Sustainability in Conversation

The Investor’s Role in Addressing Climate Change

Episode Summary Host: Catalina Secreteanu, Managing Director, ESG Solutions, Europe, Sustainalytics Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Tom Gosling, Professor in Practice, Financial Markets Group, London School of Economics Lindsey Stewart, Director, Institutional Investor Content Strategist, Morningstar On Investors’ True Impact on Sustainability In this episode of Sustainability in Conversation, we are delighted to share an intriguing and insightful conversation direct from London Climate Action Week. Friend of the show and former host, Lindsey Stewart, sat down with Tom Gosling, Professor in Practice at the London School of Economics, to discuss the investor’s role in climate transition. The conversation points toward a more pragmatic phase of sustainable investing — one centered on fiduciary duty, policy engagement, investor agency, and asset-owner leadership, rather than ambitious but difficult-to-deliver climate commitments. Additionally, Catalina shares why she’s feeling energized and inspired following a week of climate conversations with peers in London and talks about Morningstar Sustainalytics’ recently announced collaboration with XDI and Veridion to bring enhanced asset-level physical climate data to the market. Share Your Feedback Please take a moment to share your thoughts on Sustainability in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:00 Introduction 00:03:36 A conversation with Lindsey Stewart 00:07:32 A conversation with Tom Gosling 00:30:38 Sign off

Climate Transition Investing: Signals, Strategy, and Scale

Host: Catalina Secreteanu, Managing Director, ESG Solutions, Europe, Sustainalytics Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Thomas Hohne-Sparborth, Head of Sustainability Research, Lombard Odier Alex Osborne-Saponja, Director, ESG Methodology On Aligning Capital With Climate Outcomes This episode of Sustainability in Conversation focuses on investors and climate transition. We start with an insightful conversation with Thomas Hohne-Sparborth, Head of Sustainability Research at Lombard Odier. He discusses how the asset management firm’s systems-level view of climate transition informs their investment strategy, and shares what that looks like in practice. Next, we hear from Alex Osborne-Saponja, Director of ESG Methodology at Sustainalytics and co-author of Transition or Illusion? What Capital Flows Reveal About Net Zero Credibility. Alex shares insights from the report, which examines capital expenditures as a key signal of corporate climate transition credibility. She details why capex is an important indicator and highlights a “mosaic approach” to analysis, combining multiple indicators to infer transition direction. Share Your Feedback Please take a moment to share your thoughts on Sustainability in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:00 Introduction 00:03:38 A conversation with Thomas Hohne-Sparborth 00:17:14 A conversation with Alex Osborne-Saponja 00:34:00 Sign off Links to Select Resources What Capital Flows Reveal About Net Zero Credibility Climate Transition Toolkit

• Chapters

Testing Markets and Building ESG Resilience

Host: Catalina Secreteanu, Managing Director, ESG Solutions, Europe, Morningstar Sustainalytics Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Bin Dong, Lead Analyst, ESG Methodology, Morningstar Sustainalytics On the Evolution of Sustainable Investing and Constructing More Resilient Portfolios In this episode of Sustainability in Conversation, we welcome our new co-host, Catalina Secreteanu. Catalina has worked in the sustainable investment space for the past 17 years, holding roles at UKSIF and Sustainalytics in the UK and Australia. During that time, she’s had a front row seat to how the industry has evolved. She shares her thoughts on where the market has been and where it’s going, as well as the challenges and opportunities along the ways. Melissa and Catalina also sat down with Bin Dong, Lead Analyst, ESG Methodology, and author of the report “ESG Resilience in Focus: What the US-EU Divergence Means for Portfolio Performance.” Building on analysis from a previous publication, this report examines how portfolios adjusted for material sustainability factors perform under pressure in US and EU equity markets. Bin shares the most recent findings and explains how investors could leverage the insights for their own approaches. Share Your Feedback Please take a moment to share your thoughts on Sustainability in Conversation. You can email us at podcast@sustainalytics.com or take this short survey. Key Moments 00:00:00 Introduction 00:01:46 A conversation with Catalina Secreteanu on the evolution of sustainable investing 00:14:13 A conversation with Bin Dong about ESG risk and portfolio resilience 00:24:01 Sign off Links to Select Resources Report | ESG Resilience in Focus: What the US-EU Divergence Means for Portfolio Performance Webinar | ESG Resilience in Focus: How Markets Price Risks and What It Means for Portfolios Report | ESG Risk Ratings: A Protective Instrument Amid Economic Shocks

