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Independent investment research firm Morningstar announced today the launch of the Morningstar ESG Commitment Level, and the Morningstar ESG Risk Rating Assessment, designed to provide ESG assessments of asset managers and companies, respectively.
The launch of the new products follows the acquisition last year of ESG ratings and research provider Sustainalytics, and the subsequent announcement that it has started the process of formally integrating ESG factors into its analysis of stocks, funds, and asset managers, including the integration of Sustainalytics research into Morningstar’s equity research methodology.
Morningstar ESG Commitment Level provides assessments for nearly 900 funds and more than 70 asset managers of the extent to they are incorporating ESG factors into their investment processes. The tool follows a four-point scale of Low, Basic, Advanced, and Leader, distilling the ESG resources, policies, and expertise at an asset management firm or within managed investment strategy into a simple assessment. The assessments are currently available for Morningstar Direct, Morningstar Office, and Premium members of Morningstar.com, and will be available later this month in Morningstar Advisor Workstation and Morningstar Analyst Research Center.