From “The Social Justice Investor: Advance Your Values While Building Wealth, Whether a Few Dollars or Millions” by Andrea Longton, CFA
SUSTAINALYTICS (SUSTAINALYTICS.COM
Sustainalytics provides company ESG (environmental, social, and governance) risk ratings for more than 4,500 companies. The ratings highlight ESG issues that Sustainalytics believes may pose a financially material risk to the company and assess the magnitude of that risk.
Tools and resources include:
Sustainalytics ESG Ratings Tool combines the company’s exposure, or its vulnerability, to ESG risks, and the actions taken by the company’s management to address the ESG issue. Each investment then gets an overall ESG rating. A lower ESG risk rating indicates a lower overall risk of experiencing negative financial impact from ESG issues.
Morningstar’s ESG Screener (www.morningstar.com/esg-screener) uses company ratings developed by the Sustainalytics ESG Ratings Tool (above) to create a database that enables investors to search for funds by their names. Investors can search using a variety of filters. For example, an investor can search for funds that identify “sustainability” or “ESG” in their marketing materials.