Governance QualityScore global coverage comprises of approximately 5,600+ companies in 30 markets, aligning with local market indices, including constituents of the U.S. Russell 3000, Canadian S&P/TSX Composite, STOXX600, NZX15, ASX 200, JPX-Nikkei 400, and the main European local market indices including the UK FTSE All-Share (ex-investment trusts.)
Governance QualityScore also includes widely held companies in ISS’ coverage universe for Brazil, China, Hong Kong, and India. The term “widely held” refers to companies that ISS designates as such based on their membership in a major index and/or the number of ISS clients holding the securities.
ISS conducts an annual review to determine opportunities to expand our global coverage to meet the needs of investors globally.
Governance QualityScore uses a numeric, decile-based score that indicates a company’s governance risk relative to their index or region. A score in the 1st decile (QS:1) indicates relatively higher quality governance practices and relatively lower governance risk, and, conversely, a score in the 10th decile (QS:10) indicates relatively higher governance risk. Companies receive an overall QualityScore and a score for each of four categories: Board Structure, Compensation/ Remuneration, Shareholder Rights, and Audit & Risk Oversight.
The Governance QualityScore methodology focuses on the qualitative aspects of governance, including global governance standards and alignment with ISS voting policy in each region.
ISS’ annual methodology review ensures that the methodology remains in step with the ISS benchmark policies as they adapt to reflect developments in regulatory and market practice.
Use ISS’ online tools for insight into a company’s corporate governance structures, quick drill-downs into particular areas of concern, and deep dives into underlying governance data.
Connect your internal platform to the Governance QualityScore API to directly access Governance QualityScore Profiles and drill into the key risks, to easily bring governance insight into investment decisions and proxy voting processes.
Easily ingest the files through your own internal processes and highlight scores within internal workflow platforms.
Governance QualityScore company profiles are available through FactSet’s research manager, while the pillar score and the category scores are accessible in the universal screener and MS Excel add-in.
Access to the search function is temporarily unavailable as ISS begins the QualityScore launch process. Updated scores will be available beginning November 21st.