Morningstar Rolls Out LGBTQ+ Leaders Index to Promote Inclusivity in Financial Markets

In a significant move towards amplifying diversity and inclusion within the financial world, Morningstar, Inc. (Nasdaq: MORN) has unveiled its latest offering—the Morningstar Developed Markets LGBTQ+ Leaders Index. Designed to spotlight 100 large- and mid-cap companies excelling in LGBTQ+ inclusive policies across various sectors and regions, this initiative aims to set a new benchmark in corporate equality and visibility.

A Step Forward in Inclusive Investing

Morningstar’s LGBTQ+ Leaders Index stands out as a pivotal addition to its suite of socially driven indexes, which include the Minority Empowerment Index, Gender Diversity Index, and Women’s Empowerment Index. The core idea behind these indexes is to offer investors not just financial returns but also the satisfaction of aligning their investments with their values, fostering a more equitable and inclusive society.

Ron Bundy, President of Morningstar Indexes & Morningstar Sustainalytics, highlighted the importance of this launch, stating, “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, investment opportunity, or a combination.”

Methodology Rooted in Data and Research

The index leverages Morningstar Sustainalytics’ ESG data and research, coupled with ExecuPride’s advanced data science methodologies, to meticulously screen and rank companies. Starting with a vetting process that checks for controversial product involvement, UN Global Compact compliance, and severe ESG controversies, companies are then ranked based on their ExecuPride scores and size. The top 100 companies are those that showcase exemplary LGBTQ+ inclusive policies, initiatives, and leadership representation.

Rob Edwards, Global Director of ESG Product Management at Morningstar Indexes, elaborated, “While there are many broad socially focused indexes available, few concentrate on sexual orientation or gender identity. The aim was to bring greater transparency to LGBTQ+ practices and policies in the workplace, adopting an objective, data-based approach.”

Consulting the Community

In developing this index, Morningstar collaborated with key LGBTQ+ organisations like LGBT Great and myGwork, along with consulting their own DEI leads. This step ensures that the index is not just a tick-box exercise but a genuine effort to reflect the concerns and aspirations of the LGBTQ+ community.

Sector and Regional Diversity

The index is not limited to any single sector or region, embracing a wide variety of industries and geographies. Top representatives currently include notable companies like Eli Lilly & Co., JP Morgan Chase, Alphabet, Apple, and Johnson & Johnson. These firms have shown substantial commitment to creating safe, inclusive environments for LGBTQ+ employees and have leaders who advocate for LGBTQ+ rights and visibility.

Broader Implications for the LGBTQ+ Community

The launch of Morningstar’s LGBTQ+ Leaders Index is not only a win for diversity in the corporate world but also carries broader societal implications. By highlighting and promoting companies that champion LGBTQ+ inclusivity, Morningstar is setting a standard for what corporate responsibility should look like. This initiative underscores the value of aligning business practices with inclusive policies, not just as a moral imperative but also as a sustainable business strategy.

Moreover, it empowers LGBTQ+ investors and allies to channel their investments towards companies that resonate with their identities and beliefs. Such initiatives hold the potential to influence workplace cultures across the globe positively, encouraging more firms to adopt inclusive practices to meet these newly established standards.

Concluding Thoughts

The introduction of the Morningstar Developed Markets LGBTQ+ Leaders Index marks a significant step forward in the journey towards financial and social inclusion. It sends a potent message to global markets: investing in diversity and inclusivity is not just ethical but also economically advantageous. For the LGBTQ+ community and allies, this represents a promising way to leverage their financial power to foster change, making it clear that inclusivity and equity are indispensable components of tomorrow’s business landscape.

By creating spaces for LGBTQ+ visibility within the financial sector, Morningstar is helping to craft a more inclusive future—one where diversity is seen not just as a metric for success but as foundational to it.