As part of the larger 2022 Morningstar Investable World campaign, Morningstar sought to create an interactive visualization showcasing a variety of ESG topics and highlighting the maturity of sustainable investing through Morningstar data.
Inspired by the campaign's branding and its central “circular” motif, we designed a radial visualization. Each wedge of the visualization represents an ESG fund available in the Morningstar universe. Combining a branded visual with powerful controls offers exceptional flexibility for storytelling. The visualization focuses on addressing five key questions that investors might have:
How mature are ESG topics?
- There are multiple ways to measure maturity. One method is to count the number of funds within each topic. Sorting all funds by topic reveals how each theme compares to others. Each theme contains a varying number of funds, demonstrating how some ESG themes (e.g., Energy) are significantly more mature than others (e.g., Community). Users can select their preferred themes using the topic menu. Another indicator of maturity is fund size. Sorting funds by Assets Under Management (AUM) illustrates that there are substantially more large Energy funds compared to other themes.
What do funds say about their investment intentions?
- There are multiple ways to measure maturity. One method is to count the number of funds within each topic. Sorting all funds by topic reveals how each theme compares to others. Each theme contains a varying number of funds, demonstrating how some ESG themes (e.g., Energy) are significantly more mature than others (e.g., Community). Users can select their preferred themes using the topic menu. Another indicator of maturity is fund size. Sorting funds by Assets Under Management (AUM) illustrates that there are substantially more large Energy funds compared to other themes.
How much risk are these funds exposed to?
- Sorting the funds by Morningstar Sustainability Rating shows the amount of ESG Risk each fund is exposed to. The higher the rating, the lower the risk.
Do ESG funds drive ESG impact?
- Regardless of a fund's declared intention to make an impact in its prospectus, Morningstar assesses its actual impact by analyzing the fund's revenue alignment with its underlying investments. Sorting funds by one of the five impact themes reveals, for instance, that Water funds generally exhibit a higher impact compared to other themes.
How do these funds perform?
- When considering ESG investing, investors often prioritize either mitigating ESG risk or driving ESG impact. However, financial performance remains a crucial factor. Sorting funds by annualized returns reveals that energy funds tend to outperform others.
The visualization debuted at the annual Morningstar Investment Conference. The complete exhibit comprised an interactive visualization displayed on four 75-inch touchscreens and a dynamic animated sequence for the large LED display. To extend the visualization's lifespan beyond the conference, it was adapted into a standalone web application accessible from the Morningstar Investable World campaign website.
The project was a collaborative effort involving research, branding, marketing, design, and technology teams. The final product exemplifies how complex data can be transformed into insights through simple visuals and interactivity, enabling the discovery of diverse narratives.
