ISS ESG | REGULATORY SOLUTIONS
EU TAXONOMY ALIGNMENT SOLUTION
Quantify the share of your taxonomy-aligned investments.
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 and 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 capital expenditure and 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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PORTFOLIO REPORTING – KEY FEATURES
A single report at the click of a button, designed to support
EU Taxonomy reporting obligations alongside additional use cases
ANALYSIS PER OBJECTIVE AND ACTIVITY TYPE
View overall taxonomy alignment, as well as specific views for climate change mitigation and climate change adaptation, with more to come as and when the remaining objectives have their criteria fully defined.
ADDITIONAL VALUE ADDED BENEFIT
Top 10 issuers by alignment and top 10 eligible activity representation within the portfolio.
INTUITIVE DATA VISUALISATION
Easily interpretable charts that can be used for website, pre-contractual and periodic disclosures such as key investor information documents and prospectuses (KIID).
RAW VALUES FOR REGULATORY COMPLIANCE
Data has also been included in tabular format, to allow the relevant numbers to be easily visible and is anticipated to be available in a downloadable format before end of 2021. This is particularly important when the report is being utilized to meet regulatory obligations.
5-STEPS ASSESSMENT PROCESS
Assess the EU Taxonomy alignment of company activities
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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 ELIGIBLE TAXONOMY ACTIVITIES
ISS ESG’s EU Taxonomy Alignment Solution assists in the analysis of your investments against eligible taxonomy activities, which substantially contribute to one of the six primary taxonomy objectives. ISS ESG then checks that eligible 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
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
Analysis of 102 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
A NFRD indicator flag is also included in order to assist clients with their disclosure obligations.
Rely on our comprehensive & dedicated taxonomy solution.
Eligibility coverage of
60,000 issuers
Overall coverage of
8,000 issuers
Screening based on approx.
1,000 factors
As of March 2022
BENEFIT FROM SPECIFIC TAXONOMY DATA TO REPORT ALIGNMENT
- Customize your reporting and include ‘likely aligned’ capital expenditure and revenues on specific activities and/or assessment steps
- 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
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.