• Chapters

ESG in Conversation: 2025 Proxy Season Review

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Lindsey Stewart, CFA, Director, Institutional Investor Content Guests: Angela Flaemrich, Director, Stewardship Matteo Felleca, Analyst, Stewardship Ignacio Garcia Giner, Senior Analyst, Stewardship Bonus Episode: 20-25 Proxy Season Review In this episode, recorded earlier this year, Lindsey sat down with Angela Flaemrich, Matteo Falleca and Ignacio Garcia Giner from Morningstar Sustainalytics’ ESG Proxy Voting Overlay team to discuss their insights from the most recent proxy season. Insights from the discussion include: The decline in the number of sustainability-focused resolutions Changes to the regulatory landscape Increasing support for resolutions related to shareholder rights Lower support for proposals related to climate and DEI issues Key Moments 00:00:04 Introduction. 00:02:12 Highlights of the sustainability-related proposals from 2025 proxy season. 00:04:55 Insights on support levels for sustainability-related proposals. 00:08:31 Insights on the changing topic mix in the 2025 proxy season. 00:11:12 Overview of climate proposal trends. 00:14:52 Overview of social proposal trends. 00:19:04 Thoughts on the 2026 proxy season. Links to Selected Resources Can Big Tech Keep Its Climate Commitments as Data Centers Scale? Investor Views on AI Oversight Voice of the Asset Owner Survey 2025 Qualitative Insights Voice of the Asset Owner Survey 2025 Quantitative Analysis

• Chapters

ESG in Conversation: Financing the Future

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Lindsey Stewart, CFA, Director of Investment Stewardship Research, Morningstar Sustainalytics Guests: Ruthann Bartello, Senior Director, Global Lead, Stewardship Kevin Ranney, Senior Director, Sustainable Fixed Income Research Allocating Funds to Support a Sustainable Future In this episode of ESG in Conversation, Melissa and Lindsey chat about the continued volatility in the sustainable investing market, as well as luxury brands’ focus on ESG and sustainable supply chains. To kick things off, Melissa interviews Kevin Ranney, Senior Director, Sustainable Fixed Income Research. He talks about the evolution of the sustainable fixed income market and shares insights on the latest enhancements to Morningstar Sustainalytics’ second-party opinion assessment framework. Later, Lindsey sits down with Ruthann Bartello, Senior Director, Global Lead, Stewardship, where they discuss Sustainalytics’ involvement in the Pact for the Future and the importance of bringing the investor voice to the conversation about funding the UN Sustainable Development Goals. Share Your Feedback Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:24 Introduction 00:06:25 Interview with Kevin Ranney on the evolution of sustainable fixed income investing and Morningstar Sustainalytics second-party opinion framework. 00:24:44 Interview with Ruthann Bartello about efforts to allocate more funding to the Sustainable Development Goals. 00:36:24 Closing remarks Links to Select Resources Sustainalytics Insight: Second Party Opinions a Primary Focus Webinar | Enhanced Assessment Framework for Use of Proceeds Second-Party Opinions Listen to more episodes here.

