Sustainalytics, a provider of ESG and corporate governance research and ratings, has launched Carbon Risk Ratings, which measure exposure to and management of carbon risks at the company level.
The quantitative assessment is intended to support investment analysis, decision making and reporting. The Rating seeks to provide insights relating to investment risk that cannot be calculated through traditional carbon footprinting.
Michael Jantzi, CEO, said: “Given mounting regulatory and industry pressures around climate change, investors informed us they need deeper insights that go beyond carbon footprinting and that reflect a focus on risk and financial materiality.”
The Carbon Risk Ratings (CRR) are the foundation of the new Morningstar Portfolio Carbon Risk Score measure – which allows investors to evaluate a portfolio’s exposure to carbon risk. CRR data covers more than 4,000 listed companies across 147 subindustries.
Vikram Puppala, Sustainalytics’ associate director of Carbon Solutions, added: “A holistic view of carbon risk is required by investors today.”
“Our Carbon Risk Ratings look at unmanaged carbon risks in a company’s operations and its products and services, offering investors a lens into the material carbon risks in their investments.”