Name: Distilling the ESG Signal for Enhanced Performance and Downside Protection
Start: 2024-06-20T14:00:00Z
End: 2024-06-20T14:01:00.000Z
Location: BrightTALK
Rating: 4.4

ESG, climate, and sustainable investing insights. Stay ahead of changing regulations. Morningstar analysts share their insights on material ESG risks, sustainability reporting, and more. 

Climate aligned investment frameworks are gaining traction to help investors implement climate integration more effectively. The IIGCC’s Net Zero Investment Framework (NZIF) 2.0 has become a widely adopted guidance for aligning portfolios with the climate transition. By setting portfolio-level decarbonization objectives, defining asset-level targets, and evaluating company transition plans, NZIF 2.0 helps investors integrate climate considerations directly into investment strategy and capital allocation decisions. 

Yet many investors still face challenges: data gaps, fragmented disclosures, and the difficulty of distinguishing real progress from ambitious pledges. Institutional investors increasingly want practical tools and strategies to identify which companies are taking measurable steps, through capital expenditure, technology deployment, and climate-aligned revenues, to strengthen portfolio resilience.  

Morningstar Sustainalytics is pleased to host this webinar for asset managers and asset owners exploring or applying climate-aligned approaches such as NZIF 2.0. The IIGCC will share their perspective on the framework’s evolution, market uptake, and the progress achieved to date. Morningstar Sustainalytics will highlight insights from engagements with leading institutions worldwide on integrating climate data into investment processes and reporting. We will also feature the perspective of the asset manager Nykredit, offering first hand experience with NZIF implementation in terms of what has worked, the challenges faced, and practical approaches. 

Webinar Speakers:
- Elena Vydrine, Senior Investment Specialist - Public Markets, IIGCC 
- Alicia White, Senior Product Manager, Climate Solutions, Morningstar Sustainalytics 
- Rune Riisbjerg Thomsen, Head of Sustainability & Stewardship, Nykredit
- Moderator: Tara McHugh, Director, ESG and Climate Consultants, Morningstar Sustainalytics

Exploring Practical Approaches to Climate Investment Integration

Controversies can be costly—not just financially, but also in terms of reputation, stakeholder trust, and long-term impact. Yet, many organizations and investors struggle to assess the true materiality of these events, leaving them vulnerable to unforeseen risks.

Join us for an insightful webinar where we’ll dive into the complexities of controversies research and the recent enhancements Morningstar Sustainalytics rolled out to provide actionable strategies to identify ESG controversies.

Our experts will cover: 
- Evidence of Costly Controversies: Real-world examples that highlight the duality of financial risks and impact. 
- Risk Factors and Assessments: How to identify and evaluate potential risks before they escalate. 
- Financial Materiality of Events: Understanding the costs of controversies. 
- Impact on Stakeholders: Exploring the scale, scope, and remediation elements. 
- Customizing Risk Thresholds: Learn how to select the relevant risk and impact signals using our solution. 

This webinar addresses key challenges in navigating controversies, from unclear financial materiality and risk assessment difficulties to aligning impact thresholds with organizational goals. Gain actionable insights to proactively manage risks and safeguard your reputation and bottom line.  

Register now to gain actionable insights!

Controversy Ratings in the Age of Double Materiality

The ‘Great Wealth Transfer’ refers to the estimated $84 trillion set to be passed down over the next 20 years, and it is already reshaping the future of wealth management. Nearly half (46%) of wealth managers see this shift as an existential threat to their business. In a landscape increasingly influenced by robo-advisors and DIY investing tools, gaining a competitive edge is more critical than ever. Our solutions can help you attract new clients, build lasting loyalty, and stand out to the next generation of investors. Join us to explore how values-based investing can help you grow and retain your business using Morningstar Direct and Sustainalytics’ data and solutions. We'll examine the current market landscape and share how you can leverage our independent research, broad data coverage, and advanced portfolio management and reporting tools to create compelling, client-centric narratives. Discover how to meet values-based investing mandates while clearly differentiating your offering in today’s competitive environment.

