Sustainalytics is a provider of ESG ratings that is now owned by mutual fund research firm Morningstar. Scoring provided by Sustainalytics is often used by active fund managers. Robo-advisor Personal Capital also uses Sustainalytics ratings for their Socially Responsible Personal Strategy.
Sustainalytics ESG ratings are divided into three pillar scores (Environmental, Social, and Governance). The overall score is the average of the three pillar scores. Sustainalytics has over 200 analysts who use data including company reporting, external data such as greenhouse gas emissions, and third-party research. Company scores are updated annually. Analyst judgment can override some of the data-driven assessments.