Host: 

Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics 

Guest: 

It’s the start of a new year, a time when many focus on setting new goals and ambitions. In this episode of ESG in Conversation, we explore the resolutions investors and issuers might make when it comes to ESG, climate transition and regulatory issues. Experts from Morningstar Sustainalytics weigh in and share their predictions on what financial market participants will, or should, focus on in the year ahead.  

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected] or take this short survey. 

00:00:00 

Introduction 

00:00:35 

Thomas Kuh discusses asset owners 

00:05:43 

Catalina Secreteanu discussion ESG risk and opportunities 

00:08:35 

Anne Schoemaker discusses regulations 

00:12:52 

Azadeh Sabour discusses climate transition finance

00:21:58 

Lindsey Stewart discusses stewardship 

00:26:03 

Barbara Lambotte discusses sustainable fixed income 

00:30:59 

Closing remarks 

Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics 

This year, ESG in Conversation examined the sustainability and climate issues that were top of mind for asset owners, asset managers, companies and financial market participants globally. Featuring insights from Morningstar Sustainalytics, listeners heard from subject matter experts on ESG, climate and regulatory issues affecting the market. In this episode, we share some key insights from this past season. Check out the full episodes via the links below and subscribe to the show on your favorite podcast app to hear what’s on the horizon in the year to come.  

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected]. 

00:00:00 

Introduction 

00:00:30 

Asset owners share their voice 

00:02:48 

The AI revolution comes to ESG 

00:07:00 

Climate disclosure rules come to the US 

00:10:10 

Harmonizing sustainability regulations remains a challenge 

00:16:36 

Insights on leveraging ESG ratings in portfolio construction 

00:19:50 

Closing remarks 

00:20:49 

The last word 

• Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics 

• Aymen Karoui, Director of Methodology and Product Architecture, Morningstar Sustainalytics

How can ESG ratings help investors identify risk when constructing and maintaining their portfolios? In this episode, we explore the practical answers to this question and more. We also feature research leveraging Sustainalytics’ Low Carbon Transition Ratings and Physical Climate Risk Metrics assessing companies' misalignment with the transition to net zero.  

We also discussed COP 16, which is focused on biodiversity and the key role of the private sector in addressing biodiversity loss. A recent article using data from our Biodiversity and Natural Capital Stewardship program found that many companies are at the beginning of their journeys. 

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected]. 

00:00:00 

Introduction 

00:01:07 

Interview with Aymen Karoui about Morningstar Sustainalytics report series in collaboration with Natixis exploring the ESG Risk Ratings and portfolio risk 

00:19:51

Overview of the “Navigating Material Climate Risks in the Global Equities Market” report 

00:20:57 

Overview of “Mobilizing the Private Sector for COP16: A Critical Juncture for Biodiversity Action” 

00:22:29

Highlights of upcoming Morningstar Sustainalytics events

• Report series with Natixis  

• ESG Risk Ratings: A 360° Review

More episodes

• Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics 

• Arthur Carabia, ESG Research Policy Director at Morningstar 

On the heels of the EU parliamentary elections and ahead of pivotal contests in the U.S., the U.K. and elsewhere, ESG in Conversation met with Director of ESG Policy Research, Arthur Carabia to discuss what a change in political agendas and shifting priorities could mean for ESG and sustainability-focused regulations globally.  

We also explore the topic of ESG materiality and what it means to asset owners globally, and we discuss its foundational role in the enhancements to Morningstar Sustainalytics' ESG Risks Ratings and corporate governance assessment framework.  

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected]. 

00:00:00 

Introduction 

00:01:34 

Interview with Arthur Carabia about EU election outcomes and the state of ESG regulatory landscape 

00:25:14 

Overview of the Voice of the Asset Owner Survey 2024 

00:26:34 

Updates on Sustainalytics’ corporate governance assessment framework 

00:28:14 

Introduction to “Fundamentals of ESG Materiality: An Overview for Investors” 

• Voice of the Asset Owner Survey 2024: Qualitative Insights 

More Episodes

• Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics

• Arthur Carabia, ESG Research Policy Director at Morningstar

In late March, the U.S. Securities and Exchange Commission introduced a climate disclosure rule that applies to its 10,000 registrant companies. In this episode of ESG in Conversation, we welcome back Arthur Carabia to shed light on what this new rule means for companies and their investors. He also shares his take on how the rule compares to other sustainability and climate disclosure regulations globally. 

Sticking to the regulatory theme, you’ll learn about the EU’s regulations on deforestation-free products and why the issue of environmental regulation is so significant across industries according to our ESG Risk Ratings. 

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected] or take this short survey.  

• The SEC’s Climate Disclosure Rule: A Step in the Right Direction

More Episodes

• Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics 

• Kilian Theil, Associate Director, Intelligent Process Automation, Morningstar Sustainalytics 

In recent years the marvels of artificial intelligence have been touted across various sectors. As applications of AI technology proliferate, in this episode of ESG in Conversation we chat about how it’s being used in the ESG research space. Members of Morningstar Sustainalytics data research and development teams discuss how the company has been leveraging AI technologies for the past decade and what’s on the horizon in terms of gathering and analyzing corporate ESG risk data.   

You’ll also learn more about ESG risks in global supply chains as we share insights from our recently published ESG Spotlight series. The reports explore the impact of supply chain incidents, with a focus on human rights and biodiversity loss. They also offer investors frameworks for assessing supply chain-related risks among portfolio companies and potential strategies to improve portfolio performance and mitigate losses.   

