A Deeper Look Into ESG Fund Strategies

Morningstar’s new ESG Commitment Level allows investors to better understand which strategies rise above the crowd in their commitment to ESG.

Matias Möttölä, CFA 09 December, 2020 | 16:55
Facebook Twitter LinkedIn

Trophies wide article 2019

Since 2016, Morningstar has offered investors the Morningstar Sustainability Rating, or "globe" rating, which is a holdings-based measure of a portfolio’s environmental, social, and governance risk relative to peers. While a useful metric, it cannot capture the full breadth of factors that differentiate the ESG commitment employed by a fund manager in a strategy.

To allow investors a fuller view of funds’ ESG investing strengths, Morningstar has introduced a new qualitative measure, the Morningstar ESG Commitment Level for strategies. It delivers an analyst’s qualitative appraisal of the extent to which strategies incorporate ESG factors. Our initial white paper, which was launched on Nov. 17, 2020, includes 147 funds, representing 107 strategies. 

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free

Read the Full ESG Commitment Level Methodology

Find out More

Facebook Twitter LinkedIn

About Author

Matias Möttölä, CFA

Matias Möttölä, CFA  Matias Möttölä, CFA, on Morningstar.fi-sivuston päätoimittaja ja rahastoanalyytikko

© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy