• Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics

• Kilian Theil, Associate Director, Intelligent Process Automation, Morningstar Sustainalytics
• Andrei Hera, Senior Manager Data Science, 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 podcast@sustainalytics.com 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
• Supply Chain Incidents: Understanding the Impacts
• Unlocking Human Rights in Corporate Supply Chains
• Biodiversity in the Balance: Hedging Portfolio Risks

• 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 podcast@sustainalytics.com 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 
• Big Food’s Broken Promises: The Data Behind the Food Industry’s Rising Emissions 
• CSRD Reporting: Preparing for Mandatory ESG Disclosure Deadlines 

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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 podcast@sustainalytics.com.    

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  
• Implications of CSRD: What the Final Standards Mean for Investors and Issuers 
• ESG Stewardship: A Powerful Tool to Mitigate Greenwashing Risks 

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