Technology & Data

Morningstar Combines Sustainalytics and Indexes to Boost ESG Offering

Investment data and analytics provider Morningstar has strengthened its ESG offering through the alignment of its Morningstar Sustainalytics and Morningstar Indexes units. Sustainalytics is an ESG data, research, and ratings firm, while Indexes is a global index provider. The new structure will see greater connection between the two businesses, overseen by Morningstar Indexes President Ron Bundy, who will build an operational plan to tightly connect the units and integrate “appropriate” areas. Morningstar said this alignment “enhances its ability to comprehensively meet the evolving needs of investors” and will result will be a “more comprehensive suite of ESG and broader index solutions”. Morningstar acquired Sustainalytics in 2020 and saw a 30.5% growth in revenue in 2022, while Indexes’ revenue grew by 35.5%. “Investors are demanding deeper levels of consideration for ESG risk or sustainable impact in their portfolios, and bringing our indexing capabilities closer to our ESG research and solutions will meet that need,” said Kunal Kapoor, CEO of Morningstar.

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