Latest news with #MorningstarSustainalytics
Zawya
21-05-2025
- Business
- Zawya
BlueOnion and Morningstar Sustainalytics Collaborate to Expand Sustainable Investment and Due Diligence Coverage
HONG KONG SAR - Media OutReach Newswire - 21 May 2025 - BlueOnion, an award-winning sustainability analytics platform has collaborated with Morningstar Sustainalytics, one of the world's leading independent sustainability and corporate governance research, ratings and analytics firm to empower banks and asset managers to analyze and visualize sustainability data. This collaboration addresses the growing challenges of greenwashing in sustainable investment products. With the surge in ESG assets and heightened regulatory scrutiny—such as the recent circular issued by the Hong Kong Monetary Authority (HKMA) on the Sale and Distribution of Sustainable Investment Products, the synergistic interplay between BlueOnion's analytics and Morningstar Sustainalytics' data will enhance the financial sector's efforts in meeting compliance requirements in a transparent and fuss free manner. Together, the BlueOnion SFDR product and Morningstar Sustainalytics' data expand coverage to 300,000 mutual funds, ETFs, and 93,000 bond funds, offering broader insights for sustainable investing. The platform standardizes sustainability product measurement, aligns with the EU SFDR, and empowers organizations to analyze ESG performance, assess carbon emissions, avoid controversies, and address climate change—all while meeting regulatory and investor expectations with transparency and confidence. "Proper due diligence is essential for banks to meet regulatory compliance and for asset managers to build portfolios aligned with global sustainability standards. This process depends on robust data, analytics, and clear visualization. BlueOnion's advanced analytics and visualization capabilities, together with our robust data, bridges a gap in the fixed income asset class and the small to mid-cap coverage. As a turnkey solution, it helps our banking and fund clients save time and costs," said Nick Cheung, Managing Director of Enterprise Products, Greater China, Morningstar. This collaboration allows clients to seamlessly integrate Morningstar Sustainalytics' data with BlueOnion's existing data and analytics solution on sustainability, offering clients an intuitive solution to tackle challenges in regulatory compliance and sustainability-focused investment strategies. "We are excited to collaborate with Morningstar to deliver a transformative, turnkey solution that empowers banks and asset managers on their sustainability journey. By combining Morningstar's unparalleled global fund data and analytics expertise with BlueOnion's innovative platform, we provide deeper insights into funds pursuing sustainability integration, transition, and impact through EU taxonomy-related activities. Together, we are elevating industry standards in ESG research, data quality, and transparency, driving meaningful impact and innovation," said Elsa Pau, Group CEO of BlueOnion. This collaboration exemplifies BlueOnion and Morningstar Sustainalytics's commitment to supporting financial institutions in combating greenwashing, achieving compliance, and advancing the global ESG agenda. Together, they enable clients to uncover actionable insights and drive meaningful progress in sustainable investing. Hashtag: #BlueOnion The issuer is solely responsible for the content of this announcement. About BlueOnion BlueOnion is the end-to-end sustainability analytics platform transforming the financial ecosystem. Banks, asset managers, institutional investors, and companies rely on BlueOnion to assess carbon emissions, analyze ESG performance, conduct climate scenario analysis, and build green portfolios. The platform supports sustainability reporting, climate risk management, and compliance with anti-greenwashing regulations, enabling organizations to meet regulatory, investor, and customer expectations. BlueOnion's intuitive tools and data visualizations empower users to drive meaningful decarbonization, enhance transparency, and achieve their sustainability goals responsibly. To learn more, visit About Morningstar Sustainalytics Morningstar Sustainalytics is a leading sustainability data, research, and risk rating service provider. It supports investors in developing responsible investment strategies. With over 30 years of expertise, Sustainalytics helps financial institutions integrate sustainability risk assessments into their investment processes while ensuring compliance with evolving sustainability regulations. Learn more at BlueOnion
Fast Company
15-05-2025
- Business
- Fast Company
Leading the charge: The ESG imperative in safeguarding critical infrastructure
