Morningstar unveils ESG score

Taylee Lewis
— 1 minute read

Morningstar has partnered with research firm Sustainalytics in order to score global mutual and exchange-traded funds on their environmental, social, and governance (ESG) principles.

According to Morningstar, the scores will be based on ESG company ratings from Sustainalytics. This will allow investors to compare funds and relevant ESG factors. 

Morningstar director of manager research, North America, Jon Hale said: “Providing fund scores on environmental, social, and governance factors is a natural extension of our work.”


“We want to bring even greater transparency and accountability to the investment industry with ESG research, data, and tools, while helping investors to put their money to work in ways that are meaningful to them.”

In a study referenced by Morningstar, and conducted by the Morgan Stanley Institute for Sustainable Investing, it was found that 71 per cent of individual investors are interested in sustainable investing.

Sustainalytics chief executive Michael Jantzi said: “ESG considerations, once viewed from the sidelines, are increasingly front and centre for fund investors.”

Morningstar expects to launch the fund-level ESG scores in the fourth quarter of 2015 and through its software platforms in 2016. 

"As part of our mission of helping investors reach their financial goals, we have a long tradition of innovative research centered on good stewardship, lower costs, and more transparency for investors,” said Mr Hale. 


Morningstar unveils ESG score
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