Morningstar Low Carbon Transition Leaders Indexes
Providing diversified, broad market exposure to companies leading their sector peers in their readiness for—and action towards—climate transition.
key features
A Holistic Approach to Climate Investing
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| Underpinned by tangible and forward-looking metrics from Sustainalytics Provides a 360-degree view to identify which companies are taking the most action towards aligning with net zero. |
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| Highlights green revenue and companies reporting and reducing their emissions Tilt factors are applied to emphasize companies with green revenue such as renewable energy, green transportation, and green real estate as well as those reporting their carbon emissions and reducing their carbon intensity. |
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| Delivers diversified broad market exposure A best-in-class approach targets the top 50% of companies from each sector with the best Climate Change Leaders Scores relative to their peers. |
analysis
Aligning with Net Zero
Investors today need to look beyond corporate net zero pledges to distinguishing companies taking measurable steps to reduce greenhouse gas emissions and adapting their business models to combat climate change. The Morningstar Low Carbon Transition Leaders Indexes provide exposure to companies from each sector taking the most action towards transitioning to a low carbon economy.
Morningstar Sustainalytics’ Low Carbon Transition Ratings
The Morningstar Low Carbon Transition Leaders Indexes are underpinned by Sustainalytics’ Low Carbon Transition Ratings, which leverage a two-dimensional framework to measure an issuer's exposure from their expected emissions, while also accounting for management actions. Learn how the ratings assess a company's progress toward their stated net-zero commitments.
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Morningstar Sustainalytics is a leading ESG research, ratings and data firm that supports investors around the world with the development and implementation of responsible investment strategies. For nearly 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. The firm also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices, and capital projects. With 17 offices globally, Morningstar Sustainalytics has more than 1,800 staff members, including more than 800 analysts with varied multidisciplinary expertise across more than 40 industry groups.
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