NEW YORK (May 9, 2022) — ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today announced the launch of its Regulatory Sustainable Investment Solution, to support global financial market participants in defining their interpretation of sustainable investments, and allowing them to quantify the portion of funds, products and portfolios that meet those criteria. The solution facilitates the customization and optimization of an investor’s sustainable investment strategy, whilst addressing rapidly-evolving regulatory reporting requirements globally.
For investments within the European Union, the solution helps facilitate the fulfilment of SFDR obligations related to Article 8 & 9 disclosures, as well as assessing and quantifying the sustainability of funds and investment products that do not fall under the EU Taxonomy scope. The solution also helps with the emerging principles-based requirements of disclosure regimes in jurisdictions outside of the European Union, such as the U.S., Canada, Hong Kong, Singapore, Taiwan, India and the Philippines. It helps to define and quantify the percentage of sustainable investments within an investor’s ESG funds and investment products as may be directed by relevant evolving regulations, proposals and/or internal sustainable investment guidelines, and provides disclosure and transparency on sustainable investment strategies, criteria and implementation.
The Regulatory Sustainable Investment Solution considers four common pillars for ESG sustainable finance disclosure requirements – financially material ESG risks, contribution to environmental or social objectives, “do no significant harm” and broader adverse impacts, and good governance. It is powered by a broad range of high-quality ISS ESG solutions, including ESG Corporate Rating, SDG Solutions Assessment, SDG Impact Rating, Climate Data, Energy & Extractives Screening, Controversial Weapons, Norm-Based Research and SFDR PAI.
Till Jung, Managing Director and Global Head of ESG Products at ISS said: “The challenge of navigating the complexities of the various emerging ESG disclosure rules and frameworks across the globe has now been made easier by our new solution, which packages together the most relevant ISS ESG data points for clients into one single dataset, to help address regulatory reporting requirements globally. This toolkit type solution is designed to make clients’ lives easier, as it facilitates the customization and implementation of an investor’s global sustainable investment strategy, and the optimization of their reporting.”
As of May 2022, the Regulatory Sustainable Investment Solution covers a universe of more than 12,000 corporate issuers. For specific climate and social indicators, ISS ESG provides a significantly larger coverage universe of up to 35,000 corporate issuers.
The Regulatory Sustainable Investment Solution can also inform investors’ voting and engagement practices globally. It can be complemented by ISS ESG’s SFDR Collaborative Engagement Solution which allows investors to participate in a joint outreach and dialogue with companies on material ESG themes that are thematically aligned with key mandatory Principal Adverse Impact indicators within the European Union’s Sustainable Finance Disclosure Regulation.
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