ISS ESG

EU TAXONOMY ALIGNMENT SOLUTION

Quantify the share of your taxonomy-aligned investments.

BROWSE ISS ESG THOUGHT LEADERSHIP

Are you prepared?

The European Union’s Taxonomy brings new mandatory reporting requirements that represent a challenge for financial markets by requiring significant action from participants.

Comply with incoming disclosure obligations for your products & portfolios sold in the EU

ISS ESG’s EU Taxonomy Alignment Solution enables financial market participants to identify the level of alignment of their investments and financial products with defined taxonomy activities. The solution quantifies respective revenues in order to comply with the upcoming disclosure obligations.

EUROPEAN SUSTAINABLE FINANCE SURVEY

ISS ESG and climate-focused sustainability consultancy adelphi were commissioned by the German Federal Ministry for the Environment, in the context of Germany’s Presidency of the EU Council in 2020, to assess the current state of alignment of listed European companies as well as banks’ lending activities with the EU Taxonomy for sustainable finance.

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5-STEPS ASSESSMENT PROCESS

Assess the EU Taxonomy alignment of company revenues

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IDENTIFY RELEVANT ACTIVITIES

Relevant activities are activities which make a substantial contribution to one of the objectives for which the taxonomy has been defined .

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QUANTIFY RESPECTIVE REVENUES

Reported and estimated revenues are attached to relevant activities.

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CHECK IF SUBSTANTIAL CONTRIBUTION CRITERIA ARE MET

For each relevant activity, the taxonomy defines specific substantial contribution criteria which need to be met in order to be considered environmentally sustainable.

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CHECK IF DO NO SIGNIFICANT HARM CRITERIA ARE MET

Compliance with the respective DNSH criteria is assessed for each company, including if it has been involved in environmental controversies.

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CHECK IF SOCIAL SAFEGUARDS ARE MET

It must be verified that the company has not been subject to (allegations of) failing to meet minimum social safeguards in their operations.

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Understand the Importance of the New EU Taxonomy Regulation

In this new episode of the ISS ESG Foreword podcast series, Taxonomy expert Lydia Sandner, Head of Regulatory Affairs at ISS ESG, and Thomas Harding, EU Taxonomy Alignment Solution product lead, shed light on the new regulatory requirements and explain how they can affect you and your business. Listen in and learn more about ISS ESG’s dedicated solution and our approach taken to assist with compliance.

IDENTIFY YOUR RELEVANT TAXONOMY ACTIVITIES

ISS ESG’s EU Taxonomy Alignment Solution assists in the analysis of your investments against relevant taxonomy activities, which substantially contribute to one of the six primary taxonomy objectives. ISS ESG then checks that relevant activities do not harm any of the other taxonomy objectives.

The solution focuses on the climate-related objectives initially, included in the first phase of the staggered regulation.

  • Climate change mitigation
  • Climate change adaptation
  • Sustainable use and protection of water and marine resources
  • Transition to a circular economy, waste prevention and recycling
  • Pollution prevention and control
  • Protection of healthy ecosystems

Analysis of 74 taxonomy-aligned activities including:

  • Improved forest management
  • Livestock production
  • Manufacture of renewable energy technologies
  • Manufacture of cement
  • Electricity generation from wind power
  • Manufacture of aluminium
  • Anaerobic digestion of sewage sludge
  • Composting of bio-waste
  • Freight rail transport

Rely on our comprehensive & dedicated taxonomy solution.

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Coverage of

6000+ issuers

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Screening based on

400+ factors

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BENEFIT FROM SPECIFIC TAXONOMY DATA TO REPORT ALIGNMENT

  • Customize your reporting and include ‘likely aligned’ revenues on specific activities and/or assessment steps and more
  • Measure and report on the taxonomy compliance of investment funds
  • Report on overall taxonomy alignment at portfolio level
  • Engage with investee companies
  • Select holdings and design investment products
  • Express investment preferences
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Leveraging over 25 years of ESG Research & Rating expertise

ISS ESG’s proprietary research and rating methodology has been consistently updated and developed across more than 25 years, aiming to deliver high-quality, material and forward looking ESG data on a company’s sustainability performances.

This methodology is used to support our EU Taxonomy solution, sharing a similar assessment approach for an economic activity’s contribution to sustainable development. Both consider the impacts associated with an activity holistically along the respective value chain and are highly sector-specific.

ACCESS DETAILED AND UP-TO-DATE RESEARCH DATA VIA ISS DATADESK

Trust ISS ESG Taxonomy Solution to help you meet the new EU reporting requirements.

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