Impact Framework (2024)

Morningstar Sustainalytics’ Impact Framework is the bedrock of our approach to measuring impact and the basis of our Impact Solutions. Aligned with the globally recognized UN Sustainable Development Goals, it can help investors shape meaningful and transparent impact objectives.

The framework includes five environmental and social themes, Human Development, Resource Security, Climate Action, Healthy Ecosystems, Basic Needs, and one governance theme, Fair Business Conduct.

Impact Framework

Environmental Themes

Impact Framework (1)

Climate
Action

The global effort to curb the Earth’s temperature rise and cope with unavoidable consequences.

Impact Objectives

1. Green Buildings

2. Renewable Energy

3. Low-Carbon Transportation

4. Low-Carbon Manufacturing

5. Low-Carbon Agriculture

6. Carbon Emissions Reduction

7. Climate Change Adaptation

UN SDGs

7. Affordable and Clean Energy

9. Industry, Innovation and Infrastructure

11. Sustainable Cities and Communities

13. Climate Action

Impact Framework (2)

Healthy Ecosystems

Safeguarding of ecologically sound environments on land, air and water.

Impact Objectives

8. Sustainable Food Production

9. Sustainable Forestry

10. Sustainable Land and Marine Use

11. Clean Air, Land, and Water

12. Pollution Prevention and Reduction

UN SDGs

2. Zero Hunger

3. Good Health and Well-Being

6. Clean Water and Sanitation

9. Industry, Innovation and Infrastructure

12. Responsible Consumption and Production

15. Life on Land

Impact Framework (3)

Resource Security

Positively impacting natural resources through efficient use and circular economies.

UN SDGs

2. Zero Hunger

6. Clean Water and Sanitation

7. Affordable and Clean Energy

11. Sustainable Cities and Communiities

12. Responsible Consumption and Production

Social Themes

Governance Theme

Impact Framework (4)

Basic
Needs

Addressing the basic needs of humans, including access to food, housing, healthcare, clean water, and energy.

Impact Objectives

16. Affordable Housing

17. Water, Sanitation, and Hygiene

18. Peace & Human Security

19. Quality Health

20. Food Security

21. Access to Energy

UN SDGs

2. Zero Hunger

3. Good Health and Well-Being

6. Clean Water and Sanitation

7. Clean and Affordable Energy

11. Sustainable Cities and Communities

16. Peace, Justice and Strong Institutions

Impact Framework (5)

Human Development

Promoting human capabilities and progress through education, employment opportunities, and healthcare.

Impact Objectives

4. Quality Education

5. Gender Equality

7. Affordable and Clean Energy

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

10. Reduced Inequalities

11. Sustainable Cities and Communities

UN SDGs

4. Quality Education

5. Gender Equality

7. Affordable and Clean Energy

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

10. Reduced Inequalities

11. Sustainable Cities and Communities

Impact Framework (6)

Fair Business Conduct

A baseline for social and environmental themes.

UN SDGs

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

11. Sustainable Cities and Communities

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

16. Peace, Justice and Strong Institutions

17. Partnership for the Goals

UN SDG Alignment

7. Affordable and Clean Energy

9. Industry, Innovation and Infrastructure

11. Sustainable Cities and Communities

13. Climate Action

2. Zero Hunger

3. Good Health and Well-Being

6. Clean Water and Sanitation

9. Industry, Innovation and Infrastructure

12. Responsible Consumption and Production

14. Life Below Water

15. Life on Land

2. Zero Hunger

6. Clean Water and Sanitation

7. Affordable and Clean Energy

11. Sustainable Cities and Communities

12. Responsible Consumption and Production

2. Zero Hunger

3. Good Health and Well-Being

6. Clean Water and Sanitation

7. Clean and Affordable Energy

11. Sustainable Cities and Communities

16. Peace, Justice and Strong Institutions

4. Quality Education

5. Gender Equality

7. Affordable and Clean Energy

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

10. Reduced Inequalities

11. Sustainable Cities and Communities

8. Decent Work and Economic Growth

9. Industry, Innovation and Infrastructure

11. Sustainable Cities and Communities

16. Peace, Justice and Strong Institutions

17. Partnership for the Goals

Spotlight on our Impact Themes

To learn more about the environmental and social themes within our Impact Framework, download these thematic reports which leverage our Impact Metrics to provide insights on a key issue for each theme.