Navigating the Great Wealth Transfer with Values-Based Investing

How are evolving EU priorities—from defense to the Green Deal—impacting your investment decisions? 
Join Morningstar Sustainalytics' experts to gain valuable insights into navigating EU ESG rules and defense financing priorities. 

Topics we will explore:
• EU ESG Regulations for Defense Investments
Gain a clearer understanding of ESG rules related to investing in defense. 
• ESG Risks in Defense Companies and ESG Fund Positioning
Gain insights into the ESG risks in the defense sector and ESG funds’ exposure.
• Controversial Weapons
Distinguish controversial weapons from other military and defense sector involvements.

Stay updated and prepared. Register for the webinar today to secure your spot!

Navigating EU ESG Rules and Defense Financing Priorities

The ‘Great Wealth Transfer’ refers to the estimated $84 trillion set to be passed down over the next 20 years, and it is already reshaping the future of wealth management. Nearly half (46%) of wealth managers see this shift as an existential threat to their business. In a landscape increasingly influenced by robo-advisors and DIY investing tools, gaining a competitive edge is more critical than ever. Our solutions can help you attract new clients, build lasting loyalty, and stand out to the next generation of investors. 

Join us to explore how values-based investing can help you grow and retain your business using Morningstar Direct and Sustainalytics’ data and solutions. 

We'll examine the current market landscape and share how you can leverage our independent research, broad data coverage, and advanced portfolio management and reporting tools to create compelling, client-centric narratives. Discover how to meet values-based investing mandates while clearly differentiating your offering in today’s competitive environment.

As the EU Taxonomy and SFDR reporting requirements evolve, staying ahead of regulatory expectations is critical. How can you streamline reporting and overcome common challenges? 

Join Morningstar Sustainalytics' experts for a practical walkthrough of some of our key solutions, designed to help investors and financial professionals meet their EU Taxonomy obligations with ease. In this session, we will: 

- Address key investor challenges, including data quality, estimation methodologies, and reporting burdens 
- Provide a live demo of our EU Taxonomy solution, showcasing how to efficiently navigate regulatory data 
- Offer insights on entity-level reporting and portfolio aggregation 
- Answer your questions in a Q&A session 

Regulatory complexity doesn’t have to slow you down. Gain practical strategies and tools to confidently meet your EU Taxonomy and SFDR reporting requirements.

Navigate the EU Taxonomy with Confidence: Practical Demo for Investors

Dive into the top trends shaping the future of ESG. Hear from the authors of the newly published reports “10 for 2025” and “Key ESG Investing Trends to Watch in 2025” to gain key insights on the intersection of ESG trends and the investment landscape.   

Key Topics Include:  

- The first year of reporting for the Corporate Sustainability Reporting Directive (CSRD)  
- The rise of climate finance and the transition to a low-carbon economy  
- How interest rates and the need to finance the climate transition could affect the sustainable bond market  
- A look back at 2024’s sustainable fund landscape and the outlook for 2025 

Moderator: Martin Vezér  

Speakers:  

Theodora Batoudaki, Senior ESG Research Manager, Banks
Hortense Bioy, Head of Sustainable Investing Research   
Arthur Carabia, ESG Policy Research Director   
Barbara Lambotte, Sustainalytics Research and Methodology

2025 ESG Trends - Putting Sustainability to Work

As stewards of some of the largest pools of capital in the world, Asset Owners play a critical role in shaping strategy and considerations for investment management. Morningstar’s Voice of the Asset Owner Survey was created to better understand the motivations, challenges and attitudes of institutional asset owners amid a rapidly changing global investment landscape.  

