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Carbon Ratings & Research

Align your portfolio to the low-carbon economy

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Our Carbon Risk Ratings have been discontinued for sale, please refer to our current solution:

As regulatory and industry pressures mount, investors are increasingly asking how to manage carbon risk in their portfolios. Our Carbon Risk Ratings assess a company's carbon risk, driven by the transition to a low-carbon economy. The Carbon offering has both risk and impact data to enable institutional investors to make informed investment decisions regarding climate change.

Our Solutions

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Carbon Risk Ratings

Our Carbon Risk Ratings assess a company’s carbon risk, driven by the transition to a low-carbon economy.  The ratings are determined by evaluation of a company’s material exposure to and management of carbon issues. 

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Carbon Solutions Involvement

Sustainalytics examines company involvement in carbon solutions, including renewable energy and low carbon alternatives, such as green transportation, green real estate and energy efficiency

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Fossil Fuel Involvement

We assess different types of company involvement in fossil fuels, including thermal coal, oil and gas, oil sands, shale energy, deep water production and Arctic offshore exploration.

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Stranded Carbon Assets Research

We evaluate the risk of oil and gas assets becoming non-commercial due to the transition to a low carbon economy. Exposure includes life-cycle carbon intensity of production and proven reserves as well as involvement in high-cost projects.

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Engagement Services

Our Engagement Service offering also includes thematic engagements on climate change and voting recommendations on ESG and climate-related topics.

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Key Benefits

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Breadth and Scope

Coverage includes reported and estimated data on Scope 1, 2 and 3 emissions as well as several types of involvement research, from shale energy to thermal coal.

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Comprehensiveness

We provide end-to-end solutions to support security selection, product creation, portfolio management and active ownership

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Simplicity & Compatibility

Our forward-looking Carbon Risk Ratings combine multiple, complex forms of carbon research in a simple, decision-useful metric to analyze and report on material carbon risk while allowing for best-in-class and cross-sector comparisons.

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Reliability

Sustainalytics is a trusted research provider with well-established and robust research and quality control processes

Use Cases

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Security Selection

Evaluate company-level carbon-related risks and opportunities for security selection purposes.

 

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Portfolio Management

Assess the risks and opportunities within your portfolio and provide richer reporting insights.

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Support Active Ownership Efforts

Engage with companies by using objective quantitative metrics.

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Advance Low-Carbon Investment Strategies

Manage your portfolio exposure to carbon-related risks.

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Develop New Investment Solutions

The Task Force on Climate-Related Financial Disclosures (TCFD)

Sustainalytics’ carbon research and services can be used to support several of the TCFD recommendations - with an emphasis on identifying and reporting on forward-looking transition risks, including carbon foot-printing and stranded assets. Several of our Active Ownership Services also focus on climate change and can be used to support the recommendation to engage with portfolio companies.

industry emitting carbon

Why Sustainalytics?

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A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

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Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

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End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

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30 Years of ESG Expertise

800+ ESG research analysts across our global offices.

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A Leading SPO Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

Impact Solutions

Measure, manage and report on the social and environmental impact of your portfolio.

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Thematic Engagement

Engage on the most challenging ESG issues, from climate change to human capital.

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ESG Risk Ratings

Take a coherent and consistent approach to assessing financially material ESG risks.

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Morningstar® Low Carbon RiskSM Index Family

Exposure to equity investments with Low Carbon Risk scores and limited exposure to fossil fuels.

Morningstar® Global Renewable Energy IndexSM

Exposure to equity investments that generate revenue from renewable energy and green transportation.

Morningstar® Sustainable Environment Index FamilySM

Diversified portfolio of firms with below average exposure to environmental risk.

Morningstar® Sustainability LeadersSM Index Family

Pure exposure to firms with the most exemplary ESG record.  

Related Insights and Resources

Reflections on COP29: A Participant’s Call to Action for the Financial Sector

Reflections on COP29: A Participant’s Call to Action for the Financial Sector

Sustainalytics' Tom Eveson reflects on the outcome from COP29 and the opportunity for the financial sector to lead as architects for a sustainable future.

Header Ron Bundy quarterly column

Taking a Forward Look on Climate Investing

83% of US-based issuers have some real estate at high physical risk in worst climate scenario, Morningstar Sustainalytics finds.

Living Up to the SRI Label: Strategies for Addressing Companies from High Impact Climate Sectors

Discover how investment firms can leverage LCTR data and company engagement to help ensure their sustainability-focused funds meet the increasingly stringent criteria from standard setters.

Material Matters: The Role of ESG Materiality in Sustainable Investment Strategies

In this article we define ESG materiality and highlight what investors need to know when considering the materiality of ESG issues in their investment portfolios.