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Sustainable Investing

The Morningstar Sustainability Rating, Explained

The Morningstar Sustainability Rating, Explained

The Morningstar Sustainability Rating for funds helps investors measure portfolio-level risk from environmental, social, and governance, or ESG, factors.

To evaluate portfolios, Morningstar uses ratings from our partner Sustainalytics that measure a company's material ESG risk.

We then roll up the company-level scores on an asset-weighted basis to get a portfolio score.

A fund with high ESG risk relative to its Morningstar Global Category would receive 1 globe.

A fund with low ESG risk would receive 5 globes.

The Morningstar Sustainability Rating for funds helps investors make comparisons across industries and better understand and manage total ESG risk in their investments.

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