Navigating Material Climate Risks
n the Global Equities Market

Today’s investors must deal with the new material world – where tightening regulations and reporting standards require market participants to demonstrate how they track, disclose and manage ESG issues. The combination of pressure to meet emissions reduction targets, tightening regulations, and the physical impacts of climate change present uncertainties and risks. Yet these factors can also represent opportunities to invest in solutions that contribute to a more just and sustainable global economy.

This report evaluates the alignment of companies listed on the Morningstar Global Large-Mid Cap Equities Index with the transition toward a low-carbon economy. The analysis spans 3,373 public companies, representing 94% of the market capitalization of the index, providing a view of a broad cross-section of the market. We assess the extent to which these firms are misaligned to net zero targets and identify industry-specific challenges and initiatives regarding emissions reporting and solutions. 

Investors reading this report will gain: 

  • An understanding of the materiality of climate change across key industries and the companies that are most closely aligned with a low-carbon economy, relative to their sector peers. 
  • Knowledge on how to combine ESG and financial information based on an approach that draws on index analysis, equity research and ESG ratings, including data from our Low Carbon Transition Rating and Physical Climate Risk Metrics. 
  • Insight into how to develop a more comprehensive framework for mitigating climate-related risks, supporting sustainable solutions, and capturing financial upside.  

Download the report now.

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