Morningstar Sustainalytics has launched an updated version of its Climate Transition Toolkit, aimed at helping investors strengthen climate integration across investment research, portfolio construction and engagement.
The toolkit brings together transition-relevant data, metrics and insights within a single framework, addressing what the company described as the long-standing challenge of fragmented and inconsistent climate information facing investors. It is designed to support security selection, climate-related assessments and transition-risk engagement as regulatory and reporting expectations continue to rise.
The updated toolkit draws on Morningstar Sustainalytics’ established climate tools, including its Low Carbon Transition Ratings (LCTR). Key indicators include Implied Temperature Rise, Ambition Temperature Alignment, Value-at-Risk measures and TCFD Disclosure Sufficiency Scores. According to the company, the approach allows investors to assess both decarbonisation trajectories and performance-based temperature alignment, reflecting corporate actions as well as stated ambitions.
David Pagliaro, President of Morningstar Sustainalytics, said investors are operating in an increasingly complex climate landscape. “With rising regulation, evolving frameworks and persistent data gaps, investors need clarity and consistency. The Climate Transition Toolkit brings robust signals and granular, forward-looking data into one place, helping investors assess real-world transition readiness, meet reporting requirements and make more informed capital allocation decisions,” he said.
The launch comes amid continued demand for climate-aligned investments, despite broader ESG headwinds. Assets in mutual funds and exchange-traded funds with a climate mandate reached a record USD 644 billion in the first half of 2025. Morningstar’s Investing in the Times of Climate Change report published in November 2025 found that nearly half of these assets were allocated to climate transition strategies.
Users of the toolkit gain access to detailed company-level metrics, including green revenues, green capital expenditure, fossil fuel involvement, Scope 3 emissions categories, management performance and transition data. Morningstar Sustainalytics said these insights are intended to help investors identify meaningful signals and apply them to real-world investment decisions.
By combining high-level indicators with deeper company analysis, the Climate Transition Toolkit aims to support investors in aligning capital with climate goals while managing climate-related risks with greater confidence.
