Carbon Risk Score

The Morningstar Portfolio Carbon Risk Score is the asset-weighted carbon-risk score of the equity or corporate-bond holdings in a fund. The carbon risk of a company is Morningstar Sustainalytics’ evaluation of the degree to which a firm’s activities and products are aligned with the transition to a low-carbon economy.

To calculate the Portfolio Carbon Risk Score, Morningstar uses Sustainalytics' company carbon-risk ratings, which indicate the risk that companies face from the transition to a low-carbon economy. At least 67% of the portfolio assets must have a carbon-risk rating from Sustainalytics in order for a score to be calculated. The percentage of assets covered is rescaled to 100%.