The Morningstar Sustainability Rating, Explained
The Morningstar Sustainability Rating for funds helps investors measure portfolio-level risk from environmental, social, and governance, or ESG, factors.
To evaluate portfolios, Morningstar uses ratings from our partner Sustainalytics that measure a company's material ESG risk.
We then roll up the company-level scores on an asset-weighted basis to get a portfolio score.
A fund with high ESG risk relative to its Morningstar Global Category would receive 1 globe.
A fund with low ESG risk would receive 5 globes.
The Morningstar Sustainability Rating for funds helps investors make comparisons across industries and better understand and manage total ESG risk in their investments.