Skip to Content
US Videos

The Morningstar Sustainability Rating, Explained

This rating helps investors to better understand and manage total ESG risk in their investments.

The Morningstar Sustainability Rating for funds helps investors measure portfolio-level risk from environmental, social, and governance, or ESG, factors. 

To evaluate portfolios, Morningstar uses ratings from our partner Sustainalytics that measure a company's material ESG risk.

We then roll up the company-level scores on an asset-weighted basis to get a portfolio score.

A fund with high ESG risk relative to its Morningstar Global Category would receive 1 globe.

A fund with low ESG risk would receive 5 globes.

The Morningstar Sustainability Rating for funds helps investors make comparisons across industries and better understand and manage total ESG risk in their investments.