Customizable Climate Impact Reporting Solution for Investors Introduced by ISS ESG, Allowing Tailored Assessments of Portfolios' Contribution to Climate Change
In a significant move towards enhancing climate-related financial disclosures, ISS ESG, a sustainable investment-focused arm of ISS STOXX, has introduced a customizable version of its Climate Impact Report. The new offering, announced by Till Jung, Head of ESG at ISS STOXX, is a comprehensive tool designed to provide investors with a more comprehensive and flexible approach to managing and reporting on their climate-related activities.
The customizable Climate Impact Report is one of the latest additions to ISS ESG's suite of climate solutions. It offers detailed analyses of Scope 1, 2, and 3 emissions, transition and physical risks, and climate scenario analysis based on the International Energy Agency's (IEA) Sustainable Development Scenario.
The report's key feature is its integration with scenario data from IEA, Network for Greening the Financial System (NGFS), and United Nations Environment Programme (UNEP) models. This integration allows for a robust, forward-looking analysis framework, facilitating scenario alignment and net zero transition assessment for investment portfolios.
For scenario alignment, the report compares the portfolio's energy and emissions profile against net zero scenarios by 2050, including those provided by IEA and NGFS. It also incorporates climate scenario analysis consistent with frameworks embraced by the Glasgow Financial Alliance for Net Zero (GFANZ), enabling investors to track how their investments align with the goals of net zero by 2050.
The report supports alignment to climate-related disclosure frameworks such as TCFD, ISSB, CSRD, and SFDR, which increasingly mandate scenario analysis and alignment for transparency and risk management. It provides information such as cross-point year and Implied Temperature Rise, aiming to help investors assess and communicate their climate-related target setting, risk management, reporting, and engagement activities.
The customizable Climate Impact Report is offered by a leading provider of climate research, data, and analytics, and a trusted partner to the global institutional investor community. Users can choose between a standard or advanced package, incorporating either two or five possible models respectively. They can also conduct deep dives into sectoral analysis and identify top contributing issuers to help assess climate risk within their portfolio.
ISS ESG's customizable Climate Impact Report leverages scenario data from IEA, NGFS, and UNEP models to provide a robust, forward-looking analysis framework for investors. It aligns portfolio holdings with the GFANZ commitments by evaluating transition risks and carbon footprints against scientifically grounded net zero transition pathways, offering data-driven insights to help meet regulatory and investor expectations on climate-related financial disclosures.
The updated Climate Impact Report addresses market demand for a more unified approach to scenario alignment. ISS ESG did not provide details about the cost or availability of the customizable Climate Impact Report in the announcement. The company plans to introduce further innovations in 2025.
- Investors can now utilize ISS ESG's customizable Climate Impact Report, a comprehensive tool encompassing sustainable investment, finance, and technology, which offers detailed analyses to aid in managing and reporting on climate-related activities, aligning with net zero scenarios by 2050.
- To meet the growing market demand for a unified approach to scenario alignment and regulatory expectations on climate-related financial disclosures, ISS ESG has integrated scenario data from IEA, NGFS, and UNEP models into their customizable Climate Impact Report, providing investors with data-driven insights for sustainable investment decisions.
