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Morningstar's Sustainability Ratings Coverage Expands by 25,000 New Funds with the Addition of Sustainalytics' Country Risk Ratings
Investors now have access to ESG risk insights across more than 85,000 funds worldwide, spanning corporate and sovereign holdings TORONTO, Nov. 17, 2021
About this update from Morningstar, Inc.
[{"type":"text","content":"Investors now have access to ESG risk insights across more than 85,000 funds worldwide, spanning corporate and sovereign holdings \n TORONTO, Nov. 17, 2021 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, has expanded coverage of its Morningstar Sustainability RatingTM for funds by embedding Country Risk Ratings from Sustainalytics, a Morningstar company and a leading global provider of ESG research, ratings and data. The move makes the Morningstar Sustainability Rating available across more than 85,000 funds worldwide, including new coverage for approximately 25,000 multi-asset and fixed-income funds, that span both corporate investments and investments in countries, such as sovereign debt. Investors can access Morningstar's Sustainability Ratings across flagship Morningstar platforms, including Morningstar.com®, Morningstar DirectSM and Morningstar® Advisor WorkstationSM. \n\n \n \n \n \n \n \n\n \nIn 2019, Morningstar enhanced its Sustainability Rating based on Sustainalytics' ESG Risk Ratings, which measure the degree to which a company's economic value may be at risk due to ESG issues. Incorporating Sustainalytics' Country Risk Ratings in the latest methodology evolution advances Morningstar's Sustainability Rating framework from a single sustainability score to a modular approach. Based on the new framework, investors can now obtain distinct sovereign and corporate portfolio scores and rankings, which roll-up to the overall Morningstar Sustainability Rating. The Morningstar Sustainability Rating now offers greater precision and transparency to investors, providing independent measures of ESG risk for corporations and countries. \n\"Investors with a fixed income focus are increasingly looking at how ESG risks may affect their funds and underlying holdings,\" said Will Ridout, senior manager of product strategy and development at Sustainalytics. \"Thanks to these enhancements, investors can assess the ESG risk of their sovereign exposure and integrate these considerations into their fund selection criteria. By offering visibility into our Corporate Sustainability Scores and Sovereign Sustainability Scores, Morningstar and Sustainalytics are offering investors a comprehensive assessment of ESG risk through multiple lenses.\" \nWhile Sustainalytics' ESG Risk Ratings and C...