NEW YORK (October 29, 2021) — — ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today announced the forthcoming launch of its suite of dedicated Net Zero Solutions with automated portfolio reporting which will go live in Q1 2022.
Ahead of COP26, a significant number of global institutional investors have pledged commitments to reduce their investment portfolios’ CO2 emissions to Net Zero by 2050. Those investors will now need to track the alignment of their portfolios beyond the Paris Agreement’s aim of limiting global temperature rise to below 2°C, to a further science-based Net Zero target of limiting it to no more than 1.5°C. Investors are sharpening their focus on implementation and will need to monitor companies’ specific, substantive plans to reduce their carbon footprints with short, medium and long-term targets.
Dr. Maximilian Horster, Head of ISS ESG said: “ISS ESG Net Zero Solutions supports investors in identifying the most suitable KPIs, analysis, and data to transition portfolios and set relevant net zero targets in accordance with their net zero initiatives, and will enable them to provide meaningful Net Zero statements through a data driven approach with automated portfolio reporting.”
ISS ESG Net Zero Solutions enables investors to assess the extent to which their investments are aligned with a Net Zero scenario. Its Issuer Level Net Zero Alignment Data can be used to identify positive and negative performing companies against a range of individual climate related metrics, whilst the Net Zero Portfolio Report creates an aggregated view of a portfolio’s readiness for Net Zero, considering current and potential future emissions disclosure performance, fossil fuel exposure, potential future performance, climate mitigating revenue and target setting.
ISS ESG Net Zero Solutions’ distinct methodology for assessing Net Zero alignment is focused on companies’ substantiated commitments to achieving Net Zero by 2050, as well as whether they have established interim targets, and have a decarbonization strategy.
When launched in Q1 2022, ISS ESG Net Zero Solutions coverage will include 29,000 issuers for Climate data, 23,000 issuers for Energy and Extractives data and 8,000 issuers for EU Taxonomy eligibility data, powered by data and insights from a broad range of high-quality research products within the ISS ESG universe.
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 and performance through screening solutions and the proprietary financial measure, Economic Value Added. 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 fund, 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
Sarah Ball, Executive Director
Institutional Shareholder Services Inc.