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Morningstar

The Great Reclassification: How SFDR Is Changing Funds

Over the past three months, asset managers have continued to enhance existing strategies, reclassify funds, and launch new ones meeting Article 8 or Article 9 requirements

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Sustainable Investing in 2021

  • ESG letters

    ESG Week

    From biodiversity to gender, we present our guide to environmental, social and governance issues

  • arrow moving up

    Do ESG Stocks Outperform?

    ESG stocks have done well this year. We dive into the data to find out if this is a fluke or a new dawn

  • union jack jigsaw

    Is the UK Market Unsustainable?

    How do fund managers approach environmental sustainability when investing in the industrial-heavy UK market?

  • hand in shadow over a ballot box

    Tracker Funds Have Too Much Voting Power

    Criticisms about index funds have proven largely unfounded – until now

  • Chevron gas station

    Is Chevron's Plan to Reduce Scope 3 Emissions Feasible?

    Shareholders support the narrow-moat company's proposal, however, Scope 3 emissions present a different challenge

  • Morningstar ESG commitment level

    Morningstar Steps Up ESG Coverage

    The second cohort of funds have been assessed under the Morningstar ESG Commitment Level

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    How Do Managers Push for Change?

    Engaging with companies is how fund managers push for change, and this tactic was more important than ever in a pandemic year

  • morningstar sustainability atlas map

    Which Countries Lead on ESG?

    EARTH DAY 2021: Morningstar's Sustainability atlas assesses the ESG profile of countries across the globe. Which regions are leading and which countries are lagging?

  • Magnifying glass

    How to Compare Climate Aware Funds

    When it comes to sustainable investing, there is more choice for investors than ever before. We look at how climate funds compare, and whether they deliver

  • Chopped down trees

    How Investors Can Stop Deforestation

    EARTH DAY 2021: With deforestation increasing last year, shareholders can play a role in stimulating better management of resources by voting and engaging

  • Magnifying glass ESG investing

    Have ESG Funds Outperformed?

    VIDEO: Investors concerned that ESG investing means sacrificing returns may be surprised at how sustainable funds performed in 2020, says Morningstar's Mara Dobrescu

  • water droplets

    Why Invest in Water?

    EARTH DAY 2021: The increased interest in environmental issues and the scarcity of the commodity are attracting investors toward so-called blue gold

  • factory with carbon emissions

    9 Undervalued Low-Carbon Stocks

    EARTH DAY 2021: These wide-moat European stocks are industry-leaders and well-positioned for a world less dependent on fossil fuel

  • Women symbols

    International Women's Day 2021

    Which companies lead on gender diversity, why the European fund management industry still has much more to do, and the financial costs of being a woman

  • hazard warning sign

    Can ESG Investing Reduce Risk?

    Could ESG investing reduce risk and boost returns? Analysis of the past five years suggests the answer is yes

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    3 Themes for ESG Investing in 2021

    Will 2021 be the year ESG investing finally makes it into the mainstream? Morningstar's Hortense Bioy looks at three themes for sustainable investors

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    Why Fund Managers Engage on ESG

    Why do investors engage with companies on environmental, social and governance issues? We asked these managers why they engage and the effect it has

  • lightbulbs

    Morningstar ESG Ratings Explained

    What's the difference between the Morningstar ESG Commitment Level and the Morningstar Sustainability Rating, and how can investors use the two to choose funds?

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    Which Fund Groups Get the Most Globes?

    We have looked at asset management firm’s average Morningstar Sustainability Rating score – and who the leaders and laggards are

  • dollar sign

    Why Invest in Green Bonds?

    This year, your New Year’s resolution might be to make the money you invest have an impact. We look at some green bonds funds that could do the job

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    Airbnb IPO: The ESG Risks

    Experts highlight governance and social risks that overshadow the excitement over the online property portal website's IPO

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    Why Become an ESG Investor?

    Are you a devotee, an optimist or a samaritan? Morningstar columnist John Rekenthaler looks at the options - whether you consider yourself an ESG investor or not

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    When to Use a Tracker Fund for ESG Investing

    VIDEO: When should you pick a tracker fund for ESG investing, and when is an actively managed fund the right choice? Morningstar's Hortense Bioy explains

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    How to be "Good" With Your Money

    Investors are increasingly considering how ESG may play a part in their portfolios. Here’s a checklist for those looking for help

  • New gold trophy trophies 300 by 145

    Which Fund Groups Lead on ESG?

