Morningstar Sustainalytics has introduced its Low Carbon Transition Ratings to provide investors with a forward-looking, science-based assessment of a company’s preparedness to transition to a low-carbon economy and limit global warming to 1.5 degrees Celsius. The ratings evaluate a company’s strategy and actions toward meeting its net-zero commitments, covering approximately 4,000 of the largest public companies, and are expected to expand to over 12,500 companies by 2024. Investors can use the ratings to manage transition risks, respond to regulatory requirements and disclosure initiatives, build climate investment strategies, and engage with companies. Morningstar Indexes will also introduce a suite of global climate indexes backed by the ratings later this year.
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