Preamble 

ISS Sustainability Solutions’ Quarterly Engagement Update series highlights key trends that emerge through activities conducted on behalf of participating investors under ISS Sustainability Solutions’ Collaborative Engagement Services. These services allow investors to participate in cost-effective joint outreach and dialogue with companies on material sustainability-related themes.  

The services also support global investor compliance and reporting requirements with regard to voluntary and statutory stewardship frameworks, including the Principles for Responsible Investment (PRI), the EU Sustainable Finance Disclosure Regulation (SFDR), the EU Shareholder Rights Directive II (SRD II), and stewardship codes across the globe.  

The Collaborative Engagement Services leverage ISS Sustainability Solutions’ expertise, research, and data to identify key performance indicators for corporate improvement and momentum that are aligned with recognized standards such as the United Nations Sustainable Development Goals (SDGs). 

Through collaborative engagement, institutional investors can strengthen their focus on sustainability issues and effectively convey their concerns to investee company management. ISS Sustainability supports this process by facilitating engagement on behalf of participating clients, driving change through active ownership and constructive dialogue. Key areas of focus include enhancing disclosure, encouraging improved sustainability performance, and mitigating sustainability risks. 

ISS Sustainability Solutions’ Collaborative Engagement Services consist of two elements: 

• The Norm-Based Engagement Solution (formerly known as ‘Pooled Engagement’) is based on outreach to a select universe of upwards of 100 public companies annually. Companies are identified based on their involvement in alleged violations of human rights and labor rights and breaches of environment- and corruption-related recognized international standards, including the OECD Guidelines for Multinational Enterprises, the UN Global Compact, and the UN Guiding Principles on Business and Human Rights. 

• The Thematic Engagement Solution – launched in 2022 – prioritizes outreach to a select universe of 30-50 public companies per theme over a two-year or three-year engagement cycle. It focuses on companies identified as underperforming in the areas of Net Zero, Gender Equality, Water, and Biodiversity. 

Collaborative Engagement Activity  

In Q2 2025, ISS Sustainability Solutions facilitated engagement on behalf of signatory investors with a total of 127 companies across 143 topics. ISS Sustainability Solutions conducted engagements with 54 companies under Norm-Based Engagement, the Thematic Engagement solution facilitated engagement with 75 companies, and two companies were engaged with both solutions. 

Table 1: Collaborative Engagement Activity, Q2 2025 

Companies engaged with	Topics engaged on
127	143

Source: ISS Sustainability Solutions 

Figure 1 shows the distribution of engagement activities for Q2 2025. The engagement intensity was very high during the quarter, particularly for written responses, with 124 written responses received and 14 engagement meetings conducted on behalf of investors. 

Figure 1: Distribution of Engagement Activities, Q2 2025 

The companies engaged with are spread out globally, with domiciles in North America (37%); Europe, the Middle East, and Africa (EMEA) (31%); Asia-Pacific (APAC) (30%); and Latin America (2%).  

Figure 2: Regional Distribution 

The most engaged countries were the United States in North America; Japan and China in APAC; and Switzerland and Ireland in EMEA. 

Figure 3: Geographic Distribution 

Across the 143 topics that ISS Sustainability Solutions facilitated engagement on during Q2 2025, Environment topics (50%) and Social topics (47%) were well balanced, while 3% of the topics concerned the Governance pillar.  

Figure 4: Sustainability Areas Breakdown 

A detailed analysis of the sustainability topics breakdown reveals that, among the Environment-related engagements facilitated by ISS Sustainability Solutions in Q2 2025, the most frequently discussed topics were violation of Environment Norms, Water, and Biodiversity. Within the area of Environment Norms, the most common sub-topics focused on controversies related to pollution and biodiversity. 

Among Social topics, most of the engagements focused on Gender Equality, followed closely by the violation of Human Rights Norms and Labor Rights Norms. In the area of Human Rights Norms, the most common sub-topics included controversies related to right to life, consumer rights, and living standards. Within Labor Rights Norms, the most frequently discussed issues were union rights, working conditions, and living wages.  

Figure 5: Sustainability Topics Breakdown 

The topics that ISS Sustainability Solutions facilitated collaborative engagement on in Q2 2025 covered 13 of the UN Sustainable Development Goals (SDGs). The most frequently addressed SDGs were SDG 6: Clean Water and Sanitation, followed by SDG 15: Life on Land and SDG 5: Gender Equality. 

Figure 6: SDG Breakdown 

Future Action 

For over a decade, a mix of soft and hard law initiatives, coupled with growing investor demand, has driven the global expansion of active ownership practices—particularly engagement. These trends have fostered more standardized frameworks for investment stewardship, enabling investors to seek meaningful change in the companies they invest in. The most recent development in this area is the publication on June 3, 2025, of the UK Stewardship Code 2026. 

ISS Sustainability Solutions’ Collaborative Engagement Services, including Norm-Based Engagement and the Thematic Engagement Solution, are available to support investors in this important area of their stewardship practice. In 2024, ISS Sustainability Solutions launched the second cycle of the Thematic Engagement services, with the average response rate already reaching 89% as of the end of August, while certain escalation steps are still pending. In October 2025, ISS Sustainability Solutions will invite participating investors to take part in new corporate engagements addressing potential breaches of international norms, as part of its Q3 2025 Norm-Based Engagement cycle. 

 
Explore ISS STOXX solutions mentioned in this report: 

• Develop engagement strategies, define achievable engagement objectives, and manage your engagement process with the Norm-Based Engagement Solution and the Thematic Engagement Solution. 

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By:

Shweta Shah, Sustainability Engagement Coordinator, ISS Sustainability Solutions   

Sujay Pan, Sustainability Engagement Coordinator, ISS Sustainability Solutions   

Loïc Dessaint, Head of Sustainability Engagement, ISS Sustainability Solutions