Morningstar Sustainalytics Launches Low-Carbon Transition Assessment Tool for Investors

June 13, 2023

In April 2023, as part of ongoing efforts to enhance transparency, Morningstar Sustainalytics launched a ratings system designed to provide investors with an assessment of a company’s current net-zero alignment. The company’s Low Carbon Transition Ratings provide a set of “forward looking” assessments of the degree to which a company’s projected greenhouse gas (GHG) emissions diverge from its net-zero pathway between the time of the assessment and 2050. According to Morningstar Sustainalytics, the “two-dimensional framework” measures both a company’s exposure from its expected GHG emissions and accounts for management actions, including its demonstrated short-term investment plans, policies and programs.

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