ESG ScreenerWhat’s the Morningstar Sustainability Rating?
The Morningstar Sustainability Screener enables users to search for funds based on personal sustainability preferences. Users can define their search by fund intentionality, portfolio involvement, and Morningstar’s Sustainability Rating, and Low Carbon Designations. The Morningstar Sustainability Rating and Low Carbon Designation provide a good starting point for users to understand how Morningstar tracks the ESG and carbon risk associated with fund portfolios. The Sustainability Investment by Prospectus flag reflects whether a fund’s management identifies the fund as sustainability focused in public filings. The screener enables users to dig deeper by selecting the “Show more” feature. Users can exclude involvement in controversial areas with a condensed version of Morningstar's product involvement data. Additionally, users can further direct their search by selecting datapoints pertaining to fund approaches, including ESG, impact or environmentally focused funds.
When screening on the Morningstar Sustainable Attributes data set, outputs may vary from funds included in sustainable fund research lists such as Morningstar’s Sustainable Funds Landscape Report. The number of funds that are tagged as a sustainable investment will constantly evolve as we receive and review new regulatory filings, as strategies adopt new ESG policies, and as new investments are launched. Morningstar researchers use this data as a starting point to conduct qualitative research that also may incorporate notable trends and metrics they are looking to disclose that varies from the outputs of the screen.
For more information on the methodology for Morningstar’s Sustainable Attributes data set, visit the following webpage: Sustainable Attributes FAQ