• Chapters

ESG in Conversation: Shining a Light on Shareholder Rights

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Lindsey Stewart, CFA, Director of Investment Stewardship Research, Morningstar Sustainalytics Guests: Hortense Bioy, CFA, Head of Sustainable Investing Research Jackie Cook, Senior Director, Stewardship Trends in Sustainable Investing and ESG-Focused Proxy Voting Activities ESG In Conversation welcomes Lindsey Stewart as the new co-host for the podcast. He and Melissa chat about current developments in the sustainable investment space and the uncertainties investors and companies face. This month’s episode includes three compelling interviews with some of Sustainalytics’ experts, including Lindsey. Tune in to hear perspectives on sustainable investing trends and the continuously changing regulatory landscape. The discussions also cover recent research examining patterns in investors’ proxy voting activities, how companies’ share structures can influence vote outcomes and how that plays out for certain ballot items like say on pay. Share Your Feedback Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:26 Introduction 00:03:32 Interview with Hortense Bioy on sustainable investing trends, regulatory changes and the impact on the investment funds landscape. 00:14:29 Interview with Jackie Cook covering recent research on the impact of dual class share structures on sustainability-focused shareholder resolutions. 00:28:42 Interview with Lindsey Stewart on the widening gap between European and US investors environmentally and socially focused shareholder resolutions. 00:36:24 Closing remarks Links to Select Resources Six Sustainable Investing Trends to Watch in 2025 Report Shareholder Democracy and the Challenge of Dual Class Share Structures Say on Pay: CEO Compensation and the Long Tail of Shareholder Dissent Voting on ESG: A Gap Becomes a Gulf Ad: To learn more about the Morningstar Sustainable Investing Summit and to register visit https://www.morningstar.com/business/events/morningstar-sustainable-investing-summit

• Chapters

ESG in Conversation: A Look Ahead at 2025 and Beyond

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Thomas Kuh, Head of ESG Strategy, Morningstar Indexes Barbara Lambotte, Head of Sustainable Fixed Income Research Azadeh Sabour, Director of Climate Thought Leadership, North America Anne Schoemaker, Director, ESG Products Catalina Secreteanu, Managing Director, ESG Solutions, Europe Lindsey Stewart, Director of Investment Stewardship Research 2025: A Year of Change in Sustainable Investing It’s the start of a new year, a time when many focus on setting new goals and ambitions. In this episode of ESG in Conversation, we explore the resolutions investors and issuers might make when it comes to ESG, climate transition and regulatory issues. Experts from Morningstar Sustainalytics weigh in and share their predictions on what financial market participants will, or should, focus on in the year ahead. Share Your Feedback 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. Key Moments 00:00:00 Introduction 00:00:35 Thomas Kuh discusses asset owners 00:05:43 Catalina Secreteanu discussion ESG risk and opportunities 00:08:35 Anne Schoemaker discusses regulations 00:12:52 Azadeh Sabour discusses climate transition finance 00:21:58 Lindsey Stewart discusses stewardship 00:26:03 Barbara Lambotte discusses sustainable fixed income 00:30:59 Closing remarks Links to Select Resources Morningstar Sustainable Investing Index Solutions Material ESG Issues Resource Center ESG Regulatory Insights Hub Climate Solutions Resource Center Stewardship Services Corporate Solutions – Sustainable Finance and Lending Solutions

