Morningstar Sustainalytics has introduced a suite of new tools to support companies and investors in complying with emerging EU regulatory requirements under the EU Sustainable Finance Action Plan. The offerings include solutions aligned with the Corporate Sustainability Reporting Directive (CSRD), the European Securities and Markets Authority (ESMA) fund naming rules, and the latest iteration of its EU Taxonomy solution.

The CSRD, which expands the number of companies required to report sustainability data from 12,000 to over 50,000, mandates more detailed disclosures regarding environmental, social, and governance (ESG) factors. Sustainalytics’ new CSRD Aligned Data solution provides insights based on over 450 criteria from the European Sustainability Reporting Standards (ESRS), covering up to 25,000 companies. This solution helps investors analyze ESG impacts and comply with CSRD regulations, which took effect in 2024, with the first reports due in 2025.

Sustainalytics has also launched a tool to address ESMA's new guidelines on ESG fund naming, designed to curb greenwashing and set minimum standards for funds using ESG-related terms. The solution assists investors in aligning with the guidelines and customizing exclusions based on regulatory requirements.

Additionally, Sustainalytics has enhanced its EU Taxonomy solution, providing comprehensive data on six environmental objectives, including climate change mitigation and the transition to a circular economy. This tool aids investors in streamlining regulatory reporting and tracking green investments. According to the company, over 1,300 non-financial firms have already begun reporting Taxonomy-related activities, with aligned capital investments exceeding USD 500 billion.

Sustainalytics' suite of solutions reflects the growing regulatory complexity in ESG reporting and the need for reliable data to meet evolving standards.