The pace of global warming and its associated impacts continues to accelerate. Achieving the goal of limiting global temperature rise to less than 1.5 degrees Celsius will require speeding up decarbonization efforts and a massive scaling up of investment, particularly in emerging markets.  

This report offers institutional investors strategies to finance decarbonization activities in emerging markets, which are expected to be the largest source of future emissions growth. Drawing on the Morningstar Emerging Markets Low Carbon Transition Leaders (EM LCTL) Index and the Morningstar Sustainalytics Low Carbon Transition Ratings (LCTR), the report also demonstrates how investors can increase their exposure to companies that outperform their peers in terms of low-carbon transition readiness and demonstrate strong climate action. 

Readers of this report will learn about:

• How financing decarbonization, particularly in emerging and developing economies, can support the low-carbon transition in the real economy.   
• Strategies to explore decarbonization in carbon-intensive sectors within emerging markets, using best-in-class selection, engagement, and direct financing across public and private markets.  
• How climate transition-focused indexes, like the EM LCTL Index, can help identify opportunities to finance decarbonization efforts in carbon-intensive sectors in emerging markets.  
• Which companies are demonstrating strong climate action through effective management of their emissions trajectory according to Morningstar Sustainalytics’ LCTR. 

Download the report for full insights.