Morningstar: ESG Commitment Level Update

Morningstar: ESG Commitment Level Update

February 1, 2024

ESG
Duurzaam (24) ESG

Morningstar today published the Morningstar ESG Commitment Level Landscape Update, an update on the landscape with the review of 12 firms. This brings our total ESG Commitment Level coverage to 97 firms. Out of these, 8% are rated Leader, 24% score Advanced. The largest group of firms – 45% - receive ESG Commitment Levels of Basic, and 23% earn Low.

Key takeaways include:

  • Out of the 12 asset managers reviewed for this report, five were upgraded, including:
    • Comgest -- to Advanced from Basic
    • Fidelity International -- to Advanced from Basic
    • Pictet -- to Advanced from Basic
    • Janus Henderson -- to Basic from Low
    • Man Group -- to Basic from Low
  • We initiated coverage of Nordea at Advanced.
  • The remaining six managers under review maintained their ESG Commitment Levels.
    • Amundi, HSBC AM, and Jupiter retained ESG Commitment Levels of Advanced.
    • Baillie Gifford, Eventide, and Ninety One maintained ESG Commitment Levels of Basic.

Overview of the Morningstar ESG Commitment Level

Below is a summary of the 97 firms carrying an ESG Commitment Level. Highlighted in green are the 12 firms reviewed for this report

01022024 Morningstar

Hortense Bioy, global director of sustainability research, Morningstar, commented:

'More than ever, sustainability-focused investors should be discerning when selecting asset managers as ESG integration practices, resources, and active ownership activities can vary significantly. Many firms have improved their practices over the past couple of years, raising the bar for the industry overall. Some have ramped up their efforts faster or to a greater extent than others, and this is reflected in the higher number of upgrades this time round and more firms rated at Advanced. Almost a third of the 97 asset managers in our coverage now earn a Morningstar ESG Commitment Level of Advanced or Leader.'

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