Report enables investors to compare a portfolio’s biodiversity risk and impact against a benchmark, among other use cases
NEW YORK (January 18, 2024) — ISS ESG, the sustainable investment arm of ISS STOXX, today announced the launch of its Biodiversity Impact Assessment Tool (BIAT) Portfolio Report, which enables investors to compare a portfolio’s biodiversity risk and impact against a benchmark, and is a key enhancement to its holistic BIAT solution launched in 2022. The full BIAT solution coverage universe has also been expanded to include 17,000+ companies, with a dataset of approximately 650+ individual factors.
The new ISS ESG BIAT Portfolio Report enables investors to compare their portfolio’s biodiversity impact against a benchmark, view the breakdown of impact per sector, country, and biodiversity drivers, and to examine the biodiversity impact attribution to sector allocation versus issuer selection. It also allows investors to view the biodiversity impact of the top and bottom five holdings in their portfolios, observe economic activities with the largest impact, assess for dependencies on ecosystem services (including materiality classification) as well as evaluate the portfolio’s impact based on a set of additional TNFD-related disclosures.
Till Jung, Head of ISS ESG said: “The new portfolio report is a timely enhancement to ISS ESG’s Biodiversity Impact Assessment Tool (BIAT), with its comprehensive package of biodiversity datapoints and robust impact assessment methodology, to help investors measure their portfolios’ biodiversity impact and address evolving regulatory reporting requirements globally.”
By way of background, the ISS ESG BIAT solution enables investors to better understand and assess biodiversity risk in their portfolios based on a life cycle impact assessment (LCIA) methodology, which allows for quantification of drivers of biodiversity loss at a regional scale. The results are presented in the form of two of the most commonly used biodiversity Footprinting metrics: potentially disappeared fraction of species (PDF) and mean species abundance (MSA). In addition to regionalized modelled data, the LCIA assessment also takes into account company-specific sets of information, including ISS ESG’s proprietary Corporate Rating and SDG assessment related to nature and biodiversity indicators. Together, the biodiversity impact assessment, and the ecosystem services dependency assessment address the topic of double materiality, allowing users to assess both the impact and risk exposure of companies.
The ISS ESG BIAT and its new portfolio report have been developed to support investors in light of evolving global frameworks, including the UN Convention on Biological Diversity and the Task Force on Nature-related Financial Disclosures (TNFD), as well as specific local-market and regional disclosure and reporting requirements such as Article 29 of the French Law on Energy and Climate, plus relevant EU Taxonomy and Sustainable Finance Disclosure Regulations.
About ISS ESG
ISS ESG solutions enable investors to develop and integrate sustainable investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions. ISS ESG also provides climate data, analytics, and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes. In addition, ESG solutions cover corporate and country ESG research and ratings enabling its clients to identify material social and environmental risks and opportunities. For more information, please visit us at: www.iss-esg.com
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Sarah Ball
Executive Director, Communications
press@issgovernance.com
ISS ESG Enhances Biodiversity Impact Assessment Tool with Portfolio Report
Report enables investors to compare a portfolio’s biodiversity risk and impact against a benchmark, among other use cases
NEW YORK (January 18, 2024) — ISS ESG, the sustainable investment arm of ISS STOXX, today announced the launch of its Biodiversity Impact Assessment Tool (BIAT) Portfolio Report, which enables investors to compare a portfolio’s biodiversity risk and impact against a benchmark, and is a key enhancement to its holistic BIAT solution launched in 2022. The full BIAT solution coverage universe has also been expanded to include 17,000+ companies, with a dataset of approximately 650+ individual factors.
The new ISS ESG BIAT Portfolio Report enables investors to compare their portfolio’s biodiversity impact against a benchmark, view the breakdown of impact per sector, country, and biodiversity drivers, and to examine the biodiversity impact attribution to sector allocation versus issuer selection. It also allows investors to view the biodiversity impact of the top and bottom five holdings in their portfolios, observe economic activities with the largest impact, assess for dependencies on ecosystem services (including materiality classification) as well as evaluate the portfolio’s impact based on a set of additional TNFD-related disclosures.
Till Jung, Head of ISS ESG said: “The new portfolio report is a timely enhancement to ISS ESG’s Biodiversity Impact Assessment Tool (BIAT), with its comprehensive package of biodiversity datapoints and robust impact assessment methodology, to help investors measure their portfolios’ biodiversity impact and address evolving regulatory reporting requirements globally.”
By way of background, the ISS ESG BIAT solution enables investors to better understand and assess biodiversity risk in their portfolios based on a life cycle impact assessment (LCIA) methodology, which allows for quantification of drivers of biodiversity loss at a regional scale. The results are presented in the form of two of the most commonly used biodiversity Footprinting metrics: potentially disappeared fraction of species (PDF) and mean species abundance (MSA). In addition to regionalized modelled data, the LCIA assessment also takes into account company-specific sets of information, including ISS ESG’s proprietary Corporate Rating and SDG assessment related to nature and biodiversity indicators. Together, the biodiversity impact assessment, and the ecosystem services dependency assessment address the topic of double materiality, allowing users to assess both the impact and risk exposure of companies.
The ISS ESG BIAT and its new portfolio report have been developed to support investors in light of evolving global frameworks, including the UN Convention on Biological Diversity and the Task Force on Nature-related Financial Disclosures (TNFD), as well as specific local-market and regional disclosure and reporting requirements such as Article 29 of the French Law on Energy and Climate, plus relevant EU Taxonomy and Sustainable Finance Disclosure Regulations.
About ISS ESG
ISS ESG solutions enable investors to develop and integrate sustainable investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions. ISS ESG also provides climate data, analytics, and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes. In addition, ESG solutions cover corporate and country ESG research and ratings enabling its clients to identify material social and environmental risks and opportunities. For more information, please visit us at: www.iss-esg.com
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Sarah Ball
Executive Director, Communications
press@issgovernance.com
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