ISS STOXX - Screening & Controversies
Data category
- Environmental data
- Governance data
- Indices/Exchange data
- Research data
- Social data
The data offers solutions for:
- Environmental impact analysis and insight
- Investment decisions and portfolio insight
- Nature-based information
- Nature-based information: Biodiversity
- Nature-based information: Land use
- Nature-based information: Oceans
- Nature-based information: Water
- Norms-based screening
- Reporting: CSRD
- Reporting: ISSB standards
- Reporting: Impact
- Reporting: SEC climate
- Reporting: TCFD
- Reporting: TNFD
- Reporting: UN SDGs
- Social impact analysis and insight
Who are the data users?
- Corporates
- Financial institutions
- Government
- Investors
- Trustees
- Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms.
Brief description of the data offering
ISS STOXX's Screening & Controversies solutions encompass dozens of topics, allowing investors to screen, monitor, and analyze responsible investment performance. Solutions include:
- Norm-Based Research, a pioneering solution that identifies and evaluates allegations that companies are failing to abide by global norms on human rights, labor standards, environmental protection, and anti-corruption set out in the UN Global Compact and OECD Guidelines.
- ESG Newsroom assists in identifying reputational risks by monitoring ESG news categorized across more than 100 ESG themes related to human rights, labor rights, and environmental and business malpractice.
- Controversial Weapons Research, a well-established analysis methodology identifying involvement in banned or controversial weapons, including cluster munitions, anti-personnel mines, depleted uranium, nuclear weapons, and biological and chemical weapons.
- Energy & Extractive Screening provides detailed analyses on companies' involvement in the extraction of fossil fuels, and the generation of power from fossil fuels, nuclear, and renewable sources.
- Sector-Based Screening provides an assessment of companies with business involvement in specific controversial products or services: alcohol, animal welfare, gambling, medical ethics, pornography, tobacco, and more.
- Global Sanctions Screening identifies issuers with certain business ties to countries subject to US state-level divestment mandates or designated under national or multi-lateral sanctions regimes.
- Modern Slavery Scorecard enables clients to identify, evaluate, and act on modern slavery-related risks and their impact on investments.
Where and how do you source your data?
Data is primarily sourced from publicly available information, including a company’s own disclosure and reporting, proxy statements, reputable news, governmental and international institutions, recognised international or local non-governmental organizations, and non-biased subscription databases such as the CDP.
Norm-Based Research
Through the data mining process, ISS STOXX carries out data mining for allegations of corporate involvement in failures to respect international norms and standards through our proprietary ESG Newsroom, which compiles parsed, near-real-time media information from tens of thousands of traditional media, social media, and stakeholder publications globally.
Controversial Weapons Research
ISS STOXX conducts a comprehensive, systematic review of open sources such as company publications, contract award notifications by government authorities, military specialized magazines, and publications by research organizations and non-governmental organizations.
Active company and stakeholder dialogues are also a key component of the research process. ISS STOXX engages in a fact-finding dialogue with companies as soon as research is initiated and offers companies an opportunity to review the analysis and submit relevant complementary documentation. This dialogue continues for as long as ISS ESG maintains its assessment on the company. We also consult with experts and field specialists (commonly representatives of state institutions, inter-governmental organizations, academia, NGOs) to cross-check information and deepen the understanding of benchmark corporate practices.
Modern Slavery Scorecard
The Modern Slavery Scorecard leverages a number of proprietary solutions, including the ESG Corporate Rating and Norm-Based Research. Additionally, the Modern Slavery Scorecard utilizes data from external sources such as the US Department of Labor and FactSet (location data).
What is the cost for your data offering?
Pricing for this solution is available upon request.
What are the key attributes that differentiate the data you offer?
Insights from industry specialists. We employ a dedicated team of researchers with specialised backgrounds in global norms, controversial weapons, and specialised industries offering insight and dedicated experience on the environmental and social issues identified.
