Enhancement to Sustainability Rating Emphasizes Material ESG Risk
The globe rating now reflects company ESG risks both within and across industry groups.
Since we launched the Morningstar Sustainability Rating in March 2016, sustainable investing has continued to grow. One study reported that assets under management across all sustainable investing strategies (institutional and retail) grew 38% to nearly $9 trillion from the start of 2016 to just the start of 2018, nearly two years ago. Sustainable funds in the United States have been attracting record inflows. They set calendar-year records in 2017 and 2018, and through September 2019, they have attracted nearly 3 times more than in all of 2018.
More asset managers have added the consideration of environmental, social, and corporate governance criteria to their investment process. More than 2,300 have signed the Principles for Responsible Investment. In addition, nearly 300 funds available to U.S. investors have recently noted the addition of ESG criteria to their process in their prospectus. When we launched the Sustainability Rating, about 165 funds available to U.S. investors had a sustainable investing mandate. Today, that number is 291 and counting.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.