Morningstar’s New Framework for Sustainable Investing

Over the past two years, we’ve seen a significant increase in clients’ openness to talking about impact and values in relation to investments and portfolios. More people are wanting to have the hard conversations that let them more closely live out their values in all aspects of their life.

In these conversations, it helps to have clear frameworks. That way everyone is sure that terminology aligns with desire across the full scope of potential action. Recently, Morningstar introduced a conceptual framework that does this better than any we’ve seen so far. Here’s a screenshot to give a flavor for the ideas involved:

If you’re interested in ESG, impact and other sustainable-investing topics, I recommend this article by Jon Hale, which introduces the new Morningstar Sustainable Investing Framework. Hale is director of sustainability research in the Americas for Sustainalytics, a subsidiary of Morningstar and one of the main data providers active in the ESG space.

Click here for a brief overview
Click here for the complete white paper

As you read, remember that sustainable investing doesn’t have to be all or nothing. There’s no need for wholesale changes. But there may be steps you’d like to take to further align your portfolio with your values. We look forward to discussing how.