A new rating of sustainability based on the Morningstar Sustainability Rating
Nowadays, investors seek beyond the financial performance of their investments, including Environmental, Social, and Governance (ESG) criteria in the decision-making process. To this effect, there are currently suppliers who offer different methodologies to evaluate the ESG factors that companies ap...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | Spanish |
| Published: |
Elsevier
2023-01-01
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| Series: | European Research on Management and Business Economics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444883422000146 |
| _version_ | 1828049008876060672 |
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| author | Maria-Teresa Sorrosal-Forradellas Maria-Glòria Barberà-Mariné Laura Fabregat-Aibar Xiaoni Li |
| author_facet | Maria-Teresa Sorrosal-Forradellas Maria-Glòria Barberà-Mariné Laura Fabregat-Aibar Xiaoni Li |
| author_sort | Maria-Teresa Sorrosal-Forradellas |
| collection | DOAJ |
| description | Nowadays, investors seek beyond the financial performance of their investments, including Environmental, Social, and Governance (ESG) criteria in the decision-making process. To this effect, there are currently suppliers who offer different methodologies to evaluate the ESG factors that companies apply in their businesses. In 2016, Morningstar launched the Morningstar Sustainability Rating for mutual funds, which provides information on how well mutual funds incorporate sustainable assets. This rating is obtained from the Morningstar Portfolio Sustainability Score, the calculation system of which was modified and improved in 2018. However, an important drawback remains to be overcome because the score is only calculated if at least 67% of the portfolio assets have an ESG score and it does not take assets without an ESG score into account. This paper aims to provide a more reliable rating for investors because it proposes the inclusion of all the assets in the fund valuation, regardless of whether they have an ESG score, using fuzzy set theory and specifically triangular fuzzy numbers. |
| first_indexed | 2024-04-10T19:04:36Z |
| format | Article |
| id | doaj.art-7ea456403602412c9a23b077d2c4fd9c |
| institution | Directory Open Access Journal |
| issn | 2444-8834 |
| language | Spanish |
| last_indexed | 2024-04-10T19:04:36Z |
| publishDate | 2023-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | European Research on Management and Business Economics |
| spelling | doaj.art-7ea456403602412c9a23b077d2c4fd9c2023-01-31T04:09:25ZspaElsevierEuropean Research on Management and Business Economics2444-88342023-01-01291100208A new rating of sustainability based on the Morningstar Sustainability RatingMaria-Teresa Sorrosal-Forradellas0Maria-Glòria Barberà-Mariné1Laura Fabregat-Aibar2Xiaoni Li3University Rovira i Virgili, Faculty of Business and Economics, Department of Business Management, Av. Universitat 1, Reus 43204, SpainUniversity Rovira i Virgili, Faculty of Business and Economics, Department of Business Management, Av. Universitat 1, Reus 43204, SpainCorresponding author.; University Rovira i Virgili, Faculty of Business and Economics, Department of Business Management, Av. Universitat 1, Reus 43204, SpainUniversity Rovira i Virgili, Faculty of Business and Economics, Department of Business Management, Av. Universitat 1, Reus 43204, SpainNowadays, investors seek beyond the financial performance of their investments, including Environmental, Social, and Governance (ESG) criteria in the decision-making process. To this effect, there are currently suppliers who offer different methodologies to evaluate the ESG factors that companies apply in their businesses. In 2016, Morningstar launched the Morningstar Sustainability Rating for mutual funds, which provides information on how well mutual funds incorporate sustainable assets. This rating is obtained from the Morningstar Portfolio Sustainability Score, the calculation system of which was modified and improved in 2018. However, an important drawback remains to be overcome because the score is only calculated if at least 67% of the portfolio assets have an ESG score and it does not take assets without an ESG score into account. This paper aims to provide a more reliable rating for investors because it proposes the inclusion of all the assets in the fund valuation, regardless of whether they have an ESG score, using fuzzy set theory and specifically triangular fuzzy numbers.http://www.sciencedirect.com/science/article/pii/S2444883422000146G00G2G24 |
| spellingShingle | Maria-Teresa Sorrosal-Forradellas Maria-Glòria Barberà-Mariné Laura Fabregat-Aibar Xiaoni Li A new rating of sustainability based on the Morningstar Sustainability Rating European Research on Management and Business Economics G00 G2 G24 |
| title | A new rating of sustainability based on the Morningstar Sustainability Rating |
| title_full | A new rating of sustainability based on the Morningstar Sustainability Rating |
| title_fullStr | A new rating of sustainability based on the Morningstar Sustainability Rating |
| title_full_unstemmed | A new rating of sustainability based on the Morningstar Sustainability Rating |
| title_short | A new rating of sustainability based on the Morningstar Sustainability Rating |
| title_sort | new rating of sustainability based on the morningstar sustainability rating |
| topic | G00 G2 G24 |
| url | http://www.sciencedirect.com/science/article/pii/S2444883422000146 |
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