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The ability to outperform traditional benchmarks while pursuing sustainability initiatives has often seemed an elusive goal for investors. Using the Morningstar Analyst Rating together with the newly launched Morningstar ESG Commitment Level, investors can now identify funds that deliver the best of both worlds.

What is the Morningstar ESG Commitment Level?

To help investors understand where a strong environmental, social, and governance approach fits within a fund’s broader investment objectives, we debuted the Morningstar ESG Commitment Level in November 2020. The ESG Commitment Level is a qualitative measure of the extent to which asset managers and funds incorporate ESG considerations into their investment processes. The scale runs from best to worst as follows: Leader, Advanced, Basic, and Low.

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