ISS ESG | REGULATORY SOLUTIONS
SFDR PRINCIPAL ADVERSE IMPACT SOLUTION
Measure your investments against regulatory defined Principal Adverse Impact indicators and metrics & report the results.
WATCH THE VIDEO
The European Union’s Sustainable Finance Disclosure Regulation (SFDR) introduces mandatory and additional reporting requirements regarding Principal Adverse Impact indicators on an entity and product level. The regulation aims to improve the level of disclosure regarding responsible investing in the EU, redirecting flows of capital to a more sustainable economy.
Learn how ISS ESG can help you to comply with the new EU Sustainable Finance Disclosure Regulation.
Assess and report on the Principal Adverse Impacts of your products and portfolios
ISS ESG’s SFDR Principal Adverse Impact Solution enables Financial Market Participants to measure the performance of their investments against the regulatory defined Principal Adverse Impact indicators and metrics in order to comply with the new disclosure obligations.
- SFDR Level 2 compliance and Principal Adverse Impact reporting obligations
- Security selection for product development and portfolio construction
- Insight into vital ESG metrics which support informed voting practices and engagement activities
PORTFOLIO REPORTING – KEY FEATURES
Two reports available at the click of a button, designed to support Level 1 and Level 2 SFDR compliance obligations as well as reporting against the specific Principal Adverse Impact indicators and metrics at both an entity and product level.
Report at Both an Entity and Portfolio Level and Provide an Overview of Individual Metrics and Indicators
The SFDR Annual Average report and SFDR report enable Financial Market Participants to address the SFDR entity level reporting requirement that came into effect in January 2023. The SFDR Annual Average report performs the average of the reference year’s four quarters, taking into consideration the portfolio’s constituents, PAI impact and EVIC as captured on the 4 quarter-ends. The SFDR report enables investors to report against the Principle Adverse Impact indicators at a specific point in time, especially in the context of SFDR product level reporting requirement applicable as of January 2023, but also for SFDR entity level reporting to capture fiscal year end EVIC and PAI impact.
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). ISS ESG also includes coverage per specific Principle Adverse Impact (PAI) metric.
Transparency on Sustainability Risks and Consideration of Principal Adverse Impacts
The ESG Rating and Carbon Risk Rating Portfolio-Benchmark comparison charts can be used to measure and report on sustainability risks. The Portfolio-Benchmark comparison of the overall scores from our Norm-Based Research and Sustainability Development Goals (SDG) Solution can be used to support the construction of Principal Adverse Impacts policies and statements, beyond the specific indicators and metrics specified within the Level 2 Regulatory Technical Standards.
Raw Values for Regulatory Compliance
Data has also been included in tabular format to allow the relevant numbers to be easily visible. This is particularly important when aggregating data and the subsequent reporting to meet the regulatory obligations.
AVAILABLE REPORTS:
Coverage of all mandatory PAI indicators* for corporate and sovereign / supranational assets, including:
- GHG emissions
- Carbon footprint
- Biodiversity
- Emissions to water
- Hazardous waste ratio
- Violations of UN Global Compact principles
- Board gender diversity
- Exposure to controversial weapons
*ISS ESG has mapped the mandatory and the additional indicators to its ESG solutions, leveraging justifiable proxies in the absence of reported and disclosed data, and has already began to commence further data collection.
A NFRD indicator flag is also included in order to assist clients with their disclosure obligations.
GLOBAL COVERAGE
Up To 7,400 Issuers
for Corporates PAIs
Up To 26,000 Issuers
Issuers for Corporates Controversies linked PAIs
Up to 190 countries
Sovereign & Supranational Assets
ENHANCED CLIMATE & SOCIAL DATA
Approx. 37,500 issuers
GHG Data
Approx. 190K directorship records
Governance Data
Data as of January 2023. All figures are approximate.
CLICK THE IMAGE TO VIEW THE INFOGRAPHIC
How Transparent Are Companies About
Their Gender Pay Gap?
ISS ESG’s SFDR PAI Solution includes unadjusted pay gap data. ISS ESG provides data on all mandatory corporate PAI indicators, enabling institutional investors to achieve their regulatory reporting requirements
LISTEN TO THE PODCAST
Unpacking the EU’s Sustainable Finance Disclosure Regulation
In this ISS ESG Foreword podcast episode, ESG experts Ronja Wöstheinrich explores reporting challenges for institutional investors associated with SFDR compliance and previews ISS ESG’s dedicated SFDR Principal Adverse Impact Solution.
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 company’s sustainability performances.
This methodology is used to support our SFDR PAI solution, where we leverage existing and established underlying products and solutions to map to the regulatory criteria, and where new expertise has been applied in the mapping efforts and translation stage. These include regulatory knowledge, product expertise and highly sector-specific analysis.
ACCESS DETAILED AND UP-TO-DATE RESEARCH DATA VIA ISS DATADESK
Rely on ISS ESG SFDR Principal Adverse Impact Solution to get ready for the new EU disclosure requirements.
