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ISS ESG’s Climate Impact Reporting Solution’s enhancements provide investors with up-to-date, decisive data and actionable intelligence for assessing and managing the impact of climate-related risks on their investments, supported by fully automated reporting available at the click of a mouse.

January 13, 2021

ISS ESG Launches Enhanced Analyses of Climate Physical Risks and Climate Scenarios in Climate Impact Report

NEW YORK (January 13, 2021) — ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today announced major enhancements to the Climate Physical Risks and Climate Scenarios Analyses within its established Climate Impact Reporting Solution.

Dr. Maximilian Horster, Managing Director, Head of Climate Solutions at ISS ESG said: “As investors seek to gain a better understanding of their exposure to climate-related risks, ISS ESG’s Climate Impact Reporting Solution’s enhancements provide investors with up-to-date, decisive data and actionable intelligence for assessing and managing the impact of climate-related risks on their investments, supported by fully automated reporting available at the click of a mouse.”

ISS ESG’s new Climate Physical Risk Analysis, within the Climate Impact Report, provides investors with in-depth, proprietary financial analysis to help assess the financial impact of physical climate risks on assets, issuers and portfolios. The ISS ESG climate physical risk assessment gives the investor a holistic overview of its exposure to physical climate risks. The assessment covers five of the most costly physical climate hazards across three scenarios, historical, most likely, and worst case. Granular corporate data is used to understand an issuer’s geographical activity profile and thereby its hazard exposure. Proprietary financial data is used to assess the Value at Risk from hazards on a granular basis, including not only owned but also rented and leased assets for a holistic analysis. The data can be used to assist with reporting according to the TCFD and other reporting frameworks.

ISS ESG’s new Climate Scenario Analysis can help investors align their portfolios in accordance with the latest scenarios from the International Energy Agency’s (IEA) World Energy Outlook. In response to the recent publication of third party research on climate scenario analysis, ISS ESG enhanced the existing methodology and underlying scenarios to reflect the most up-to-date data available. The updated data covers today’s planned and stated policies in relation to the emission reduction pathway needed in order to meet global climate and energy transition goals. The ISS ESG Climate Impact Reporting Solution now includes new scenarios based on the Paris-aligned Sustainable Development Scenario (SDS), Stated Policies Scenario (STEPS) and Current Policies Scenario (CPS). The solution also now includes the ISS ESG temperature score at both a company and portfolio level and looks at the relationship between the increase in emissions vs. the increase in temperature for the scenarios available in the IEA World Energy Outlook. A new Climate Target Assessment leveraging science-based & company-specific targets is also included in the enhancements.


By Dr. Maximilian Horster, Managing Director, Head of Climate Solutions at ISS ESG

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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

Media Contact:
Sarah Ball, Executive Director
+44-203-192-5728
sarah.ball@issgovernance.com

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