Morningstar Sustainalytics

The latest Global Sustainable Fund Flows report is out now! Hortense Bioy, CFA and team break down recent activity in the global sustainable fund universe, detailing regional flows, assets, and launches for the fourth quarter of 2024.

At US companies, there are more shareholder proposals than ever targeting environmental and social (E&S) issues. When it comes to sustainability-focused shareholder resolutions, responsible investors want their sustainability ambitions reflected in proxy voting decisions. This latest report from Lindsey Stewart, CFA, Director of Stewardship Research and Policy, analyzes data from the 2024 proxy voting seasons and compares it with previous years. It shows that asset managers’ backing for E&S proposals hit a five-year low in 2024. Investors who want their fund manager’s proxy voting decisions to reflect higher sustainability ambitions must remain vigilant. They should pay careful attention to their manager selection, fund selection, and keep up with specific voting policies. Readers of this report will learn how: 📉 The number of sustainability resolutions with significant shareholder support fell in 2024. ✂️ After 2023’s reductions, more US firms cut support for significant E&S resolutions. 🗽 Falling support for significant E&S resolutions is specific to large US asset managers. 💶 European firms’ support for significant E&S resolutions remains very high. Download the report to learn more: http://spr.ly/6046xdNmO #stewardship #proxyvoting #responsibleinvesting #ESG #agm

In the US, the number of patients using GLP-1 treatments for nondiabetic purposes has increased 700% since 2019. In her recent article, Pandora Molly Zilstorff writes about the potential risks related to this class of drug that investors should consider. Using insights from Morningstar Sustainalytics ESG Risk Ratings and Morningstar Equity Research, she also highlights the companies poised to capitalize on the rise of GLP-1 medications. Read the full article here: http://spr.ly/6044xZ6Fs

2025 will be a year of challenges and opportunities for investors, with key trends like climate investing and new regulatory frameworks reshaping the landscape. 🌱 ⚖️ Join us on February 4, 2025, at 9:00 a.m. CET/ 4:00 p.m. EST for a complementary webinar, "Putting Sustainability to Work in 2025." Our panel of research leaders will provide expert analysis on: 💡 The first year of CSRD reporting 💡 Opportunities in the sustainable bond market 💡 A recap of the 2024 fund landscape and what to expect in 2025 📅 Secure your spot to gain the insights you need to stay ahead this year: http://spr.ly/6041xZ6of Barbara Lambotte, Hortense Bioy, CFA, Martin Vezér, PhD, Dora Batoudaki, CESGA #ESG #sustainability #climatetransition

Check out Morningstar Sustainalytics' Matt McGlinchey's interview on the Global Risk Community podcast 🎧👇🏽

Join research leaders from Morningstar Sustainalytics on February 4, 2025, at 9:00 a.m. CST/4:00 p.m. CET for, "2025 ESG Trends: Putting Sustainability to Work" Register here: http://spr.ly/6045x14qF The coming year promises to be a turning point for ESG and sustainable investing. With the first reporting cycle under the CSRD in the EU and an increased focus on financing the climate transition, investors must be prepared to adapt to a rapidly evolving landscape. This insightful webinar will explore key themes such as: ⚖️ The regulatory impact of CSRD's first year 📈 Opportunities in sustainable bond markets 🌱 Trends in climate investing 📁 A review of the 2024 fund landscape and a look ahead to 2025 #sustainableinvesting #ESG #regulations #climatetransition

At Meta’s 2024 AGM, a shareholder proposal requested annual reporting on child safety efforts on its platform. While reported shareholder support was 19%, our research estimates non-affiliated shareholder support to be closer to 60%. With CEO Mark Zuckerberg’s Class B shares controlling 61% of voting power, the board's recommendation to reject all shareholder-sponsored proposals — including this one — prevailed. Our latest stewardship report, “Shareholder Democracy and the Challenge of Dual Class Share Structures: How Unequal Voting Rights Influence Proxy Voting Outcomes and Corporate Governance” investigates this critical issue regarding dual class share structures. They give some of a company’s shareholders superior voting rights, while contradicting shareholder democracy: the principle of one share, one vote. Using 2024 proxy season data, authors Ignacio García Giner, Senior Analyst, Stewardship; Matteo Felleca, Analyst, Stewardship; and Jackie Cook, Director, Stewardship, Product Strategy & Development; examine how such structures can distort shareholder democracy and obscure proxy voting signals. Discover insights on: 🚫 Some of the conflicting views on dual class share structures. 🗳️ How dual class share structures obscure proxy voting signals. 🔎 How clearer voting disclosures would strengthen accountability and limit systemic risks. Download the report to learn more: http://spr.ly/6040a7oee

🎧Listen to Michelle Cameron's interview on the latest episode of FS Sustainability's podcast. 👇🏽