• Chapters

ESG in Conversation: A Look Back at 2024

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Thomas Kuh, Head of ESG Strategy, Morningstar Indexes Arthur Carabia, ESG Research Policy Director at Morningstar Kilian Theil, Associate Director, Intelligent Process Automation, Morningstar Sustainalytics Andrei Hera, former Senior Manager Data Science, Morningstar Sustainalytics Aymen Karoui, Director of Methodology and Product Architecture, Morningstar Sustainalytics 2024: A Year in Conversation This year, ESG in Conversation examined the sustainability and climate issues that were top of mind for asset owners, asset managers, companies and financial market participants globally. Featuring insights from Morningstar Sustainalytics, listeners heard from subject matter experts on ESG, climate and regulatory issues affecting the market. In this episode, we share some key insights from this past season. Check out the full episodes via the links below and subscribe to the show on your favorite podcast app to hear what’s on the horizon in the year to come. Share Your Feedback Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:00 Introduction 00:00:30 Asset owners share their voice 00:02:48 The AI revolution comes to ESG 00:07:00 Climate disclosure rules come to the US 00:10:10 Harmonizing sustainability regulations remains a challenge 00:16:36 Insights on leveraging ESG ratings in portfolio construction 00:19:50 Closing remarks 00:20:49 The last word Links to Select Resources: Featured episodes: Asset Owners Share Their Views on the Changing Investment Landscape The AI Revolution Comes to ESG The SEC’s New Rules on Climate When It Comes to Sustainable Investing, It's A Material World Using ESG Data in Portfolio Construction 2024 Voice of the Asset Owner Survey – Quantitative Analysis

• Chapters

ESG in Conversation: Using ESG Data in Portfolio Construction

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Aymen Karoui, Director of Methodology and Product Architecture, Morningstar Sustainalytics Data as the Foundation for Successful Portfolios How can ESG ratings help investors identify risk when constructing and maintaining their portfolios? In this episode, we explore the practical answers to this question and more. We also feature research leveraging Sustainalytics’ Low Carbon Transition Ratings and Physical Climate Risk Metrics assessing companies' misalignment with the transition to net zero. We also discussed COP 16, which is focused on biodiversity and the key role of the private sector in addressing biodiversity loss. A recent article using data from our Biodiversity and Natural Capital Stewardship program found that many companies are at the beginning of their journeys. Share Your Feedback Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:00 Introduction 00:01:07 Interview with Aymen Karoui about Morningstar Sustainalytics report series in collaboration with Natixis exploring the ESG Risk Ratings and portfolio risk 00:19:51 Overview of the “Navigating Material Climate Risks in the Global Equities Market” report 00:20:57 Overview of “Mobilizing the Private Sector for COP16: A Critical Juncture for Biodiversity Action” 00:22:29 Highlights of upcoming Morningstar Sustainalytics events Links to Select Resources Report series with Natixis ESG Risk Ratings: A 360° Review ESG Risk Ratings: Distilling for Enhanced Performance and Downside Protection ESG Risk Premium: A Further Look Navigating Material Climate Risks in the Global Equities Markets Mobilizing the Private Sector for COP16: A Critical Juncture for Biodiversity Action Morningstar Sustainable Investing Summit 2024 More episodes

ESG in Conversation: When It Comes to Sustainable Investing, It's A Material World

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Arthur Carabia, ESG Research Policy Director at Morningstar In Global Financial Markets, ESG Materiality Matters On the heels of the EU parliamentary elections and ahead of pivotal contests in the U.S., the U.K. and elsewhere, ESG in Conversation met with Director of ESG Policy Research, Arthur Carabia to discuss what a change in political agendas and shifting priorities could mean for ESG and sustainability-focused regulations globally. We also explore the topic of ESG materiality and what it means to asset owners globally, and we discuss its foundational role in the enhancements to Morningstar Sustainalytics' ESG Risks Ratings and corporate governance assessment framework. Share Your Feedback Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:00 Introduction 00:01:34 Interview with Arthur Carabia about EU election outcomes and the state of ESG regulatory landscape 00:25:14 Overview of the Voice of the Asset Owner Survey 2024 00:26:34 Updates on Sustainalytics’ corporate governance assessment framework 00:28:14 Introduction to “Fundamentals of ESG Materiality: An Overview for Investors” Links to Select Resources Voice of the Asset Owner Survey 2024: Qualitative Insights On the Materiality of Corporate Governance: Themes, Applications and Best Practices Fundamentals of ESG Materiality: An Overview for Investors Webinar | Single, Double or Dynamic? An Exploration of Materiality in ESG Approaches to Investment More Episodes