Focus on company and stakeholder engagement. We engage in fact-finding dialogue with companies upon initiation of research into a reported allegation. As part of this dialogue, the company is presented with the allegation and offered an opportunity to state its position.
Norm-Based Research
- We pioneered the creation of Norm-Based Research, now the basis of one of the most widely used strategies. Clients have access to current and historical Norm-Based Research, as well as a defendable and structured methodology to support investment research and decision making.
- Dynamic assessments are updated as new information becomes available. We systematically track developments on relevant controversies in the 24-hour news cycle and make updates to assessments as new information becomes available and validated.
ESG Newsroom
- Data Model. The ESG Newsroom's strength lies in its data harvesting model, which leverages the interaction of AI to screen and pre-filter news articles, and analysts as humans-in-the-loop who vet all filtered news.
- Data Analyst validated data is clearly categorised using more than 100 ESG themes related to human rights, labor rights, and environmental and business malpractice.
Controversial Weapons
- Granular flagging and scoring system. Controversial Weapons Research findings are categorised by traffic light signals based on status and level of involvement and verification, and given a numeric score to provide additional granularity based on type of activity and ownership.
- A well-established analysis methodology. Alignment with legal definitions, national requirements, and recognised conventions ensures international relevance and supports compliance at a national level. Our assessment at the weapons program level and throughout the full lifecycle of such programs ensures exhaustiveness.
Energy & Extractives Screening and Sector-Based Screening
- Comprehensive Coverage. We employ an issue-based approach to screening, which focuses on the actions of companies across the globe. This approach allows us to flag potential scrutinized companies that would not otherwise fall into a defined index and allows for fuller coverage. Additionally, we take into account the relevant activities of, and revenue generated by, direct and indirect subsidiaries.
- High-quality data. ISS ESG’s comprehensive screening methodology, supported by strict internal quality management systems, is based on recognised value systems that are continuously adapted to the latest developments and insights in the field of sustainability.
Modern Slavery Solution
- Forward-looking, holistic assessment of vulnerability, performance, disclosure and controversies related to modern slavery.
In-Depth Analysis: 27 distinct data points developed by in-house modern slavery and human rights experts - Multi-Layered Risk Assessment: Based on an issuer’s location, industry, and products
Rigorous Methodology: Aligned with regulatory requirements across jurisdictions
Most recent significant update:
Q2 2024
- Modern Slavery Solution Enhancement and Portfolio Report launch
In June 2024, we launched a comprehensive Modern Slavery Solution, including a risk assessment of 60,000 issuers and a Modern Slavery Portfolio Report.
- Energy & Extractives topic expansion: Heat Generation
In May 2024, we completed the addition of Heat Generation factors to our Energy & Extractives dataset that can help clients address regulatory requirements that emerge in various jurisdictions, such as the recent addition of heat generation metrics to the EU Taxonomy and EBA Pillar 3, Template 3. Similar to our existing Power Generation factors, Heat Generation provides information on companies that burn fossil fuels to create heat for industrial, residential, and commercial purposes. The data provides a more complete picture of a portfolio’s exposure to carbon emissions and assesses how well individual issuers are transitioning away from fossil fuel technologies to renewable energy solutions.
Planned future enhancements:
Planned enhancements for 2025 include:
- Enhancing our Norms-Based Research methodology to include more flexible screening options
- Updating our Energy and Extractives dataset to respond to Paris-aligned Benchmark requirements and ESMA guidelines
- Updating our screening user interface with new enhanced capabilities and advanced filtering options
What trends are you seeing in terms of customer demand?
Screening and Controversies data sees constant demand as it helps investors navigate trending themes linked to global crises. For example, energy and extractives data, as well as weapons data, help in assessing the war in Ukraine and the related energy implications on a portfolio. ISS STOXX offers high-quality, granular screening data, underscored by comprehensive company and stakeholder engagement.
Contacts
Till Jung
Global Head of Sustainability Business, ISS STOXX
[email protected]
+49.89.46.2248162
