While corporate disclosure on greenhouse gas (GHG) emissions is improving, reporting on Scope 1, 2 and 3 emissions remains limited. Yet investors need reliable GHG emissions information to assess the climate risks facing their portfolio companies and to fulfill mandatory and voluntary regulatory requirements.
Morningstar Sustainalytics’ Carbon Emission Data provides investors with powerful insights to assess and analyze companies’ GHG emissions.
Our high-quality data set is built on the most up-to-date reported carbon emissions disclosure data from over 7,500 companies, with our sophisticated estimation models expanding our coverage to 16,000+ companies. This allows investors to respond to regulatory requirements like the EU Action Plan and disclosure expectations such as the TCFD, ISSB, and PRI.
Latest Insights
Mandatory Scope 3 Emissions Reporting in the U.S. and Canada: Most Companies Are Unprepared
Carbon Emissions Data by the Numbers
16,000
Covered Companies
130+
Subindustries
15
Metrics
About our GHG Emissions Estimation Models
Morningstar Sustainalytics' multi-factor regression models for Scope 1, 2 and 3 GHG emissions follow a common framework which:
- Considers environmental metrics and factors like sub-industry, geographical location, and a company’s size, facilitating consistency and comparability to more accurately estimate GHG emissions.
- Offers the flexibility to adjust for structural differences in the underlying data and addresses the limitations of data availability
- Accounts for sub-industry variation in business models and GHG-generating activities, with the company activity data in our Scope 1 and 2 models.
| Multi-Metric Multi-Factor Model | Factor 1 (Subindustry) | Factor 2 (Size) | Factor 3 (Country) | Factor N-1 | Factor N |
|---|---|---|---|---|---|
| Scope 1 emissions | ✔ | ✔ | ✔ | ✖ | ✖ |
| Scope 2 emissions | ✔ | ✔ | ✔ | ✔ | ✖ |
| Scope 3 emissions | ✔ | ✔ | ✔ | ✔ | ✔ |
| Common Factors | Refining Factors | ||||
Key Benefits
Latest Reported Carbon Emissions Data
Sustainalytics captures the most up-to-date Scope 1, 2, and 3 data from companies' most recent fiscal year reporting, as it becomes available. We also include companies' historical emissions (including restatements) for 3 years, to facilitate analysis and reporting.
Dedicated In-House Expertise
Benefit from a dedicated analyst team that verifies our robust GHG emissions research in real time. This allows for more accurate reported data than other machine learning driven applications.
Best-in-Class Proprietary GHG Emissions Estimation Models
Mitigate your climate risks with more accurate emissions estimations that leverage models based on a company’s size, subindustry, business activities and geographical location.
High-Quality Portfolio Analytics and Reporting Capabilities
Understand a company’s full emissions value chain with analysis on a portfolio’s Scope 1, 2 and 3 carbon intensity and footprint. Our enhanced Carbon Emissions Portfolio Reports provide rich insights into how your company and sector allocation decisions are impacting the carbon intensity of your portfolio.
Use Cases
Portfolio Analytics and Reporting
Identify and assess high intensity companies within a portfolio to better understand your climate-related risks and opportunities. Investors can also leverage our carbon emissions data to demonstrate and analyze decarbonization trends over time.
Regulatory Compliance
Fulfill requirements for reporting initiatives, such as the TCFD, PRI, and the EU Action Plan. Our carbon emissions data can also be used as an input for stress testing.
Security Selection
Screen industry and subindustries and identify best-in-class companies. Establish maximum emissions thresholds.
Engagement and Voting
Identify and engage with high intensity companies. Set baseline emissions reduction targets and track improvements over time.
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
800+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Products
Climate Solutions
Identify and manage investment risks and opportunities with climate research, ratings and data for investors.
Learn More
Physical Climate Risk Metrics
Assess and disclose the direct and indirect physical climate risks of climate change related exposure.
Learn More
Low Carbon Transition Ratings
Receive a forward-looking assessment of a company’s current alignment to a net-zero pathway.
Learn MoreRelated Insights and Resources
-5-key-questions-answered-about-company-readiness-and-investor-risk.tmb-thumbnl_rc.jpg?Culture=en&sfvrsn=ee2857a6_2 "Navigating the EU Regulation on Deforestation-Free Products (EUDR): 5 Key Questions Answered About Company Readiness and Investor Risk")
Navigating the EU Regulation on Deforestation-Free Products: 5 Key EUDR Questions Answered About Company Readiness and Investor Risk
The EUDR comes into effect in December 2024, marking an important step in tackling deforestation. In this article, we answer five key questions who the EUDR applies to, how companies are meeting the requirements, and the risks non-compliance poses to both companies and investors
Beyond 1.5 Degrees: What the LCTR Tells Us About Companies Managing Their Climate Risk
The LCTR rating of over 8,000 companies shows that global temperatures will rise 3.1 degrees Celsius over pre-industrial averages. This article looks at the overall performance of these companies and the industries that are leading on climate.