ISS ESG | REGULATORY SOLUTIONS
REGULATORY SUSTAINABLE INVESTMENT SOLUTION
Define and quantify your sustainable investments to fulfil regulatory reporting requirements and guidelines globally.
Do you offer or are you thinking of launching sustainable investment funds, products and portfolios to the market?
ISS ESG’s Regulatory Sustainable Investment Solution supports global financial market participants with defining their interpretation of sustainable investments, and quantifying the portion of funds, products and portfolios that meet those criteria. The solution facilitates the customization and optimization of sustainable investment strategy, whilst satisfying regulatory reporting requirements globally, including SFDR Art 8 and Art 9.
What role does the investment sector play in supporting the transition to a green economy?
Although assets in sustainable investment funds have doubled over the past four years, an estimated $20 trillion in new investments will be required by 2050 to achieve worldwide net zero goals.
Source: The International Monetary Fund (IMF), Global Financial Stability Report, October 2021
Distinct Methodology for Defining and Quantifying Sustainable Investments
The methodology is based on four common pillars within sustainable finance regulations globally that our team of regulatory experts have identified
Financially Material
ESG Risks
Contribution to Environmental
or Social Objectives
Adverse Sustainability Impacts
& Do No Significant Harm
Good Governance
POWERED BY A BROAD RANGE OF HIGH-QUALITY ISS ESG SOLUTIONS, INCLUDING:
CUSTOMIZE YOUR APPROACH FOR DEFINING AND QUANTIFYING SUSTAINABLE INVESTMENTS
- Carry out a company-level analysis or granular activity and revenue-based assessment
- Screen the sectors that are most relevant to your fund
- Assess companies’ involvement in controversies, policies, or a combination of both
- Tailor your assessment based on the sustainable finance themes that are most relevant to your sustainable investment strategy disclosure requirements
COVERAGE
Baseline coverage of
12,500 issuers
for ESG Corporate Rating data
Up to 26,000 issuers
for Norm-Based Research data
Up to 37,500 issuers
for climate-related data
Data as of January 2023.
ISS ESG’s Responsible Sustainable Investment Solution is applicable for sustainability-related disclosure frameworks within the European Union as well as principles-based disclosure regimes adopted in jurisdictions outside of the European Union.
INVESTMENTS WITHIN THE
EUROPEAN UNION
- Facilitate the completions of SFDR obligations related to Article 8 & 9 disclosures
- Assess and quantify the sustainability of your funds and investment products that do not fall under the EU Taxonomy scope
- Inform your voting and engagement practices
INVESTMENTS WITHIN THE U.S., CANADA, HONG KONG, TAIWAN, INDIA, AND THE PHILIPPINES
- Define and quantify the percentage of sustainable investments within your ESG funds and investment products as directed by regulations, proposals and sustainable investment guidelines
- Provide disclosure and transparency on your sustainable investment strategies, criteria and implementation
- Inform your voting and engagement practices
The Depth & Breadth of Regulatory Initiatives
Across Regions in 2021
The report identifies six key topic areas in sustainable financial regulation – taxonomies; product standards, disclosures and labelling; management and disclosure of climate risks; management and disclosure of ESG risks; ESG in stewardship; and green bond guidelines.
The thought leadership paper provides a global comparative analysis, leveraging the proprietary ISS ESG Regulation Depth and Breadth Index, to assess the number and breadth of initiatives implemented to date, as well as providing a qualitative summary of initiatives, by region and country.
READ THE REPORT HERE ›
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’s Regulatory Sustainable Investment Solution to help you meet global sustainable finance regulatory requirements.
