Morningstar, an investment research firm, has launched Morningstar Global Sustainable Activities Involvement Indexes (SAI).
According to ESG Today, the SAI is a new suite of benchmarks aimed at providing investors with exposure to firms with revenues aligned with specific UN Sustainable Development Goals across environmental and social themes.
Index participants in the new SAI series must have significant revenue aligned to one or more impact themes. Index weightings are tilted towards companies with the greatest percentage of revenue derived from SDG-aligned activities, to strengthen the index exposure to the environmental and social impact themes.
Morningstar Indexes Head of ESG Strategy Thomas Kuh said the launch of the new impact-focused index series comes as investors’ sustainable investing focus evolves “beyond simply measuring ESG risk.”
“Investors are asking for more sophisticated tools to measure the impact that their assets are having on the environment and, more broadly, on society,” said Kuh.
The suite launches with five indexes targeting specific impact themes, such as human development, resource security, climate action, healthy ecosystem and basic needs.
The ESG and revenue screens utilized by the new indexes are based on the ESG Impact Framework of Morningstar company Sustainalytics.
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