The rise in cybersecurity attacks targeting critical infrastructure has become an urgent national security concern, impacting business operations and community safety. A recent SP Global report reveals that physical security incidents on the U.S. power grid, which resulted in measurable outages, increased by 71% from 2021 to 2022. This highlights the vulnerability of essential services like energy, utilities, and power grids and the serious consequences of any disruptions. Cybersecurity risks are just as alarming. According to Morningstar Sustainalytics, nearly 38% of utility companies worldwide had weak cybersecurity management practices in 2022, leaving critical systems exposed to potential cyberattacks that could disrupt energy supply, endanger public safety, and destabilize operations. The increasing use of connected devices in these sectors only adds complexity, opening up more opportunities for cybercriminals to exploit vulnerabilities. SIGNIFICANT CYBERSECURITY LAPSES One example of how significant cybersecurity lapses can be is the 2017 Equifax data breach. Hackers took advantage of an unpatched vulnerability in Apache Struts despite a public warning. The breach exposed the personal information of 143 million Americans and cost the company over $1.4 billion in damages. This breach shows the catastrophic consequences that can arise when corporate boards do not treat cybersecurity as a top priority. Additionally, the 2025 breach of multiple Australian pension funds further highlights how vulnerabilities in financial systems can have real-world consequences. Cyberattackers targeted major funds like AustralianSuper, Rest Super, and Hostplus, leading to the theft of A$500,000 from compromised accounts. The breach not only jeopardized the financial assets of millions of members, but also tarnished the reputation of the funds involved. This is a stark reminder that any institution with assets is vulnerable to a cyberattack. A RISE IN DEVICE ADOPTION The growing reliance on connected devices in critical infrastructure is projected to continue to climb globally. Statistica's 2024 Transforma insights predict a sharp rise in device adoption across these sectors. While these devices bring significant efficiencies and innovations, they also open the door to new cybersecurity risks. As the attack surface increases with each new device, the potential for vulnerabilities to be exploited grows, intensifying national security concerns and increasing the risk to critical systems. Cybersecurity breaches that expose customer data or compromise critical infrastructure also raise major environmental, social, and governance (ESG) issues. These breaches can severely damage company reputations, erode public trust, and destabilize society. Protecting infrastructure is now about more than just business continuity—it's about fulfilling corporate social responsibility and ensuring the long-term success of the organization. PRIORITIZING CYBERSECURITY Given the scale of these risks, corporate boards must prioritize cybersecurity. Securing critical infrastructure is no longer optional—it's a national security priority. Boards must ensure that robust cybersecurity measures are not only implemented but also continuously tested, updated, and aligned with the constantly evolving threat landscape. Failing to act leaves organizations open to substantial financial, operational, and reputational harm, making cybersecurity an essential part of their leadership duties. As critical infrastructure becomes more interconnected, ensuring its security is essential to preserving the availability, integrity, and reliability of essential services. Collaboration among industry leaders, government entities, and cybersecurity experts is necessary to develop and implement strategies to protect these systems from growing threats. The need for coordinated action and strong security frameworks has never been more urgent. Securing critical infrastructure isn't just about protecting business assets; it's about safeguarding our communities, ensuring the continuity of essential services, and protecting national security. As connected devices continue to be adopted, cybersecurity must remain a top priority, particularly within sectors that provide vital services. Corporate boards must make cybersecurity a central part of their strategy, ensuring it is prioritized to support the long-term resilience and viability of their organizations.
Business Times
04-05-2025
- Business
- Business Times
Global backlash drives worst ESG fund redemptions on record
THE global market for sustainable funds just suffered its worst quarter on record, with redemptions reaching an all-time high, according to a fresh analysis by Morningstar. Against a backdrop of 'geopolitical uncertainty and a growing backlash against ESG,' investors withdrew an estimated US$8.6 billion in the first quarter of 2025, Morningstar said last week. The development marks a 'stark reversal' from the US$18.1 billion in inflows in the final quarter of 2024, it said. Even in Europe, which is by far the world's biggest market for investments targeting environmental, social and governance goals, ESG (environmental, social and governance) funds saw net outflows, with redemptions of US$1.2 billion. The first-quarter withdrawals mark the first time European ESG funds have lost money since Morningstar started monitoring the market in 2018. Overall, the ESG fund market is struggling to find its footing amid an 'increasingly complex geopolitical environment' triggered by US President Donald Trump's return to office, the researcher said. 'The quarter signals a shift, not just in flows, but in how sustainable investment strategies are being perceived and positioned in the market,' Hortense Bioy, head of sustainable investing research at Morningstar Sustainalytics, said in an e-mail accompanying the report. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up 'We're seeing further signs of consolidation, rebranding activity, and cautious product development, amid an intensifying ESG backlash in the US which is now also noticeably affecting sentiment in Europe,' Bioy said. 