Impact Framework (7)

1

Human Development

Enhancing human capabilities and promoting human progress. This includes measures that support education, improve equality, provide employment opportunities and advance healthcare.

Impact Framework (8)

4

Basic Needs

Addressing human needs, particularly those of low-income individuals. Basic needs include providing access to food, housing, essential healthcare (including major and neglected diseases), clean water, and energy for underserved populations. It also addresses human safety, including safe workplaces and communities.

Impact Framework (9)

2

Resource Security

The effort to secure the Earth's resources by using them efficiently and contributing to circular economies. Resources of concern include water, timber, metals, minerals, gases and all types of manufactured materials.

Impact Framework (10)

5

Healthy Ecosystem

The safeguarding of land, air and water to ensure ecologically safe environments. This does not include GHG emissions and water consumption, as these are covered under other themes.

Impact Framework (11)

3

Climate Action

The global effort to limit the Earth’s increasing temperature and manage its consequences. This includes measures to promote clean energy, reduce GHG emissions and adapt to climate change.

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I'm an expert in sustainable investing and impact measurement, with a deep understanding of Morningstar Sustainalytics' Impact Framework. My expertise is rooted in a comprehensive knowledge of environmental, social, and governance (ESG) factors, particularly in the context of sustainable development and responsible investing.

The Morningstar Sustainalytics' Impact Framework is a robust system that serves as the foundation for measuring impact, aligning with the globally recognized UN Sustainable Development Goals (SDGs). This framework consists of five environmental themes and one governance theme:

  1. Climate Action:

    • Impact Objectives: Green Buildings, Renewable Energy, Low-Carbon Transportation, Low-Carbon Manufacturing, Low-Carbon Agriculture, Carbon Emissions Reduction, Climate Change Adaptation.
    • UN SDGs: Affordable and Clean Energy, Industry, Innovation and Infrastructure, Sustainable Cities and Communities, Climate Action.
  2. Healthy Ecosystems:

    • Impact Objectives: Sustainable Food Production, Sustainable Forestry, Sustainable Land and Marine Use, Clean Air, Land, and Water, Pollution Prevention and Reduction.
    • UN SDGs: Zero Hunger, Good Health and Well-Being, Clean Water and Sanitation, Industry, Innovation and Infrastructure, Responsible Consumption and Production, Life on Land.
  3. Resource Security:

    • Impact Objectives: Sustainable Water Use, Circular Economy, Energy Efficient Products and Services.
    • UN SDGs: Zero Hunger, Clean Water and Sanitation, Affordable and Clean Energy, Sustainable Cities and Communities, Responsible Consumption and Production.
  4. Basic Needs:

    • Impact Objectives: Affordable Housing, Water, Sanitation, and Hygiene, Peace & Human Security, Quality Health, Food Security, Access to Energy.
    • UN SDGs: Zero Hunger, Good Health and Well-Being, Clean Water and Sanitation, Clean and Affordable Energy, Sustainable Cities and Communities, Peace, Justice and Strong Institutions.
  5. Human Development:

    • Impact Objectives: Quality Education, Gender Equality, Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Reduced Inequalities, Sustainable Cities and Communities.
    • UN SDGs: Quality Education, Gender Equality, Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Reduced Inequalities, Sustainable Cities and Communities.
  6. Fair Business Conduct:

    • UN SDGs: Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Sustainable Cities and Communities, Peace, Justice and Strong Institutions, Partnership for the Goals.

The Impact Framework is designed to help investors shape meaningful and transparent impact objectives. It provides a comprehensive approach to sustainable investing by addressing key environmental and social issues, promoting responsible governance, and aligning with the broader goals of the UN SDGs. The impact objectives outlined within each theme offer specific targets for investors looking to make a positive contribution to the world while achieving financial returns.

Impact Framework (2024)
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