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New index provides exposure to U.S. and Developed European companies whose business activities contribute positively to the UN Sustainable Development Goals (SDGs), is supported by data from Morningstar Sustainalytics and has been licensed by Citi.

LONDON, December 14, 2023 -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, today announces the launch of the Morningstar Transatlantic Sustainable Development Goals Select 40 Index. The new index, powered by the methodology of the fastest growing global index provider Morningstar Indexes and drawing on the leading ESG data and risk ratings of Morningstar Sustainalytics, is one of the first impact-oriented indexes designed for the structured products market and has been exclusively licensed by Citi for a significant new mandate.

Julien Thibaud, Global Head of Derivatives & Exchange Business Development for Morningstar Indexes, said: “We are excited to collaborate once again with Citi to offer an ESG index-based approach for structured product investors, in this case one of the first impact-oriented indexes for the structured products market. This new index draws on the leading global index methodologies of Morningstar Indexes and is based on the leading ESG research and data of Morningstar Sustainalytics. It is designed to address growing investor interest in impact-oriented investment strategies and market exposures.”

Axel Pierron, Director of Client Relations for Morningstar Sustainalytics said: “We are proud to support an index for investors focused on the positive contribution of their portfolios to achieving the UN Sustainable Development Goals. Through their activities companies can provide products and services that can deliver a number of positive real-life impact, from Human Development, to Climate Action, Healthy Ecosystems, Resource Security, and Basic Needs. These kind of collaborative index initiatives are a way forward for investors to meaningfully contribute to prosperity for people and the planet, now and into the future.”

Elree Winnett Seelig, Head of ESG Markets, Citi added: “This index marks a new step in the collaboration between Citi and Morningstar Indexes to build a differentiated ESG index range based on unique and innovative data sets, addressing our clients’ evolving objectives.”

Arthur Dorbessan, Global Head of Retail Indexes – Citi Multi Asset Group said: “As ESG investment becomes more targeted, it is fundamental to propose more ESG-aligned indices to our clients. Citi is proud to collaborate with Morningstar and Sustainalytics to offer an investment access to companies with material revenues derived from sustainable activities through the Morningstar® Transatlantic Sustainable Development Goals Select Index.”

The Morningstar Transatlantic Sustainable Development Goals Select 40 Index provides investors with exposure to U.S. and Developed European companies whose business activities contribute positively to the UN SDGs. Index constituents must pass stringent ESG screens and derive at least 25% of their revenue from one or more of the Sustainalytics Impact Themes; Human Development, Climate Action, Healthy Ecosystems, Resource Security and Basic Needs. Constituents are selected based on the highest total impact score as measured by Morningstar Sustainalytics Impact Metrics.     

The new index joins Morningstar Indexes family of sustainable investing index solutions, a global range of market indexes designed to help investors address a variety of sustainable investment goals including ESG risk, climate and impact. Morningstar continues to develop a broad range of market data, insights, investment tools and research to help a wide spectrum of sustainable investment goals across markets.

About Morningstar, Inc. 

Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $246 billion in assets under advisement and management as of Dec. 31, 2022. The Company operates through wholly- or majority-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.

About Morningstar Indexes and Morningstar Sustainalytics 

Morningstar Indexes and Morningstar Sustainalytics have recently formed a strategic alignment to provide a more holistic and robust ESG offering to Morningstar clients. This growing collaboration includes ESG-related products, insights and research. 

As the fastest-growing global index provider for the last two years according to Burton-Taylor International Consulting, Morningstar Indexes was built to keep up with the evolving needs of investors—and to be a leading-edge advocate for them. Morningstar's rich heritage as a transparent, investor-focused leader in data and research uniquely equips Morningstar Indexes to support individuals, institutions, wealth managers and advisors in navigating investment opportunities across all major asset classes, styles, and strategies. From assessing risk and return with traditional benchmarks to helping investors effectively incorporate ESG objectives into their investment process, our range of index solutions spans an investment landscape as diverse as investors themselves. We help investors answer today's increasingly complex questions so that they can more easily reach tomorrow's goals. Please visit indexes.morningstar.com for more information. 

Morningstar Sustainalytics is a leading ESG data, research, and ratings firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world's leading asset managers and pension funds who incorporate ESG information and assessments into their investment processes. The firm also works with hundreds of companies and their financial intermediaries to help them consider material sustainability factors in policies, practices, and capital projects. Morningstar Sustainalytics has analysts around the world with varied multidisciplinary expertise across more than 40 industry groups. For more information, visit www.sustainalytics.com.

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi 

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