Our efforts to return Morningstar Sustainalytics to growth include an ongoing focus on refining and enhancing our product portfolio. This includes several key initiatives:
- In climate, we are focused on regulatory and reporting use cases and are also exploring opportunities to support emerging needs within the banking client segment.
- Beyond climate, we are targeting improvements to our data set and solutions more broadly. Earlier this year, we launched an enhancement of our ESG Risk Ratings as well as the extension of our EU Action Plan Solutions. Our roadmap includes the introduction of new impact metrics, expanding the availability of data supporting our ESG Risk Ratings, and making improvements to our regulatory data set and data to support the European Union’s Corporate Sustainability Reporting Directive (CSRD). As CSRD implementation is rolled out in 2025, the initial focus will be on supporting regulatory reporting in our traditional client base. We expect further opportunities as CSRD requirements extend to other types of companies in 2026 and 2027.
- We are committed to strengthening our market-leading second party-opinion product and finding opportunities to leverage our strength there in investor solutions, especially in supporting banks exploring transition-financing investment opportunities.
Finally, we’ve noted a shift in our licensed ratings product to focus on licensing existing ESG Risk Ratings as we’ve moved away from a model under which corporate clients could contract with us to provide a rating. The change in our product offering has led to a recent decline in revenue for the licensed ratings product in corporate solutions, but we believe it better positions us to scale that product over time.