ESG in Conversation: The SEC's New Rule on Climate

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Arthur Carabia, ESG Research Policy Director at Morningstar The SEC’s New Rule Ushers in Climate Transparency and Reporting in the U.S. In late March, the U.S. Securities and Exchange Commission introduced a climate disclosure rule that applies to its 10,000 registrant companies. In this episode of ESG in Conversation, we welcome back Arthur Carabia to shed light on what this new rule means for companies and their investors. He also shares his take on how the rule compares to other sustainability and climate disclosure regulations globally. Sticking to the regulatory theme, you’ll learn about the EU’s regulations on deforestation-free products and why the issue of environmental regulation is so significant across industries according to our ESG Risk Ratings. Finally, we share insight on the troublingly persistent issue of child labor in the cocoa supply chain. Share Your Feedback 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. Key Moments 00:00:00 Introduction 00:01:38 Interview with Arthur Carabia about the SEC’s new climate disclosure rule 00:12:53 Overview of the EU Regulation on Deforestation-Free Products 00:14:09 Insights from Morningstar Sustainalytics annual Industry Reports 00:15:13 Details on child labor in global cocoa supply chains Links to Select Resources The SEC’s Climate Disclosure Rule: A Step in the Right Direction EUDR: Navigating the EU Regulation on Deforestation-Free Products The State of ESG Risk Across Industries: Three Key Takeaways From Our Annual Industry Reports Child Labor in Cocoa Supply Chains: Unveiling the Layers of Human Rights Challenges More Episodes

ESG in Conversation: The AI Revolution Comes to ESG

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guests: Kilian Theil, Associate Director, Intelligent Process Automation, Morningstar Sustainalytics Andrei Hera, Senior Manager Data Science, Morningstar Sustainalytics AI Technology is Reshaping the World of ESG Assessments 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. Share Your Thoughts About the Show 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. Key Moments 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 Links to Select Resources 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

ESG in Conversation: Asset Owners Share Their Views on the Changing Investment Landscape

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Morningstar Sustainalytics Guest: Thomas Kuh, Head of ESG Strategy, Morningstar Indexes Survey Says... Asset Owners Are Committed to Sustainable Investing 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. Tell Us What You Think 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. Key Moments 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 Links to Select Resources 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 More Episodes

ESG in Conversation: Combatting Greenwashing in Financial Markets

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Sustainalytics Guest: Ruthann Bartello, Commercialization Director, Stewardship Services Investors’ Greenwashing Concerns and How to Address Them 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. Share Your Feedback With the Team Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 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 More episodes

ESG in Conversation | ISSB Sets New Standards for Sustainability Reporting

Episode Summary Host: Melissa Chase, Senior Content Marketing Manager, Sustainalytics Guest: Arthur Carabia, Director, ESG Policy Research, Morningstar New Format, Same Great Insights We are excited to share with you the revamped ESG in Conversation! In this new format, we’re expanding the focus beyond sustainable finance to share the latest environmental, social and corporate governance insights. In addition to highlighting recent research from our global team of ESG experts, we will continue to bring you deep dives into the ESG, climate, impact, sustainable finance and regulatory insights you need to know about. In this episode you’ll learn about the upcoming greenhouse gas reporting requirements for companies in North America, the implications of Europe’s policy response to the climate crisis, the Fit for 55 package, and what it means for companies that supply goods and services in the EU. Also, Morningstar’s Arthur Carabia discusses what the recently published International Sustainability Standards Boards reporting standards mean for companies and investors. Tell Us What You Think Please take a moment to share your thoughts on ESG in Conversation. You can email us at podcast@sustainalytics.com. Key Moments 00:00:00 Introduction 00:01:45 Greenhouse gas emissions requirements for North American companies 00:03:50 Interview with Arthur Carabia about the launch of the ISSB standards 00:10:40 Highlights of the EU’s Fit for 55 legislation Links to Select Resources Mandatory Scope 3 Emissions Reporting in the U.S. and Canada: Most Companies Are Unprepared Policy Responses to Climate Change: The EU’s Fit for 55 Package and Its Implications for Companies and Investors What the New ISSB Climate Standard Means for Investors More Episodes

ESG in Conversation | What Does It Take To Be a Sustainability Leader in 2023 and Beyond?

