Morningstar’s Guide to ESG Risk

Today, there is an increasing recognition that ESG factors can have a potential impact on investments and portfolio outcomes—performing well in these areas can benefit society, but it can also help reduce the risks a company passes on to its equity and bond investors. 

As more investors seek to make more sustainability conscious investment decisions, this guide aims to provide an overview of one of the most common approaches to sustainable investing: assessing and limiting ESG risks.