Morningstar Sustainability Rating

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Definition of 'Morningstar Sustainability Rating'

The Morningstar Sustainability Rating is a measure of how well a company is managing its environmental, social, and governance (ESG) risks. The rating is based on a company's performance in three areas: environmental, social, and governance.

The environmental score measures a company's impact on the environment, including its greenhouse gas emissions, water use, and waste production. The social score measures a company's impact on its employees, customers, and community, including its labor practices, human rights policies, and charitable giving. The governance score measures a company's corporate governance practices, including its board structure, executive compensation, and shareholder rights.

The Morningstar Sustainability Rating is a valuable tool for investors who want to invest in companies that are committed to sustainability. The rating can help investors identify companies that are taking steps to reduce their environmental impact, improve their social practices, and strengthen their corporate governance.

The Morningstar Sustainability Rating is a relatively new rating system, and it is still evolving. However, it is quickly becoming one of the most respected ESG ratings systems in the world. The rating is based on a company's performance in three areas: environmental, social, and governance.

The environmental score measures a company's impact on the environment, including its greenhouse gas emissions, water use, and waste production. The social score measures a company's impact on its employees, customers, and community, including its labor practices, human rights policies, and charitable giving. The governance score measures a company's corporate governance practices, including its board structure, executive compensation, and shareholder rights.

The Morningstar Sustainability Rating is a valuable tool for investors who want to invest in companies that are committed to sustainability. The rating can help investors identify companies that are taking steps to reduce their environmental impact, improve their social practices, and strengthen their corporate governance.

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