In this episode of ESG in Conversation, we’re exploring the question: what does it take to be a sustainability leader in 2023 and beyond? You’ll hear from Joseph Hill, London Techstars alumn and CEO of Zephframe, about the sustainability challenges facing start-ups. You’ll also hear from Eileen Buckley, VP of Corporate Responsibility at Stryker, about the importance of integrating sustainability across an organization. Gabriel Presler, Global Head for Enterprise Sustainability at Morningstar, also joins in to discuss the role investors play in sustainability leadership.

ESG In Conversation | How Do Businesses, Governments and Investors Fit Into the Circular Economy?

Host: Curtis File, Editorial Manager, ESG and Sustainable Finance Featuring: Juliette Goulet, Project Manager, Ellen MacArthur Foundation Wayne Hubbard, CEO, ReLondon Joris Laseur, Associate Director, Stewardship, Morningstar Sustainalytics Jonathan Kellar, Manager, Stewardship, Morningstar Sustainalytics As global leaders gain a more nuanced understanding of climate change, they are looking at the circular economy as a potential solution to mitigate their impact. In a circular economy, organizations aim to prevent waste throughout the value chain instead of relying solely on recycling. This approach involves sharing, leasing, reusing, repairing, and recycling materials and products for as long as possible. Proponents say the approach comes with huge potential upside. The Ellen MacArthur Foundation, for example, projects that a circular economy could reduce greenhouse gas emissions by 25%, create 700,000 jobs, and save $200 billion per year by 2040. But the path to achieving those goals is far from clear, and it will require an all-hands-on-deck effort. In this episode of ESG in Conversation, we’re exploring the question: how do businesses, governments and investors fit into the circular economy? You’ll hear from Juliette Goulet, a seasoned sustainability practitioner from the Ellen MacArthur Foundation, about the challenges of implementing a circular economy. You’ll also hear from Wayne Hubbard, CEO of ReLondon, about putting the circular economy into practice in London, England. Joris Laseur and Jonathan Kellar from Morningstar Sustainaltyics’ stewardship team also join to discuss the role investors play in helping businesses reduce their waste and implement circular business practices.

What’s Happening in Sustainable Finance: Green Bond Standards on the Horizon and Much More

