How Much Do ESG Ratings Matter to Investors?
How Much Do ESG Ratings Matter to Investors?
One popular criticism of ESG research and ratings focuses on the “inconsistent” views of ESG research providers. To investigate how meaningful company-level ESG ratings divergence is to investors, we compared the Morningstar Sustainability Indexes, which are powered by Sustainalytics’ company-level ESG Risk Ratings and research, to their MSCI equivalents.
What's Inside
What's Inside
- An overview of how the Sustainalytics ESG Risk Ratings assess firms’ exposure to – and management of – financially material ESG risks
- Company-specific examples of how risk ratings from Sustainalytics and MSCI can differ, and how those differences impact index eligibility
- Holdings and performance-based comparisons of select ESG-focused equity and bond indexes from the Morningstar Sustainability Indexes family to peers that incorporate ESG research from MSCI