Technology & Data

Morningstar Highlights Low-carbon Leaders

Global index provider Morningstar has released its Low Carbon Transition Leaders Indexes – a series of nine new global benchmarks. The benchmarks are tailored to help investors target a broad range of companies from every sector that are leading their peers in preparedness for, and action towards, a low-carbon economy transition. The indices identify climate transition leaders by grouping companies from the parent index by sector, ranking them by their composite low-carbon transition leaders score and capturing the top-scoring 50% in each sector by market cap. The score considers a company’s current carbon intensity, as well as its management score from Morningstar’s Sustainalytics Low Carbon Transition Ratings. In addition, the indices emphasise firms that report carbon emissions and are reducing their carbon intensity, as well as those whose business activities positively contribute to the environment. “Our clients are grappling with an increasingly complex investment landscape and trying to get better understand how the transition to a low-carbon economy will impact markets and companies,” said Anya Solovieva, Director of Global Commercial Strategy and Climate Solutions at Morningstar Sustainalytics. “Incorporating our Low Carbon Transition Ratings within an index methodology enables our clients to apply a forward-looking climate transition risk lens to their global portfolios and invest in leaders across all sectors.” 

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