Episode Summary Hosts Nicholas Gandolfo, Vice President, Corporate Solutions Aditi Bhatia, Senior Regional Manager, Corporate Solutions What Will the EU Green Bond Standard Mean for the Market? With the European Union’s Green Bond Standard set to come into effect sometime next year, we look at what it could mean for the global sustainable finance market more broadly. Although the highly anticipated framework is expected to be the gold standard for what we see in the market going forward, there are ongoing concerns about its usability. Some market participants are worried about the potential difficulty in meeting all the requirements of the Green Bond Standard and whether the standard is too prescriptive in its requirements to set up a framework. Sustainable Finance Meets AI The sustainable debt market continues to see innovations in the types of projects being funded. One example is the use of green bonds to raise money for artificial intelligence (AI) projects related to green or social initiatives. The green bond issuance highlighted in this episode will finance AI projects related to improving the environmental performance of buildings through data analytics and energy management software. Using AI to support corporate sustainability improvements is not new, but funding such projects using sustainable debt instruments could be the next wave. Changes Coming to the Podcast! Our sustainable finance insights show will be taking a break for the summer. We’ll be back this fall with some exciting changes to bring you more ESG, sustainable finance and responsible investing insights. In the meantime, please subscribe to ESG in Conversation on your favorite podcast platform and enjoy new episodes each month! Key Moments 0:00:49 Market overview 0:01:36 CBI Q1 highlights report 0:03:04 LMA sustainability linked loan drafting model 0:03:28 Sustainable bond market risks 0:04:44 Gender-focused social bonds 0:05:37 Transition plan guidelines 0:05:58 Debt for nature swaps 0:06:23 IRENA report on the cost of energy transition 0:07:00 New CBI reports 0:07:42 SLB and SLL overview 0:11:35 Audience questions 0:16:08 Green bonds and loans overview 0:19:25 Labeled products, transition bonds and regulatory updates Links to Select Resources Climate Bonds Initiative – Sustainable Debt Market Summary Q1 2023 Environmental Finance – LMA Publishes ‘Vital’ Sustainability-Linked Loan Drafting Model Morningstar Sustainalytics – Anticipating the Inevitable: What to Expect from the European Green Bonds Regulation Responsible Investor – Details Emerge on EU Green Bond Standard as Concerns About Uptake Remain Environmental Finance – Sustainable Bond Market Risks Fragmentation Amid ‘Regulatory Overload’ BusinessWorld – No Plans for Follow-Up Offer of Catastrophe Bonds – De Leon WION – Bhutan Takes Steps to Set Up Green Cryptocurrency Mining Operation: Report Environmental Finance – ‘Huge Opportunities’ for Gender-Focused Corporate Sustainable Bond Growth Environmental Finance – GSAM: 36% of European Investors Ready to Invest in Social Bonds Forbes – Companies Going Green Should Add Finance To Sustainability Strategies Eco-Business – The Next Wave of Greenwashing: Offsets, Competitor Claims and ‘Transition-Washing’ Environmental Finance – Banks Call on EU to Provide Transition Plan Guidelines Environmental Finance – Credit Suisse Arranges $1.6bn Debt-for-Nature Conversion With Ecuador IRENA – Low-Cost Finance for the Energy Transition Climate Bonds Initiative Reports Concrete Policies to Underpin the Cement Transition ASEAN Sustainable Finance State of the Market 2022 Property Certification Opportunities in Tokyo Sneak Peek: The CBI’s Resilience Taxonomy Blueprint Sustainalytics Second-Party Opinions TDC NET Sustainability-Linked Finance Framework Second Party Opinion UMH Properties Inc. Sustainable Finance Framework Second-Party Opinion Grupo Bimbo Sustainable Financing Framework Second-Party Opinion More Episodes

What’s Happening in Sustainable Finance: GSSS Market Rebounds, Sovereign Sustainable Debt, and Much More

