ESG Risk Ratings


ESG risks can significantly impact a company's economic value. Morningstar Sustainalytics’ ESG Risk Ratings provide a consistent measure of material environmental, social, and governance risks.  

The ratings are based on an assessment of a company's exposure to risk and how well it manages those risks, resulting in a single score that indicates the company's overall ESG risk level. 

Morningstar Sustainalytics’ ESG Risk Ratings offer unique insights into ESG risks with the following features: 

  • Material ESG Focus: Concentrates on the key ESG issues that present the most substantial risks to a company's economic value. 
  • Two-Dimensional Approach: Uses an exposure lens to evaluate a company's ESG risk and a management lens to assess how well it manages these risks. 
  • Granular Analysis: Provides detailed insights into a company's governance, with a dynamic adjustment for controversies, reflecting external shocks. 
  • Comparability Across Industries: The single-currency-of-risk approach allows for easy comparison of companies across sectors. 
  • Forward-Looking Assessment: Considers both quantitative and qualitative factors, designed to capture trends and anticipate future developments. 

Download the brochure to learn about how ESG Risk Ratings are measured. 

Download the Methodology