The changes make the ratings more robust and easier to use.
How is it different?
- Focused on material ESG risk compared to the previously broad array of ESG issues
- ESG risks can be compared across industries rather than within peer groups
- It’s much easier – no longer based on complex calculations
According to Morningstar, investors can use the rating to assess ESG risk of the funds they currently own as well as exploring new funds.
Learn more about the enhancements here.