Supports January 2024 Regulatory Reporting Requirements and Beyond
LONDON (November 15, 2023) — ISS ESG, the sustainable investment arm of ISS STOXX, today launched major enhancements to its dedicated EU Taxonomy Alignment Solution, to assist clients in meeting imminent and medium-term reporting deadlines for their products’ alignment with all six EU Taxonomy objectives, starting in January 2024.
By way of background, in June 2023, the European Commission approved EU Taxonomy criteria for economic activities making a substantial contribution to one or more of the remaining four (of the six) Taxonomy objectives, namely – sustainable use and protection of water and marine resources; transition to a circular economy; pollution prevention and control; and protection and restoration of biodiversity and ecosystems.
The ISS ESG EU Taxonomy Alignment solution has been expanded to include the recently introduced new technical screening criteria for 45 activities related to the remaining four objectives as well as the amended criteria for 26 existing activities related to the existing two objectives (climate change mitigation and climate change adaptation). The enhanced solution provides 456 new dedicated factors to cover the remaining four objectives, data from which will flow directly into existing top entity level factors. The data can be obtained via multiple delivery channels, per clients’ needs.
Till Jung, Managing Director, Head of ISS ESG said: “Investors currently face a significant discrepancy between the availability of data reported by investee companies and the granularity of data required to fulfill their own EU Taxonomy reporting obligations. Modelled data can be used to bridge both this gap and the gaps created by the staggered implementation of EU Taxonomy requirements. ISS ESG’s newly enhanced, comprehensive EU Taxonomy Alignment Solution, which uses both modelled and reported data, is now uniquely placed to help clients address the major EU taxonomy-related reporting challenges.” In addition, clients can use the enhanced solution to define targets, limits and policies to align with environmental criteria, assess the performance of investments against a tangible environmental taxonomy and monitor their portfolios.
Modelled data on both eligibility and alignment will be available from November 2023. Company-reported data on eligibility for the four remaining objectives will be available from January 2024, and then data on alignment from January 2025 for non-financial companies, and from 2026 for financial companies. ISS ESG will collect the available reported data from January 2024.
###
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 EU Taxonomy Alignment Solution
Supports January 2024 Regulatory Reporting Requirements and Beyond
LONDON (November 15, 2023) — ISS ESG, the sustainable investment arm of ISS STOXX, today launched major enhancements to its dedicated EU Taxonomy Alignment Solution, to assist clients in meeting imminent and medium-term reporting deadlines for their products’ alignment with all six EU Taxonomy objectives, starting in January 2024.
By way of background, in June 2023, the European Commission approved EU Taxonomy criteria for economic activities making a substantial contribution to one or more of the remaining four (of the six) Taxonomy objectives, namely – sustainable use and protection of water and marine resources; transition to a circular economy; pollution prevention and control; and protection and restoration of biodiversity and ecosystems.
The ISS ESG EU Taxonomy Alignment solution has been expanded to include the recently introduced new technical screening criteria for 45 activities related to the remaining four objectives as well as the amended criteria for 26 existing activities related to the existing two objectives (climate change mitigation and climate change adaptation). The enhanced solution provides 456 new dedicated factors to cover the remaining four objectives, data from which will flow directly into existing top entity level factors. The data can be obtained via multiple delivery channels, per clients’ needs.
Till Jung, Managing Director, Head of ISS ESG said: “Investors currently face a significant discrepancy between the availability of data reported by investee companies and the granularity of data required to fulfill their own EU Taxonomy reporting obligations. Modelled data can be used to bridge both this gap and the gaps created by the staggered implementation of EU Taxonomy requirements. ISS ESG’s newly enhanced, comprehensive EU Taxonomy Alignment Solution, which uses both modelled and reported data, is now uniquely placed to help clients address the major EU taxonomy-related reporting challenges.” In addition, clients can use the enhanced solution to define targets, limits and policies to align with environmental criteria, assess the performance of investments against a tangible environmental taxonomy and monitor their portfolios.
Modelled data on both eligibility and alignment will be available from November 2023. Company-reported data on eligibility for the four remaining objectives will be available from January 2024, and then data on alignment from January 2025 for non-financial companies, and from 2026 for financial companies. ISS ESG will collect the available reported data from January 2024.
###
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 Releases Annual Outlook Report on Climate & Voting – 2020 Review and Global Trends
2022 Australia and New Zealand Season Review
The IPCC’s Sixth Assessment Report on Climate: Action Now!
Implications of Index Reconstitutions: Free Carbon Alpha?