Join us for a live webinar with our experts for a deep dive into what’s on the minds of asset owners, with focus on key considerations such as: 
- Every asset owner surveyed is allocating at least a portion of their assets to strategies taking ESG factors into account 
- Climate transition readiness remains the most material environmental factor, with labor practices and business ethics headlining material concerns for social and governance, respectively 
- Globally, 78% of asset owners surveyed view active ownership and engagement useful in driving the implementation of ESG 

Speakers: 
Thomas Kuh – Head of ESG Strategy, Morningstar Indexes 
Arnold Gast – ESG Research Director, Morningstar Sustainalytics 
Paul Schutzman - Head of Client Solutions, Institutional Investors  
Catalina Secreteanu, (Moderator)Managing Director, ESG Solutions, Europe

Insights from the 2024 Voice of the Asset Owner Survey

Material ESG concerns such as severe weather events from climate change, supply chain disruption, nature and biodiversity loss, data privacy concerns and more have real-world implications for business and finance. Different materiality frameworks (single, double and dynamic) can help investors assess both the risks to financial performance and impact that companies have on their environment and society.

What to expect:

- Explore how materiality frameworks have evolved and how they impact investment strategies, from single to double and dynamic
- The data investors need to effectively assess and integrate risks and opportunities 
- How varying segments might utilise different approaches in their strategy and address different priorities 
- How emerging regulation such as CRD, CRFD may impact approaches and strategy

Join us for a thought-provoking webinar with sustainability professionals from the financial services industry. We will discuss, compare and contrast approaches, and how the advent of regulation and improved access to data may change the ESG landscape, enhancing reporting, improve stewardship outcomes, and more.

Speakers :
- Bjorn de Smedt, Climate Change Specialist,  First Sentier Investors
- Amanda Yap, Head of Sustainability, Fullerton Fund Management

Moderated by:
- Michelle Cameron, Commercial Leader, Morningstar Sustainalytics, AU & NZ

[APAC Webinar] Single, Double, or Dynamic? An Exploration of Materiality in ESG Investments

The Stockholm Resilience Centre states the global economy is currently operating outside the safe zones for six of nine planetary boundaries, and ecosystem services are not appropriately priced by global markets.  
  
As a result, there are growing expectations from governments, investors, and society at large for the private sector to take accountability for its contributions to biodiversity loss.   

How can investors appropriately assess portfolio risks from biodiversity loss such as deforestation and species extinction, and engage to manage these risks and benefit from opportunities through effective stewardship?   

Join experts from Morningstar Sustainalytics and institutional investors to discover:  
     - What is biodiversity and how does it connect to climate and human rights? 
     - What are the financial risks associated with biodiversity and nature-related loss? 
     - How and why stewardship can lead to improved investment outcomes. 
     - A real-world example how this works in practice. 

Speakers:  
Lindsey Stewart (Moderator), Director of Investment Stewardship Research  
Ruby Jeng, Senior Analyst, Stewardship, Morningstar Sustainalytics  
Dr.Dai Yamawaki, Senior ESG Investment Manager, Nomura Asset Management  
Kaboo Leung, Active Ownership Specialist, NN Group

Register now to reserve your space and learn more about this pressing and emerging topic in the region.

The Value of Nature: Biodiversity, stewardship, and thematic engagement in a connected financial landscape

In a world where sustainable investing is rapidly becoming the standard, the ability to effectively harness ESG data is critical. Yet, the path from data to actionable insight can be complex. Challenges such as data fragmentation, inconsistent reporting, and information overload often hinder organizations from fully realizing the potential of ESG data. 

Join us for an in-depth session designed to equip you with the tools and insights necessary to navigate these challenges. This webinar will feature a demo of Morningstar Sustainalytics' ESG data solutions, providing you with a practical understanding of how our tools can be leveraged for portfolio construction, investment selection, screening, screening and monitoring, and more.  

During this session, you will: 
- Gain insights into the evolving landscape of ESG data and the critical role it plays in sustainable investment. 
- Engage in a demonstration of our solutions, where we’ll walk you through the most impactful features. 
- Explore our Company Landing Pages, offering a comprehensive view of ESG risk profiles, including detailed performance metrics, historical data, and peer to peer comparisons. 
- Discover how our advanced Reporting and Analytics Tools enable you to assess ESG risks across portfolios, apply custom screening criteria, and generate tailored reports. 
- Learn from examples of organizations that have successfully leveraged our tools to drive long-term value creation. 

This demo is crafted to give you first-hand knowledge of how our ESG Data solution can be a catalyst for informed decision-making. We will conclude with a Q&A session to address your specific questions and concerns.

