Our Decarbonization Strategy and Net Zero Transition Plan
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We are excited to introduce Morningstar’s Climate Transition Plan [PDF], which summarizes our initial approach to executing our organization’s net zero commitment.
The Transition Plan details Morningstar’s emissions, our work to measure, manage, and reduce our carbon footprint, and describes our future approaches to reducing Morningstar’s impact on the environment while expanding the growth of our business and the reach of our products.
Morningstar’s mission is to empower investor success. Enabling sustainable-investing choices and operating with sustainable business practices are integral to that mission. Our commitment to sustainability shapes our efforts both internally and externally; in 2021, Morningstar joined financial services peers to announce the launch of the Net Zero Financial Service Providers Alliance, part of the larger Glasgow Financial Alliance for Net Zero.
We recognize that limiting global emissions requires a whole economy in transition and that systematic change requires coordinated and innovative commitments across the financial system. Our net zero climate transition plan is a time-bound approach to aligning the firm’s operations, capabilities, and business model with the latest and best insights from climate science. It is consistent with the innovative research, data, and solutions we offer to the market.
For Morningstar, our participation in this effort means acting quickly to reduce the impact of our business operations by engaging in transparent, long-term planning and reporting in the context of global climate change. It entails working with peers across our industry to create shared frameworks for measuring our progress, and it requires us to align relevant portions of our product offerings to science-based net zero targets.
- In the short term, Morningstar will reduce measured greenhouse gas emissions by 50% by 2030 against a 2019 baseline.
- In the long term, Morningstar commits to achieving
- Morningstar will deliver annual reporting on progress.
- Morningstar will work with other member firms to define product parameters relevant to net-zero transition plans.
Morningstar's Climate Transition Plan is a part of our firm-wide effort to enhance our understanding of climate change, expand our climate research, data, and tools and drive net zero capabilities into our product offerings. It also positions us to support investors of all types as they seek to grapple with climate transition and achieve their goals.