ESG Data Guide 2024

Morningstar Sustainalytics - Second Party Opinions

The data offers solutions for:

  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Nature-based information
  • Nature-based information: Biodiversity
  • Nature-based information: Land use
  • Nature-based information: Oceans
  • Nature-based information: Water
  • Norms-based screening
  • Reporting: Other Regulations
  • Reporting: SFDR
  • Reporting: UN SDGs
  • Social impact analysis and insight

Who are the data users?

  • Corporates
  • Financial institutions
  • Government

Brief description of the data offering

Morningstar Sustainalytics’s second-party opinion (SPO) services allow issuers to comply with screenings and ensure the bond verifications are aligned with accepted market principles (e.g. the Green Bond Principles or the Green Loan Principles) and that the proceeds of the bond or loan, as set out in the framework, are aligned to market practices and expectations from the investment community. Our SPO services include:

  • Annual review: we work with issuers post-issuance to ensure that the projects financed, and the reporting are aligned with the intended use of proceeds and commitments set out in the bond framework.
  • Climate bond verification: we provide pre and post-issuance verification and ongoing annual verification to provide issuers with the information to determine whether the bond meets requirements at each stage of the process.
  • EU Taxonomy: this additional assessment aligns the issuer’s bond/loan framework with the EU Taxonomy. Adding this to an SPO assures the market and investors that the bond framework is aligned to the EU’s six environmental objectives.

Where and how do you source your data?

Morningstar Sustainalytics relies on credible ESG frameworks and market-recognized ESG materiality frameworks such as Morningstar Sustainalytics' own ESG Risk Rating framework and industry reports, and also external sources such as the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI). These tools are crucial for identifying the primary ESG risks associated with companies and the sub-industries in which they operate. Additionally, we have our own comprehensive classification and key considerations with respect to economic activities and technologies to be used to finance projects with meaningful environmental or social benefits. This is a comprehensive guide and methodology developed over time to keep pace with global developments. In addition, we can use internationally widely accepted organisations that set technology and asset-specific environmental standards and sectoral decarbonisation approaches (SDAs), such as the Climate Bond Initiative (CBI), the Science-based Targets Initiative (SBTi) or the International Energy Agency (IEA).

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. 

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

For six years running, Morningstar Sustainalytics Corporate Solutions has been recognized as the Largest Verifier for Certified Climate Bonds by Climate Bonds Initiative (CBI). Morningstar Sustainalytics continues to focus on supporting the growth and integrity of the climate-resilient global market through in-depth insights, research, and innovation to support issuers with the renowned credibility of the CBI framework. Morningstar Sustainalytics continues to be recognized for innovation and leadership in delivering credible second-party opinions (SPOs) to advance the green, social, and sustainability capital debt market. The world’s leading green, social and sustainability bond issuers, including Fortune 500 companies, sovereigns, foundations and other organizations look to Sustainalytics as a trusted second-party opinion provider. Morningstar Sustainalytics’ second-party opinion service has won multiple awards and continues to be an industry leader, having successfully completed more than 1,100 projects for issuers and their underwriters.