ISS ESG, the sustainable investment arm of ISS STOXX, today launched a customizable version of its Climate Impact Report to help subscribing investors elevate and communicate their own climate-related target setting, risk management, reporting, and engagement activities.
The customizable Climate Impact Report leverages ISS ESG’s Scenario Alignment offering, which has been newly enhanced to reflect the latest developments in best practices for measuring portfolio alignment. These include the recommendations of the Glasgow Financial Alliance for Net Zero and address market demand for a more unified approach to Scenario Alignment.
Providers of models include the International Energy Agency, the Network for Greening the Financial System, and the United Nations Environment Programme (UNEP) One Earth Climate Model, developed in partnership with the University of Sydney. A wide range of possible futures in terms of policy and technological developments are therefore assessed through those different models, with projected temperature rises ranging from 1.5°C to over 3°C.
In light of the complexity of each model and the plurality of scenarios given as outputs, ISS ESG’s new offering enables subscribers to customize the Scenario Alignment section of their Climate Impact Report and base their analysis on a single model that they select. Subscribers can select either a standard or advanced package, incorporating either two or five possible models respectively, and up to 22 possible scenarios. The model selection is delivered via the portfolio analysis area of ISS ESG’s proprietary DataDesk platform. 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.
Subscribing investors can assess the performance of their portfolios for both medium- and long-term horizons, 2030 and 2050 respectively, and the new report provides both cross-point year and Implied Temperature Rise. It allows for deep dives into sectoral analysis and top contributing issuers to help investor clients assess climate risk within their portfolio. ISS ESG’s Scenario Analysis is a differentiated offering in the market in terms of methodological accuracy, transparency, and data comprehensiveness. It is also a flexible solution that can be used to address most investors’ use cases concerning climate risk mitigation and impact investing.
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.”