Enhance portfolio management with ESG Data

2024 is shaping up to be a banner year for ESG regulation, with many reporting deadlines in play. How can you turn regulation from a reporting burden into an opportunity for differentiated product creation, and what does the future hold for the regulatory landscape?  

In this virtual “ask me anything” event, our regulatory experts will be on hand to share insights on the current state of the regulatory landscape, addressing greenwashing, and a practical walkthrough of how to leverage data with a company example.  
 
After a quick panel conversation, the floor is yours! Send your questions in advance or ask us anything on the call. This is a rare opportunity to ask all your burning questions on the regulatory landscape and how Sustainalytics’ regulatory solutions can meet your needs. 

Presenters:  
Ruthann Bartello, Director, Product Strategy, Morningstar Sustainalytics 
Hortense Bioy, Head of Sustainable Investing Research, Morningstar Sustainalytics 
Lisette Brackel, Senior Product Manager, Morningstar Sustainalytics 
Arthur Carabia, ESG Research Policy Director, Morningstar Sustainalytics

Submit your questions in advance:  

https://forms.office.com/Pages/ResponsePage.aspx?id=-wLT0u8Kc0eUpXlQxvZKNWFM1BmtmvNCmZ2_GDohHxVUQzhPV1NXWEFUODJJTUJFQkNLS1RHSEoxUi4u

Beyond Regulatory Reporting: An Ask Me Anything with Sustainalytics’ Regulatory Experts

The Water Use – Supply Chain Material ESG Issue (MEI) focuses on how companies utilize water and manage associated risks within their production processes and supply chains. The sustainable utilization of freshwater, a finite natural resource, gains significance amidst escalating global water scarcity. Projections from the United Nations warn of a potential 40% water deficit by 2030. 

Identifying Risks: Factors Contributing to Water Vulnerabilities 
Water risks predominantly arise from a company's reliance on water for internal processes and raw material production. Sectors such as mining, agriculture, and semiconductor manufacturing exhibit heightened water intensity. 

Navigating Geography: Contextualizing Water Risks 
Assessing a company's water risks necessitates consideration of its facility and supplier locations. Factors influencing water availability encompass water reserve presence, permit requirements, water network quality, and local water demands. 

Hotspots of Concern: Focusing on Water-Stressed Regions 
Particular attention is warranted for companies operating in water-stressed areas like portions of Chile, the United States, and Australia, where water scarcity exacerbates risks. 

Stewardship Strategies: Mitigating Water-Related Risks 
Companies committed to water stewardship are better equipped to mitigate water risks. Embracing an adaptive business model entails water risk assessments, supplier and community engagement, and the implementation of water recycling systems.

Water Scarcity and Sustainable Usage

The Raw Material Use Material ESG Issue (MEI) focuses on a company's efficient utilization of raw material inputs (excluding energy and petroleum-based products) in production, along with the effective management of associated risks. 

The Growing Importance of Raw Material Use: A Key Component in Decarbonization 
- The demand for raw materials is set to nearly double by 2050 due to population growth, rising living standards, and the low-carbon transition that will see widespread and increasing use of low-carbon technology. While physical scarcity serves as the upper limit of raw materials availability, accessibility issues related to the unequal spread of raw materials across countries and high cumulative demand for raw material inputs are becoming more prevalent. 
Although global market trade in commodities can overcome availability issues for raw materials that cannot be sourced locally, it also introduces a slew of factors that heighten environmental, social and corporate governance (ESG) risks. 
 
Subpar sovereign governance practices (bribery and corruption) and geopolitical tension (trade disputes, export bans or conflict) provide another dimension of risk, particularly where raw materials are supplied by only a few commodity-producing nations. 
 
Transparent and responsible production of raw material inputs is essential to de-risk investments.

Efficient Raw Material Use: A Key Environmental Focus

The Resilience Material ESG Issue (MEI) emphasizes financial stability and risk management in the financial services industry, particularly focusing on compliance with capital requirements. 

The Legacy of the 2008 Financial Crisis 
- Financial institutions must ensure resilience to avoid external costs to society in the event of bailouts funded by taxpayers. 