Episode Summary Hosts: Sabrina Tang Sales Associate, Sustainable Finance Solutions Nicholas Gandolfo, Vice President, Corporate Solutions Is the Sustainable Finance Market Rebounding in 2023? In this month’s episode, Nick and Sabrina dig into the sustainable finance market’s rebound in Q1. Despite the market pressures caused by inflation and the banking shake-ups at UBS and Credit Suisse, sustainable finance activity saw an upward trend in the first part of the year. Although Nick and Sabrina stop short of making any predictions about where volumes will land by the end of the year, they do note some interesting dynamics in the market: green use of proceed bonds remain strong, social and sustainability focused bonds are down slightly, and sustainability-linked finance appears to be gaining some ground again despite continued market scrutiny. Scrutiny Continues for Sustainability-Linked Bonds Despite the rebound in sustainability-linked bond (SLB) activity in Q1 this year, concerns remain about this sustainable debt instrument. Several recent articles and reports discuss the credibility of SLB targets, whether coupon rates offer enough of a penalty if targets are missed, and whether the performance targets and indicators have an impact on sustainability. There’s also some media coverage on SLB issuers missing their stated sustainability performance targets. Although not ideal, missed targets among SLB issuers could be viewed as a sign of their rather than an indication of something being fundamentally wrong. For issuers considering sustainability-linked debt instruments and seeking additional guidance, check out the latest market references from Climate Bonds Initiatives (CBI). The Sustainable Sovereign Debt Club Continues to Grow CBI’s 2022 market summary highlights the growth of sovereign bond issuances. This is great to see because sustainable debt from sovereigns catalyzed the market in many cases. Sabrina highlights the recent activity from Turkey, Austria, Italy, and Cyprus as well as the sovereign green bond program being considered by the Australian government. In addition to more countries seeing the opportunities in sustainable debt instruments, regulators across a growing number of jurisdictions are ramping up sustainable finance activities in their countries. Developments are ongoing in India, Indonesia, Malaysia, Sri Lanka, Japan, and Vietnam to name just a few. Key Moments 0:00:59 Market overview 0:02:07 Q1 market overview 0:03:25 CBI 2022 state of the market report 0:05:22 Continuing SLB scrutiny 0:06:46 Climate transition plan transparency 0:08:34 More updates to the EU taxonomy 0:09:34 Additional articles and reports to read (see links below) 0:11:34 SLB and SLL overview 0:14:15 Audience questions 0:18:14 Green bonds overview 0:21:13 Green loans overview 0:22:30 Social bonds and loans overview 0:23:25 Labeled products, transition bonds and regulatory updates Links to Select Resources Climate Bonds Initiative – Green and Other Labelled Bonds Fought Inflation to Amass USD858.bn Volume in 2022 Climate Bonds Initiative – Sustainable Debt: Global State of the Market 2022 Environmental Finance - ‘It’s time to stop step-up-only sustainability-linked bonds’ Environmental Finance – Union Investment: SLBs Can Have Impact Environmental Finance – CBI Launch Sustainability-Linked Bond Certification Scheme Energy Monitor – Are We About to See a Surge in Sovereign Sustainability-Linked Bonds? Environmental Finance – Sustainability-Linked Targets Could Add ‘Discipline’ in Green Bond Markets Retail Banker International – CaixaBank Rolls Out Metaverse Initiative to Promote Sustainability Responsible Investor – Market Hails ‘Surprisingly Helpful’ SFDR Clarifications from European Commission GreenBiz – Should Sustainability Teams Report Directly to the CEO? Climate Action 100+ - Climate Action 100+ Releases the Latest Evolution of the Net Zero Company Benchmark Financial Times – New Standards Keep the Greenwash off Green Bonds The Strait Times – Companies Risk Penalties as Asia and Australia Target Greenwashing Environmental Finance – ‘Greenwashing is rife’ in Green Bonds, Says EU’s Tang IPCC – AR6 Synthesis Report: Climate Change 2023 Environmental Finance – Nature-Related Sovereign Issuances Set to Grow, Insight Predicts Climate Bonds Initiative – Sustainability-Linked Debt Instrument Certification Sustainalytics Second-Party Opinions Hera Group’s Green Financing Framework Second-Party Opinion Council of Europe Development Bank Social Inclusion Bond Framework Second-Party Opinion More Episodes

ESG In Conversation | How Can Investors Address Biodiversity Loss?

Host: Curtis File, Editorial Manager, ESG and Sustainable Finance Featuring: Sune Andersen, Manager, Stewardship Simon Butler, Associate Professor, University of East Anglia Gayaneh Shahbazian, ESG Research Manager, Biodiversity The statistics are concerning. The International Union for the Conservation of Nature (IUCN) estimates that up to 28% of all species are at risk of extinction. Given these alarming figures, it is crucial for investors to take action and ensure their investments do not further harm our vulnerable ecosystems. Join us on the latest episode of ESG in Conversation, where we delve into the critical question: how can investors effectively address biodiversity loss? Gain valuable insights from Dr. Simon Butler, an esteemed professor specializing in acoustic ecology, whose work underscores the urgent need to tackle biodiversity issues. Additionally, hear from Morningstar Sustainaltyics' stewardship and ESG research teams, providing valuable perspectives on investor engagement on biodiversity loss and the challenges faced by corporations in disclosing nature-related risks.