ISS ESG Launches Customizable Portfolio Climate Impact Reporting Solution for Investors
ISS ESG, the sustainable investment-focused arm of ISS STOXX, announced today the launch of launched a customizable version of its Climate Impact Report, designed to help investors assess and communicate their climate-related target setting, risk management, reporting, and engagement activities.
ISS ESG’s Climate Impact Report provides detailed analyses of Scope 1, 2 and Scope 3 emissions, transition and physical risks and climate scenario analysis based on the IEA’s Sustainable Development Scenario. According to ISS ESG, the new update addresses market demand for a more unified approach to scenario alignment, adding the latest developments in best practices for measuring portfolio alignment, including the recommendations of the Glasgow Financial Alliance for Net Zero (GFANZ).
According to ISS ESG, the Scenario Alignment section of their Climate Impact Report can now be customized by users for a selection of models, such as those provided by the IEA, NGFS, and the United Nations Environment Programme (UNEP) One Earth Climate Model, with users able to select either a standard or advanced package, incorporating either two or five possible models respectively, and up to 22 possible scenarios.
ISS ESG added that the report will exhibit a combination of outputs and charts that are specific to the investor’s selected model, as well as visuals that allow comparisons of key metrics across all other models that the user is entitled to.
The solution enables users to assess the performance of their portfolios for both medium- and long-term horizons, 2030 and 2050 respectively, and provides information including cross-point year and Implied Temperature Rise, as well as allowing deep dives into sectoral analysis and top contributing issuers to help investors assess climate risk within their portfolio.
Till Jung, Head of ESG at ISS STOXX, said:
“As a leading provider of climate research, data, and analytics, and a trusted partner to the global institutional investor community, ISS ESG is pleased to announce the launch of its customizable Climate Impact Report, the latest new offering in its comprehensive suite of climate solutions, with further innovations planned in 2025.”