Morningstar, Inc. announced the launch of the Morningstar® Low Carbon Transition Leaders (LCTL) Indexes?, the latest strategic collaboration between leading ESG ratings, research, and data provider Morningstar Sustainalytics and Morningstar Indexes. This series of nine new global, regional, and single country benchmarks is designed to help investors target a broad range of companies from every sector that are leading their peers in their readiness for?and action towards? transitioning to a low-carbon economy.

The indexes are underpinned by tangible, forward-looking metrics including the Sustainalytics Low Carbon Transition Ratings [3], which identify which companies are taking the most action toward aligning with net zero. The indexes identify climate transition leaders by grouping companies from the parent index by sector, ranking them according to their composite Low Carbon Transition Leaders Score and capturing the top scoring 50% of each sector by market cap. The Low Carbon Transition Leaders Score considers a company?s current carbon intensity as well as its management score from the Sustainalytics Low Carbon Transition Ratings.

The indexes also emphasize companies that report carbon emissions and are reducing their carbon intensity, as well as those whose business activities contribute positively to the environment. Companies included in the indexes are leading their peers in their approach to climate transition. Examples include Taiwan Semiconductor Manufacturing Company (TSMC).