Morningstar is making the following changes to the Sustainability Rating methodology which will be effective as of the monthly calculations on November 8th, 2018:
Incorporate Historical Sustainability Scores
Expand peer groups by using Morningstar Global Categories
Increase peer group size threshold to 30 scored portfolios
Increase rating threshold to 67% of portfolio covered
We recently hosted a webinar with Madison Sargis, Associate Director of Quantitative Research, and Jon Hale, Morningstar’s Director of Sustainability Research, explaining the upcoming changes, the rationale behind them, and providing some examples to illustrate impact we expect the changes to have. We also answered a number of good questions from the audience during the session.
You can access the recording of the session here and the slides used in the webinar attached.
The updated full methodology document is available here and a corresponding FAQ attached.