Investment data and index provider Morningstar has launched a family of sustainability indices for investors applying environmental, social and governance (ESG) principles to their portfolios.
The indices will aim to hold stocks with high sustainability standards but with a similar risk-return profile to the wider market. Morningstar said that there are over 25 indices covering broad regional markets, developed and emerging markets and for single country exposure. The indices are based on Morningstar’s sustainability ratings for more than 20,000 funds, independent equity research on over 1,400 companies and company sustainability scores than evaluate more than 60 ESG metrics. Independent ESG research provider Sustainalytics is also providing company-level ESG research and ratings.