Skip to Content

DFA Intl Sustainability Core 1 DFSPX Sustainability

| Quantitative rating as of

Sustainability Analysis

Author Image

Sustainable Summary

DFA International Sustainability 1 Portf has a number of positive attributes that a sustainability-focused investor may find appealing.

The ESG risk of DFA International Sustainability 1 Portf's holdings is comparable to its peers in the Global Equity Large Cap category, thus earning an average Morningstar Sustainability Rating of 3 globes. Funds in the same category rated 4 or 5 globes tend to hold securities less exposed to ESG risk. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.

Based on its latest prospectus, sustainability or ESG factors are a focus in the investment process of DFA International Sustainability 1 Portf. Funds with ESG-focused mandates are more likely to deliver positive sustainability outcomes. One key area of strength for DFA International Sustainability 1 Portf is its low Morningstar Portfolio Carbon Risk Score of 7.84 and low fossil fuel exposure of 3.31% over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy.

By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with thermal coal, and, as expected, the fund has negligible involvement in such companies.

Its 7.69% involvement in carbon solutions is in line with that of its average peer in the Foreign Large Blend category. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on. The fund exhibits moderate exposure (2.32%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.

ESG Commitment Level Asset Manager

An ESG Commitment Level Asset Manager rating is not assigned to this investment.

Morningstar analysts award an ESG Commitment Level Asset Manager ratings to investments that also receive Morningstar Analyst Ratings. Not all investments currently have Asset Manager rating. Morningstar is expanding its coverage, prioritizing investments that are most relevant to investors.