Independent investment research firm Morningstar reported today that it has completed its previously announced acquisition of ESG ratings and research company Sustainalytics.
Morningstar originally announced the acquisition in April 2020. At the time of the announcement, Morningstar already held a 40% stake in Sustainalytics, acquired in 2017. The enterprise value of Sustainalytics was estimated to be EUR 170 million.
With more than 650 people around the world, Sustainalytics offers data on 40,000 companies worldwide and ratings on 20,000 companies and on 172 countries. The company’s security-level ESG Risk Ratings are a well-known benchmark among institutional asset managers, pension funds and other financial market participants integrating ESG factors into their investment processes and decision-making. Sustainalytics’ ESG research and ratings underpin numerous indexes and sustainable investment products, including Morningstar’s Sustainability Rating for funds and Morningstar Indexes.
Kunal Kapoor, Chief Executive Officer, Morningstar, said:
“Investor demand for stakeholder capitalism is driving a profound transformation in the global investing landscape. We’re excited to have our sights on this next horizon alongside Sustainalytics, a leader that has been on this road since the beginning. Together, we will lead investors of all types through this transition, empowering them with ESG insights that allow for the personalization of portfolios across asset classes.”
Morningstar stated that the addition of Sustainalytics will bring deep ESG expertise, market leadership, and an extensive suite of security-level and country-level ESG data, research, ratings, and products. In addition to supporting Sustainalytics’ existing offerings, Morningstar plans to further integrate ESG data and insights across the firm’s research and solutions for all segments, including individual investors, advisors, private equity firms, asset managers and owners, plan sponsors, and credit issuers.
Michael Jantzi, Chief Executive Officer, Sustainalytics, said:
“For more than 25 years, Sustainalytics has played a leadership role globally, influencing the way in which institutional asset managers and public pension funds integrate ESG into their investment decisions and, more recently, shaping the emerging sustainable finance market as the world’s largest second-party opinion provider for green and sustainable bond issuances. Coming together with Morningstar creates the scale to influence capital across the entire investment spectrum and make ESG a part of every investment consideration.”