    A new metric from Morningstar helps investors gauge which asset managers really take ESG to heart

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    How to Use the ESG Commitment Level

    Struggling to pick from the wide range of sustainable funds? Morningstar has launched the ESG Commitment Level to help

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    What Type of ESG Investor are You?

    MICUK 2020: The Covid-19 pandemic has thrown ESG investing into the spotlight, says Boring Money founder Holly Mackay. So what kind of ESG investor are you?

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    What is ESG?

    Video: From climate change to workers' rights, ESG is a big part of the investing world. We're back at the investment board to explain what it means and why it matters

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    3 Easy Steps to Find a Suitable ESG Fund

    Morningstar's ESG Screener makes it simple to find funds that score highly in environmental, social and governance factors

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    Can Car Companies be ESG Investments?

    VIDEO: Car makers may not be an obvious investment choice for ESG-conscious investors, but Morningstar analyst Tancrede Fulop says some of the largest companies score highly in some measures such as safety and human capital

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    Climate-Focused ETFs Multiply

    The transition towards a low carbon future is a risk for any investor’s portfolio. But ETFs that can help mitigate this risk have multiplied over recent years. We take a look at what’s on offer

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    Winners in the Transition to Low Carbon

    We’ve talked to fund managers to see which companies are benefiting from the shift to low carbon

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    Fund Assets Hit £800 Billion

    Flows into sustainable funds remained steady in the third quarter of the year, as investor interest in ESG issues intensifies in the wakes of the coronavirus pandemic

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    Best and Worst ESG Funds of 2020 So Far

    There's a wide gap between the winners and losers of 2020. We look at the top and bottom performing ESG funds of the year so far

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    What is the "S" in ESG?

    Guest host Isla Shaftain asks Morningstar analyst Elizabeth Stuart how investors can take Social matters into account when choosing investments

  • Lightbulb idea 300 by 145

    Why Does Climate Change Matter to Investors?

    Back to School Week: Why are investors thinking about climate change and how can they can incorporate it in their portfolios? Guest host Isla Shaftain speaks to Morningstar's Elizabeth Stuart

  • Dollar sign neon 300 by 145

    The Latest Look at Sustainable ETFs

    The amount of money invested in ESG tracker funds has doubled in just three years. What's driving our appetite for sustainable investments?

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    Responsible Investing in a Global Pandemic

    The Covid-19 crisis has thrown responsible investing into the spotlight, and some fund groups are using the pandemic to push for positive change

  • Coal fired power plant 300 by 145

    ESG Investing in Emerging Markets

    Emerging markets may not be a typical hunting ground for ESG investors, but these tracker funds screen for sustainable stocks in the region

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    Sustainable Fund Flows Hit Record in Q2

    Flows into sustainable funds more than double in second quarter, helped by heightened interest in ESG issues and new fund launches

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    Coronavirus Controversies Climbing

    The Covid-19 crisis has made investors think about how companies treat their customers and employees. We look at why the number of controversies is climbing

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    Tech Giants, Anti-trust and ESG

    Share price performance of Google, Apple, Amazon and Facebook remains strong but their social licenses - the "S" of ESG - may be weakening under US lawmakers' scrutiny

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    How to Profit from Disruption: Part 4

    As part of ESG week, we look at ESG disruptors that are trying to improve the world, from electric cars to insurance with a social conscience

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    Why the "S" in ESG is Important

    The E and G of environmental, social and governance investing often get the most attention, but focusing on the S could reap rewards as well as making a positive impact

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    3 Funds for ESG Investing

    With thousands of funds to choose from, finding the right ESG option for your portfolio can be difficult. We look at three options

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    Everything You Need to Know About ESG

    Interested in sustainable investing? We look at how to pick apart the different ways funds that consider environmental, social and governance (ESG) factors

  • Oil flare 300 by 145

    Investing in Times of Climate Change

    Climate change has become a top issue for investors, but working out what sustainable funds are investing in and whether they are delivering on their promises is not always easy

  • Weights 300 by 145

    15 Stocks to Invest in Change

    These companies achieve high Minority Empowerment Scores because they demonstrate a strong commitment to diversity and inclusion

  • Voting ballot box 300 by 145

    What Is Proxy Voting and Why You Should Care

    You are a shareholder of the companies in your portfolio, and proxy voting is the way for you to have a say

  • Question mark new 300 by 145

    Do Sustainable Funds Beat their Rivals?