'Investor appetite for ESG funds will continue to be tested in the months ahead by an evolving regulatory landscape and mounting geopolitical tensions.' Asset managers based in the US are increasingly toning down references to ESG in response to Trump's attacks on climate-change initiatives and due to legal risks following his executive order targeting DEI (diversity, equity and inclusion), Morningstar said. The development has led some European investors to question US asset managers' commitment to climate and sustainability goals. Meanwhile, market regulators in Europe have been cracking down on inflated ESG claims with new investment requirements being put in place in both the EU and the UK. The offering of new ESG funds continued to slide in the quarter, with a record low of 54 new funds launched worldwide, Morningstar said. Meanwhile, the number of funds dropping ESG-related terms from their names roughly doubled, to 116. A further 114 were either liquidated or merged, with US fund closures hitting a record high of 20. 'Funds that struggle to attract assets or deliver good returns are increasingly prone to closing down,' Morningstar said in its report. 'We view this as a natural evolution of the industry.' Canada, Australia and New Zealand marked a rare bright spot, with each seeing inflows of around US$300 million, Morningstar said. The global ESG fund market had assets worth US$3.2 trillion in the first quarter, it said. BLOOMBERG
Reuters
24-04-2025
- Business
- Reuters
Trump agenda drives record outflows from global sustainable funds, Morningstar says
April 24 (Reuters) - Investors withdrew a record $8.6 billion from global sustainable funds in the first quarter, researcher Morningstar (MORN.O), opens new tab said on Thursday, attributing the outflows largely to the shift against climate and social initiatives by U.S. President Donald Trump. The biggest driver of the outflows came in Europe, which still accounts for most of the $3.16 trillion in the funds globally. Net withdrawals from European sustainable funds reached $1.2 billion in the first quarter, a reversal from net deposits of $20.4 billion in the prior quarter and the first net outflows for the region since at least 2018. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. Trump's return to the White House deprioritized sustainability goals in Europe, Morningstar said in its report, opens new tab, and his actions like executive orders against diversity, equity and inclusion (DEI) efforts have created new legal risks. Fund performance concerns in areas like clean energy also helped drive out money, Morningstar wrote. U.S. withdrawals were $6.1 billion in the first quarter, the tenth consecutive quarter of withdrawals. "The quarter signals a shift, not just in flows, but in how sustainable investment strategies are being perceived and positioned in the market,' said Hortense Bioy, head of sustainable investing research at Morningstar Sustainalytics, in a note accompanying the report. "We're seeing further signs of consolidation, rebranding activity, and cautious product development, amid an intensifying ESG backlash in the U.S. which is now also noticeably affecting sentiment in Europe," Bioy said. New sustainable product launches were 54 in the first quarter, about half of the 105 launched the prior quarter. Asset managers rebranded 335 sustainable funds in the first quarter such as by dropping or changing their environmental, social or governance terms, more than twice as many as in the prior quarter.
Yahoo
24-04-2025
- Business
- Yahoo
Trump agenda drives record outflows from global sustainable funds, Morningstar says
By Ross Kerber (Reuters) -Investors withdrew a record $8.6 billion from global sustainable funds in the first quarter, researcher Morningstar said on Thursday, attributing the outflows largely to the shift against climate and social initiatives by U.S. President Donald Trump. The biggest driver of the outflows came in Europe, which still accounts for most of the $3.16 trillion in the funds globally. Net withdrawals from European sustainable funds reached $1.2 billion in the first quarter, a reversal from net deposits of $20.4 billion in the prior quarter and the first net outflows for the region since at least 2018. Trump's return to the White House deprioritized sustainability goals in Europe, Morningstar said in its report, and his actions like executive orders against diversity, equity and inclusion (DEI) efforts have created new legal risks. Fund performance concerns in areas like clean energy also helped drive out money, Morningstar wrote. U.S. withdrawals were $6.1 billion in the first quarter, the tenth consecutive quarter of withdrawals. "The quarter signals a shift, not just in flows, but in how sustainable investment strategies are being perceived and positioned in the market,' said Hortense Bioy, head of sustainable investing research at Morningstar Sustainalytics, in a note accompanying the report. "We're seeing further signs of consolidation, rebranding activity, and cautious product development, amid an intensifying ESG backlash in the U.S. which is now also noticeably affecting sentiment in Europe," Bioy said. New sustainable product launches were 54 in the first quarter, about half of the 105 launched the prior quarter. Asset managers rebranded 335 sustainable funds in the first quarter such as by dropping or changing their environmental, social or governance terms, more than twice as many as in the prior quarter. Sign in to access your portfolio
