Morningstar launches index tracking LGBTQ+ inclusive companies

New index adds to firm's growing range of socially focused indexes.

When better than Pride Month for Morningstar to launch a new index focused on companies that are supportive of the LGBTQ+ community.

The new Morningstar Developed Markets LGBTQ+ Leaders Index is designed to deliver exposure to 100 large and mid-cap companies from across regions and sectors that demonstrate strong LGBTQ+ inclusive policies and practices.

Companies are screened for controversial product involvement, UN Global Compact compliance, and severe ESG controversies using Morningstar Sustainalytics leading ESG data and research and are then ranked by ExecuPride score and size with the 100 highest scorers making it into the index.

“We are thrilled to add this new capability to our growing suite of indexes to empower investors while expanding our global sustainability index offering,” said Ron Bundy, president of Morningstar Indexes & Morningstar Sustainalytics. “Our new index fulfills a market need by enabling investors to tap into global companies with leading LGBTQ+ policies to pursue their investment objectives, whether for values alignment, or to pursue investment opportunity, or a combination.”

The new index enhances Morningstar’s growing suite of socially focused indexes which also includes the Morningstar Minority Empowerment Index, Gender Diversity Index and Women’s Empowerment Index.

“The index industry has made great strides in recent years to develop products that fall under the ‘S’ in ESG,” said Rob Edwards, global director of ESG Product Management, Morningstar Indexes. “ Yet, while there are a number of broad socially focused indexes available in the market today, few options focus on sexual orientation or gender identity. In developing the Morningstar Developed Markets LGBTQ+ Leaders Index, our objective was to bring greater transparency to LGBTQ+ practices and policies in the workplace and how companies are incorporating these approaches into their strategy. We opted to do this in a way that stresses an objective, data-based approach.”