ISS Governance QuickScore 2.0 is a scoring and screening solution designed to help institutional investors identify governance risk within portfolio companies. QuickScore 2.0 provides investors with the tools and insight they need to assess governance attributes categorized under four pillars: Board Structure, Shareholder Rights, Compensation/Remuneration, and Audit. As these governance factors play a heightened role in investment decision-making, investors are increasingly using data and analytics to support their analysis. The need for data-driven tools to complement qualitative research has emerged as an important trend.
QuickScore 2.0 provides expanded global coverage and includes enhancements to the original factor methodology. The addition of new factors and improved scoring of questions and pillars enables investors to better differentiate companies and allows for better alignment with company performance, quantitative modeling results, and ISS voting policy.
ISS Governance QuickScore 2.0 global coverage comprises 4,100 companies in 25 markets, including companies in the U.S. Russell 3000 and Canadian S&P/TSX Composite indices, as well as companies in the U.K., Europe, Japan and Asia Pacific that are in the MSCI-EAFE index. QuickScore 2.0 coverage includes expansions in the U.K. and Australian markets to encompass UK Euro Stoxx and Australia ASX 200 constituents.
Drawing on market views of what constitutes best practice, ISS has assessed each covered company’s governance risk using between 50 to 80 critical corporate governance factors across the four category pillars of Board Structure, Compensation/Remuneration, Shareholder Rights, and Audit. A regional approach in evaluating and scoring companies allows for company comparisons in markets where the corporate governance practices are the most similar.
QuickScore 2.0 delivers robust and timely insight, with event-driven data updates that capture changes to a company’s governance structure that are identified through public disclosures and integrated into a company’s QuickScore on an ongoing basis.
Companies within the ISS Governance QuickScore 2.0 coverage universe can review, verify and provide feedback on the data used to determine their scores via a complementary Data Verification tool accessed through ISS Corporate Services’ Governance Analytics platform. Submissions of corrected or updated data factors can be made online through the platform.
Data verification is not available during the period between the filing of a company’s proxy statement and the publication of ISS’ proxy analysis for the company’s annual meeting.