    Morningstar has analysed the performance of 4,900 funds to find out whether sustainable funds can beat their traditional counterparts over the long-term

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    Investing Has a Role in Ending Systemic Racism

    Editorial: Morningstar's Jon Hale says investors have a role to play in ending systemic racism, and the way you invest can have a bigger impact than you might think

  • One way arrow 300 by 145

    The Only Way is ESG

    Sustainable investing has moved into the mainstream in recent years. Eventually everyone will be an ESG investor, says Morningstar columnist John Rekenthaler

  • Data centre 300 by 145

    Should You Invest in Data Centres?

    Data centres are the backbone of our communication age, but what are the ESG credentials of these power-hungry powerhouses?

  • Commuters CCTV 300 by 145

    'Fund Firms Must do More on Human Rights'

    Research by ShareAction finds fund giants must do more on human rights, and US asset managers lagging those in Europe and Asia

  • Flowing water ESG 300 by 145

    Investors Back ESG in the Crisis

    Sustainable and ESG funds bucked the trend in the Covid-19 sell-off, enjoying positive inflows, the latest Morningstar Global Sustainable Fund Flows Report reveals

  • Green magnifying glass 300 by 145

    Investors Need to Choose Green Funds Carefully

    Video: Morningstar's Hortense Bioy looks at how investors can make sense of sustainable funds and why they could be a good addition to your portfolio

  • Green earth 300 by 145

    Surge in Funds Rebranding as Sustainable

    As investors become more interested in sustainable and ESG investing, fund groups are rebranding existing funds. Why?

  • Plus and minus sign 300 by 145

    Does Divestment Work?

    Should fund managers try to encourage companies to change for the better by refusing to invest?

  • Wind farms 300 by 135

    ESG Equity Funds in the Sell-Off

    The first quarter of 2020 is the first time that many sustainable funds have been tested in a bear market. We look at how they held up compared to their peers

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    Record Year for Sustainable Investments

    A record year for inflows into sustainable funds saw assets reach €668 billion at the end of 2019, and investors' interest in responsible investments shows no sign of abating

  • Black Rock for Sustainable page

    BlackRock's Sustainable Investing Plans

    The world’s largest asset manager intends to become the world's foremost sustainable investor, a move that many think is long overdue

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    Top Performing ESG Funds of 2019

    Climate change has been centre stage in 2019, but how have sustainable and ethical funds fared? We look at the best and worst performers of the year

  • Impact 300

    Morningstar Sustainability Ratings: The Impact

    The updated Morningstar Sustainability Rating has led to a number of changes to funds' globe ratings, with some investments adding a surprising amount of ESG risk to fund portfolios

  • Hortense 300 by 145

    How to Incorporate ESG into Investments

    Morningstar's Hortense Bioy asks Robeco's Masja Zandbergen how funds can integrate environment, social and governance factors into their investment process

  • Windfarms 300 by 145

    IA Introduces Guidelines for ESG Investing

    Investment trade body urges industry to adopt a common language to help people better understand sustainable investing

  • Umbrella 300 by 145

    How to Become an ESG Investor

    Interactive investor's Jemma Jackson talks about how investors can get their head around confusing ESG terminology

  • Wind farm 300 by 145

    Bond Funds for Ethical Investors

    Ethical bond fund managers reveal which sectors and themes they favour and why UK government debt is not yet green enough

  • Jigsaw 300 by 145

    Good Money Week

    Our special report looks at all aspects of sustainable investing, including funds, gender diversity and how to get your head around the terminology

  • Electric cars 300 by 145

    Will Electric Vehicles Hit the Mainstream?

    EVs are nice to look at but cost and battery life concerns may stop people buying them. In part three of our electric vehicle series, we look at whether EVs will make it to the mainstream

  • City solar panels 300 by 145

    Is ESG Investing a Fad?

    Morningstar's Elizabeth Stuart explains some of the biggest themes in investing and why ESG is here to stay

  • Waste 300 by 145

    Why Waste Matters for ESG Investors

    A circular economy needs businesses not just to maximise recycling and minimise waste but to fundamentally re-engineer their products and services

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