NEW YORK (August 31, 2021) — ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today enhanced its suite of dedicated EU Regulatory Solutions with automated portfolio reporting. Investors can generate discrete reports to facilitate compliance with EU Taxonomy reporting obligations and Sustainable Finance Disclosure Requirements (SFDR), including reporting against specific Principal Adverse Impact (PAI) indicators, as well as an amalgamated “EU Regulation” report.
Global financial market participants face a multitude of EU Sustainable Finance Regulations, increasing transparency and disclosure requirements for their investments and investment decision-making processes. Dr. Maximilian Horster, Head of ISS ESG said: “Navigating the complexities of the new ESG-related rules is now easier – upload your portfolio to ISS ESG’s online DataDesk platform and at the click of a button, get relevant and actionable insights regarding your portfolio’s regulatory compliance.” ISS ESG’s enhanced reporting solutions are designed to address a multitude of regulatory requirements, while deriving maximum value from ISS ESG’s proprietary data and methodologies. The intuitively designed reports’ key data and findings are presented through a combination of data visualization and raw numerical values in a tabular format which address numerous potential use cases and applications of regulatory data.
The EU Taxonomy Report includes a quick, bird’s-eye snapshot of the Taxonomy eligible portion of the portfolio, in addition to the full alignment assessment aggregated across all issuers within a user’s portfolio. This includes a view of EU Taxonomy alignment by Objective, covering Climate Change Adaptation and Mitigation requirements, with four more objectives to be added once the regulations have fully defined their activities. A view of the top 10 issuers and activities represented within the inputed portfolio is also included as a value-added benefit.
The SFDR Report will cover all mandatory datapoints for Corporate, Sovereign and Supranational Assets relating to specific PAI indicators and metrics plus 20 additional indicators providing users with ample flexibility to select the most relevant indicators for their business and investment strategy. It also addresses SFDR Level 1 disclosure obligations by leveraging assets from four underlying ISS ESG solutions – the ISS ESG Rating and Carbon Risk Rating to address the Sustainability Risks pillar, plus Norm-Based Research and SDG Impact Rating Issuer Flags to evidence the consideration of broader Adverse Impacts. Investors can use this data for their Adverse Impact statement, as well as to provide supporting evidence of the classification of products and portfolios into Articles 6, 8 and 9 of SFDR.
As of August 2021, the ISS ESG EU Taxonomy Solution already covers 7,900 corporate issuers and 190 sovereign and supranational issuers, with an anticipated increase to 60,000 issuers by Q4. The SFDR PAI solution currently has a baseline coverage of 7,400 corporate issuers, which increases up to 25,000 for certain datapoints.
About ISS ESG
ISS ESG solutions enable investors to develop and integrate responsible investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions. It 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
Executive Director, ISS