For many sustainable investors, picking companies may depend on how the firms approach diversity, equity, and inclusion. DEI is a cornerstone of the “social” pillar of environmental, social, and governance investing, which is often a synonym for sustainable investing. The new Morningstar Developed Markets LGBTQ+ Leaders Index addresses some of those needs. Below, we’ll describe the index and list some of its cheapest stocks that you may want to research further.
There are many benefits for corporations to have robust DEI initiatives. Embracing inclusivity helps companies attract a broader spectrum of talents and perspectives. Furthermore, firms with strong diversity and inclusion frameworks typically demonstrate superior risk-management strategies and have lower turnover rates and higher employee satisfaction.
Opportunities for investing centered on sexual orientation have been limited.
Morningstar launched the Developed Markets LGBTQ+ Leaders Index in June 2024. Its socially focused indexes also include the Morningstar Minority Empowerment Index, the Morningstar Gender Diversity Indexes, and the Morningstar Women’s Empowerment Index.