As more climate data becomes available, asset managers, asset owners and fund investors are increasingly aiming to measure and mitigate climate transition risks in their portfolios. 

This report explores the climate transition readiness and climate action profile of about 10,000 companies and more than 60,000 mutual funds and ETFs using metrics from Morningstar Sustainalytics’ Low Carbon Transition Rating (LCTR) and Low Carbon Transition Value at Risk (LCT-VaR). The report provides an analysis at the regional and sector level.  

Readers of this report will learn how: 

• Only 14% of companies in our global research universe are taking strong action to manage their transition risk and carbon emissions, while the majority (61%) of companies are assessed as having weak management practices. 

• 30% of funds exhibit strong emission management scores or preparedness for the low-carbon transition, while 25% have weak management scores.  

• Investors can still identify companies and funds that are relatively better positioned for the transition to a low-carbon economy than others, even though virtually all the companies and funds in our database are misaligned with a net zero pathway.

• Funds with a climate-related mandate have different transition risk readiness. 

Download the report to learn more.