across peers and subindustries and allow for easy aggregation at the portfolio level.

Extensive Coverage

The ESG Risk Ratings research universe includes more than 16,300 analyst-based ESG Risk Ratings, spanning public equity, fixed-income, and privately held companies. Additionally, the universe has enhanced coverage of Chinese companies listed in Shanghai and Shenzhen, which are predominant regional contributors in emerging market indices.

Integrated Corporate Governance Information

Fully integrated, comprehensive corporate governance research and ratings.

Transparent Methodology

Transparent methodology with multiple levels of data and qualitative insights to provide clients with custom ESG solutions.

Consistent Approach

The consistency of the numerical rating, and rating of securities both on the subindustry and global level allows for easy aggregation and clarity in reporting at the fund and portfolio level.

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Morningstar Sustainalytics ESG Risk Ratings and Data provide a granular, transparent approach to ESG at the fund, company, and portfolio level to support use cases across the investment value chain.

Contacts

inquiries.Americas@sustainalytics.com

Contacts

inquiries.APAC@sustainalytics.com

Contacts

inquiries.EMEA@sustainalytics.com

Contacts

inquiries.Japan@sustainalytics.com