This ground-breaking series is the result of a strategic partnership between Morningstar Indexes, the fastest-growing global index provider in the world, and Morningstar Sustainalytics, a leading provider of ESG ratings, research, and data.

With the launch of the Morningstar Low Carbon Transition Leaders IndexesTM, investors seeking to place money in businesses from a variety of industries that are setting the standard for readiness and action in the shift to a low-carbon economy are to be assisted. Concrete, forward-looking criteria, like the Sustainalytics Low Carbon Transition Ratings, which identify businesses making notable progress toward net-zero alignment, serve as the foundation for these indexes.

Leading the way in providing unbiased investment insights is Morningstar. For investors looking to make wise choices in a changing market environment, Morningstar offers a wealth of resources by utilizing its experience in global indexing, research, and ESG ratings.

Investors now have a way to find and fund businesses that are leading the way in the climate transition thanks to the Morningstar LCTL Indices. The indexes highlight the top 50% of companies in each sector by market size by classifying companies from the parent index by sector and ranking them according to their composite Low Carbon Transition Leaders Score.

This method considers both the management score from the Sustainalytics Low Carbon Transition Ratings and the company's existing carbon intensity. Additionally, the indexes give preference to businesses that actively disclose and lower their carbon emissions as well as those whose operations have a beneficial environmental impact.

Being listed in these indices shows that a company is leading the way in climate change activities compared to its rivals. Notable instances include Orsted, Denmark's top energy firm and a global leader in decarbonization, and Taiwan Semiconductor Manufacturing firm (TSMC), the largest semiconductor chip maker in the world.

Investors, whether seeking investment opportunities or managing investment risk, are concentrating on the growing market impact of climate change. Our clients seek an easy-to-use and clear method for locating and funding the businesses most likely to prosper in this situation. According to Rob Edwards, global director of ESG product management at Morningstar Indexes, "Our Low Carbon Leaders are businesses with management that understand how to evolve their business in this context to protect and grow their market share and innovation."

"Our clients are attempting to gain a better understanding of the ways in which markets and companies will be impacted by the shift to a low-carbon economy, while also navigating an increasingly complex investment landscape." In order to distinguish between businesses who are making efforts to lower greenhouse gas emissions and are well-positioned to prosper in a low-carbon economy, and others that might fall behind, they are requesting improved indexes, tools, and analysis.

Anya Solovieva, Director of Global Commercial Strategy at Morningstar Sustainalytics, said, "Our clients can apply a forward-looking climate transition risk lens to their global portfolios and invest in leaders across all sectors by incorporating our Low Carbon Transition Ratings within an index methodology."