Morningstar Sustainalytics’ Low Carbon Transition Ratings provides investors with a forward-looking assessment of a company’s current alignment to a net-zero pathway

• Measure the degree to which a company’s projected greenhouse gas (GHG) emissions differ from a net-zero pathway between now and the year 2050
• The ratings leverage a two-dimensional framework that measures an issuer's exposure from its expected emissions, while also accounting for management actions
• Assess the company's progress toward its stated net-zero commitments by evaluating the quality and ambition of its GHG reduction targets
• A TCFD module is included in the rating to assess and track the comprehensiveness of issuer reporting and translate their assessment of issuers’ managerial preparedness across the four thematic areas recommended by the TCFD: governance, strategy, risk management, and metrics and targets

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Morningstar Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. Sustainalytics also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices and capital projects.

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