The European Union’s Sustainable Finance Disclosure Regulation introduces new mandatory and additional reporting requirements against a set of prescribed Principal Adverse Impact indicators at the entity and product level.
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
A single report at the click of a button, designed to support Level 1 SFDR compliance obligations as well as reporting against the specific Principal Adverse Impact indicators and metrics
ESG RATING / CARBON RISK RATING
The charts on the top half of page 1, SFDR Portfolio Report can be used to address the broad Sustainability Risks that an investment product / portfolio might be subject to
NORMS BASED RESEARCH / SDG IMPACT
The charts on the bottom half of page 1, SFDR Portfolio Report can be used to address the broad Principal Adverse Impacts that could be relevant to an investment product / portfolio
INTUITIVE DATA VISUALISATION
Easily interpretable charts and tables that can be used for website, pre-contractual and periodic disclosures (KIID documents and prospectuses). We also include coverage per specific PAI metric.
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 the year. This is particularly important when aggregating data and the subsequently reporting to meet the regulatory obligations
AVAILABLE REPORT: SFDR Portfolio Report
Coverage of mandatory PAI indicators* for corporate and sovereign / supranational assets, including:
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.
*as of 04/2021: all indicators except ‘unadjusted gender pay gap‘
Up to 7K companies
Up to 190 countries
Sovereign & Supranational Assets
ENHANCED CLIMATE & SOCIAL DATA
Approx. 25K issuers
Approx. 170K directorship records
LISTEN TO THE PODCAST
Unpacking the EU’s Sustainable Finance Disclosure Regulation
In this ISS ESG Foreword podcast episode, ESG experts Ronja Wöstheinrich and Thomas Harding explore reporting challenges for institutional investors associated with SFDR compliance and preview 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
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