DBRS Morningstar Powers Credit Ratings Research with Morningstar Sustainalytics Climate Risk Data

DBRS Morningstar, the world’s fourth-largest credit rating agency, has selected Morningstar Sustainalytics as a provider for property-level climate hazard risk data, effective 3 October 2023.

DBRS Morningstar analytical teams will consider Morningstar Sustainalytics global data on physical risks related to climate hazards, including different time horizons and climate change pathways, in its research and commentary across all asset classes.

“Physical climate risk data is becoming increasingly crucial to provide a comprehensive analysis, especially in sectors closely linked to property and casualty, such as insurance, and residential and commercial mortgage-backed securities,” said Christian Aufsatz, head of European structured finance at DBRS Morningstar. “Through DBRS Morningstar research, we aim to arm issuers, investors, and other market participants with informed opinions as they navigate these risks in a credit environment.”

Morningstar Sustainalytics, a leading global provider of ESG research, ratings, and data, offers a suite of climate solutions* to provide insights for identifying, assessing, and managing climate-related investment risks and opportunities. The firm's dataset measuring climate hazard risk for properties can help users measure the potential financial impacts of a real estate asset’s direct exposure to physical climate risks by projecting expected damages.

“With the frequency and intensity of climate-related hazards like flooding, extreme heat, and wildfires increasing globally, it becomes critical for banks, insurers, and investors to consider financial resiliency related to physical climate risks,” said Azadeh Sabour, senior vice president, climate solutions at Morningstar Sustainalytics. “The metrics for measuring climate hazards enable stakeholders affected by impacts on real estate assets to identify and manage asset exposure and improve risk management.”

To learn more about ESG risks and credit ratings research, please visit our dedicated ESG hub at www.dbrsmorningstar.com/esg.

*For more information, please visit: https://www.sustainalytics.com/investor-solutions/climate-solutions/climate-research.

About DBRS Morningstar
DBRS Morningstar is a leading provider of independent rating services and opinions for corporate and sovereign entities, financial institutions, and project and structured finance instruments globally. Rating more than 4,000 issuers and 60,000 securities, it is the fourth-largest credit rating agency in the world.

DBRS Morningstar empowers investor success by bringing more transparency and a much-needed diversity of opinion in the credit rating industry. Its approach and size allow it to be nimble enough to respond to customers' needs in their local markets, but large enough to provide the necessary expertise and resources they require. Market innovators choose to work with DBRS Morningstar because of its agility, tech-forward approach, and exceptional customer service. DBRS Morningstar is the next generation of credit ratings. To learn more, visit dbrsmorningstar.com.

About Morningstar Sustainalytics
Morningstar Sustainalytics is a leading ESG data, research, and ratings firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world's leading asset managers and pension funds who incorporate ESG information and assessments into their investment processes. The firm also works with hundreds of companies and their financial intermediaries to help them consider material sustainability factors in policies, practices, and capital projects. Morningstar Sustainalytics has analysts around the world with varied multidisciplinary expertise across more than 40 industry groups. For more information, visit www.sustainalytics.com.

Morningstar Sustainalytics produces various metrics, ratings, and assessments, which include assumptions of future events, which may or may not occur or may differ significantly from what was assumed. These metrics, ratings, and assessments are statements of opinions, subject to change, are not to be considered as guarantees, and should not be used as the sole basis for investment decisions. Morningstar Sustainalytics does not provide investment advice or any other form of (financial) advice and nothing within this press release constitutes such advice.

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For more information about this press release, please contact Dennis Ferreira at [email protected].