Regulators have strengthened global capital and liquidity standards post-2008 crisis, examining capital buffers amid ongoing challenges like the Covid-19 pandemic.  

Evaluating Risk Management Practices 
- Morningstar Sustainalytics' ESG Risk Ratings evaluates both inherent risks and management practices related to systemic risk management and capital adequacy. 

Regulatory changes post-2008 crisis highlight the importance of bank resilience. Utilizing our ESG Risk Ratings framework, investors can identify companies managing these risks effectively.

Building Financial Resilience

The Product Governance Material ESG Issue (MEI) focuses on how companies manage risks related to product quality, service safety, and responsible marketing. 

Maintaining Customer Trust 
- Ensuring product safety and reliability is critical for customer satisfaction and long-term profitability. Active oversight demands access to reliable data and collaboration across the business. 

Evaluating Product Governance Risks 
- Morningstar Sustainalytics' ESG Risk Ratings assess product governance risks, combining inherent risks with those not actively managed due to lacking programs and policies. 

As awareness of product governance risks grows, companies face increased scrutiny. Morningstar Sustainalytics' ESG Risk Ratings help investors identify companies managing these risks effectively.

Prioritizing Product Quality and Safety

The ESG Integration – Financials Material ESG Issue (MEI) encompasses all ESG integration activities in financial institutions, spanning investments, lending, and product offerings. 

Meeting Global Investment Goals 
Initiatives to integrate ESG factors into finance are driven by global sustainability goals, requiring significant private capital investment. 

Evaluating Financial Sector ESG Risks 
Morningstar Sustainalytics' ESG Risk Ratings assess ESG integration in financial institutions, considering business model risks and management practices. 

Regulators and stakeholders scrutinize companies' ESG efforts. Firms must integrate ESG considerations into business models and products while supporting clients in responsible investment practices. 

Using Morningstar Sustainalytics' ESG Risk Ratings, investors can identify companies managing ESG integration risks effectively.

Integrating ESG: Financial Sector Impact

The Occupational Health and Safety Material ESG Issue (MEI) focuses on managing workplace hazards for employees and contractors, prioritizing safety measures. 

Workplace health and safety lapses not only impact employees but also carry significant costs for businesses, as highlighted by studies like the 2020 Workplace Safety Index. 

Evaluating Occupational Health and Safety Risks 
- Morningstar Sustainalytics' ESG Risk Ratings assess occupational health and safety risks, combining inherent risks with those not addressed through systems and policies. 

The Covid-19 pandemic underscored the importance of prioritizing workplace health and safety. Morningstar Sustainalytics' ESG Risk Ratings helps investors identify companies equipped to manage these challenges effectively.

Ensuring Workplace Safety

The changing economic environment has put more strain on investors, leading to further scrutiny of the strategies and factors they use to make investment decisions. This is especially true for ESG factors, where investors are facing increased pressure from new regulations and compliance policies. As a result, investors are paying more attention to the underlying sources of performance and risk in their portfolios. In a recent study created in partnership with Natixis Investment Management Solutions, we examined the impact of ESG risk on portfolio performance and financial health. We uncover that reducing ESG risk is beneficial for performance and risk mitigation across all regions we sampled.  

Join us for a practical discussion, which explores the performance and risk attribution analysis providing actionable insights for investors constructing ESG-based portfolios.  

Learn how to effectively integrate ESG considerations while mitigating common risk factors to optimize investment strategies for a sustainable future.  

Speakers:   
- Aymen Karoui, Director of Methodology & Product Architecture, Morningstar Sustainalytics  
- Elpida Louka, Natixis Investment Managers (NIM) 
- Piotr Podgorny, Natixis Investment Managers (NIM) 
Moderator: 
- Adam Fleck, Head of Research, Morningstar Sustainalytics

Distilling the ESG Signal for Enhanced Performance and Downside Protection

climate risk

transition risk

transition plans

Risk Management

Investment Strategy

Investment Management

Asset Management

Risk Mitigation

Risk Assessment

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Distilling the ESG Signal for Enhanced Performance and Downside Protection

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