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected] or take this short survey.

00:00:00 

Introduction 

00:01:17 

Interview with Kilian Theil and Andrei Hera on how AI is changing the world of ESG research and assessments  

00:20:52 

Overview of the ESG Spotlight series on ESG risks in supply chains 

• Artificial Intelligence for ESG Assessments 

• Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics

• Thomas Kuh, Head of ESG Strategy, Morningstar Indexes 

In this episode of ESG in Conversation, Thomas Kuh, Head of ESG Strategy at Morningstar Indexes shares the results from Morningstar Indexes and Morningstar Sustainalytics’ Voice of the Asset Owner Survey. Not surprisingly, asset owners are concerned about the influence of global events on the market. They are confused about ever-changing regulations and are seeking improvements and reliability from ESG service providers. Despite these challenges, asset owners also say they remain committed to sustainability and are putting more resources towards their ESG strategies.  

You’ll also learn more about the low-carbon transition risks facing some of the world’s biggest food companies and the steps they can take to get their emissions reductions back on track. Finally, the start of 2024 brings new sustainability-focused regulations. The Corporate Sustainability Reporting Directive (CSRD) came into effect in the European Union on Jan. 1 and will apply to nearly 60,000 companies globally. The directive could be a watershed moment for corporate reporting as well as investors seeking more sustainability data from issuers.  

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected] or take this short survey.   

00:00:00 

Introduction 

00:01:30 

Interview with Thomas Kuh discussing asset owners’ views on ESG investing  

00:10:52 

Insights on the low-carbon transition risks of major food companies and how they can reduce emissions 

00:12.33 

Details on the Corporate Sustainability Reporting Directive  

• Voice of the Asset Owner 2023: Quantitative Analysis 

More Episodes

Melissa Chase, Senior Content Marketing Manager, Sustainalytics 

Ruthann Bartello, Commercialization Director, Stewardship Services 

Greenwashing is a growing concern among financial market participants. Whether it’s measuring the sustainability performance of companies in a portfolio or ensuring that their own firms and offerings are not making exaggerated claims about their sustainability impacts, asset managers are on the lookout for potential greenwashing risks. Adding to the confusion is a lack of clarity around what defines a sustainable investment, as well as the growing list of regulations and reporting frameworks asset managers need to comply with.  

In this episode, we discuss the European Sustainability Reporting Standards, the cornerstone of the Corporate Sustainability Reporting Directive, which should pave the way for more accessible and standardized corporate sustainability information. You also hear from Morningstar Sustainalytics’ Ruthann Bartello about the key strategies investors can use to mitigate greenwashing risks in their investment products and across their portfolios. 

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected].    

00:00:00 

Introduction 

00:01:50 

Morningstar Sustainalytics new ebook “Seeing Through the Green: As Guide to Greenwashing Risks for Asset Managers”  

00:03:00 

The final Corporate Sustainability Reporting Directive and its standards are published 

00:4:09 

Investor stewardship as a tool to combat greenwashing.  

00:5:30 

Interview with Ruthann Bartello on key strategies institutional investors can use to address greenwashing 

00:06:07 

Greenwashing explained 

00:08:15 

Investor concerns around greenwashing 

00:09:58 

What’s behind investors’ concerns 

00:11:35 

Consequences of greenwashing for investors 

00:15:05 

Key regulations related to greenwashing 

00:19:31 

Strategies for asset managers to mitigate against greenwashing risks 

00:20:23

Tips for asset managers to build a robust investment strategy 

00:24:49 

Final thoughts 

Links to Select Resources 

• Seeing Through the Green: As Guide to Greenwashing Risks for Asset Managers  

More episodes

• Melissa Chase, Senior Content Marketing Manager, Sustainalytics 

• Arthur Carabia, Director, ESG Policy Research, Morningstar 

We are excited to share with you the revamped ESG in Conversation! In this new format, we’re expanding the focus beyond sustainable finance to share the latest environmental, social and corporate governance insights. In addition to highlighting recent research from our global team of ESG experts, we will continue to bring you deep dives into the ESG, climate, impact, sustainable finance and regulatory insights you need to know about. 

In this episode you’ll learn about the upcoming greenhouse gas reporting requirements for companies in North America, the implications of Europe’s policy response to the climate crisis, the Fit for 55 package, and what it means for companies that supply goods and services in the EU.    

Also, Morningstar’s Arthur Carabia discusses what the recently published International Sustainability Standards Boards reporting standards mean for companies and investors. 

Please take a moment to share your thoughts on ESG in Conversation. You can email us at [email protected].    

00:00:00 

Introduction 

00:01:45 

Greenhouse gas emissions requirements for North American companies 

00:03:50 

Interview with Arthur Carabia about the launch of the ISSB standards 

00:10:40 

Highlights of the EU’s Fit for 55 legislation 

• Mandatory Scope 3 Emissions Reporting in the U.S. and Canada: Most Companies Are Unprepared 

More Episodes

In this episode of ESG in Conversation, we’re exploring the question: what does it take to be a sustainability leader in 2023 and beyond? You’ll hear from Joseph Hill, London Techstars alumn and CEO of Zephframe, about the sustainability challenges facing start-ups. You’ll also hear from Eileen Buckley, VP of Corporate Responsibility at Stryker, about the importance of integrating sustainability across an organization. Gabriel Presler, Global Head for Enterprise Sustainability at Morningstar, also joins in to discuss the role investors play in sustainability leadership.