NEW YORK (February 22, 2021) – ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today launched ISS ESG Scorecards, an intuitive and interactive scoring tool enabling financial institutions, including private equity firms, to conduct custom and comprehensive ESG performance and risk assessments of private companies.Nineteen industry-specific ESG Scorecards are currently available with additional industries to be added on a going-forward basis.
ISS’ ESG Scorecards facilitate industry-specific scoring of a private company’s ESG risk profile, drawing on the long-established and rigorously developed ISS ESG Corporate Rating methodology. Kristina Rüter, Managing Director and Global Head of Methodology at ISS ESG said: “The methodology takes into consideration the entire value chain and materiality is reflected in the configuration and weight of each element while standardized assessment factors facilitate consistent and comparable assessments.” Use cases for ESG Scorecards include the assessment of ESG risk exposure of investee companies during due diligence processes for private equity portfolios, the evaluation of ESG risk during credit risk assessment, and to facilitate engagement with private companies regarding sustainability.
Each ESG Scorecard includes an Industry Risk Profile that provides an overview and description of key sustainability risks as well as three, standard interactive scorecard elements covering Climate, Social, and Governance to address general sustainability risks and requirements. It also provides a further interactive assessment focused on key issues that are both industry-specific and viewed as material. A classification of the impact of a company’s products and services under the UN Sustainable Development Goals (SDGs) and information on the relevance of the EU Sustainable Finance Taxonomy is also provided.
Till Jung, Managing Director and Global Head of ESG Products at ISS said: “Sustainability-related good practice frameworks and regulations are rapidly evolving and driving demand for ESG performance and risk assessments of private companies. Our decades-long ESG research and assessment experience reflected in the ISS ESG Scorecards enables industry-specific assessments that provide focus on the material issues most critical to clients.”
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
Sarah Ball, Executive Director