ISS STOXX - Engagement & Bespoke Solutions
Data category
- Environmental data
- Governance data
- Research data
- Social data
- Verification/Certification/External opinion
The data offers solutions for:
- Carbon footprinting
- Environmental impact analysis and insight
- Geospatial/location data
- Investment decisions and portfolio insight
- Nature-based information
- Nature-based information: Biodiversity
- Norms-based screening
- Physical risk
- Reporting: EU Regulations
- Reporting: Impact
- Reporting: Other Regulations
- Reporting: SFDR
- Reporting: TNFD
- Reporting: UN SDGs
- Social impact analysis and insight
Who are the data users?
- 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 provides a comprehensive range of bespoke solutions and engagement support designed to meet the unique needs of each client. This includes bespoke research for alternative asset classes, Collaborative Engagement Services enabling investors to participate in a joint outreach and dialogue with companies, and proxy voting and engagement support solutions that enable shareholders to actively participate in corporate decision-making processes.
Collaborative Engagement Services help investors take part in a joint outreach and dialogue with companies on material sustainability-related themes, and exercise active ownership in line with established standards such as Stewardship Codes, PRI, SRD II, SFDR and the SDGs. We help to facilitate the engagement dialogue on behalf of the participating clients to promote positive change such as enhanced disclosure, a push for improved sustainability performance or mitigation of sustainability risks.
The services include Norm-Based Engagement (covering controversies with adverse environmental and social adverse impacts) and Thematic Engagement (covering biodiversity, water, net zero, and gender equality). Participating clients may opt-in/opt-out of specific Norm-Based Engagements, and select theme(s) depending on their focus areas. The services leverage proprietary data and research to identify engagement target companies, set engagement objectives, and track progress, as well as the expertise of engagement specialists and topic experts. On behalf of the participating clients, we draft engagement letters, manage correspondence with companies, organize and moderate engagement meetings – which participating clients may join – and analyses company responses. For non-responding companies, we implement a robust reminder and escalation process. Participating clients are provided with outcomes-based reporting, which includes specific engagement metrics and our commentary on the dialogues. For the Norm-Based Engagement service, subscribing clients have access to a dedicated online platform to manage engagements, monitor dialogue, and perform reporting duties. For Thematic Engagement, the information is provided through quarterly and annual reports.
In addition to our tailored offerings, ISS STOXX provides comprehensive engagement support to help shareholders navigate the complexities of the investment landscape. The Engagement Suite allows users to capture and track engagement activities, including discussions and outcomes, client-defined topic tags with “traffic light” health indicators, and issuer contacts, for companies within our universe of issuers.
Our bespoke solutions are crafted with a deep understanding of the complexities of the financial markets and the diverse needs of our clients. The dedicated Alternative Research (AR) team implements a tailored approach to data collection/mapping, leveraging 30+ years of methodology diligence and quality control, and relying on a comprehensive set of proprietary techniques and sources. With significant experience in alternative investments, responsible investments, sustainable assets, and regulatory compliance, the team is highly experienced in designing concepts/approaches for sustainability assessments of dynamic portfolio structures, with multiple sponsors, funds of funds, varied tiers of assets, and more.
ISS STOXX offers a variety of specialty proxy voting guidelines that evaluate sustainability topics from an assortment of investor viewpoints. For example, the Specialty Climate Voting Policy allows investors to vote at meetings based on principles consistent with good stewardship that incorporate specific climate change relevant information, flags, and voting recommendations, which investors can use to apply their views on a portfolio company’s climate-related performance and disclosure.
Where and how do you source your data?
Norm Based Engagement
Companies considered for inclusion to the Norm-Based Engagement process are sourced based on factors surrounding ISS STOXX's Norm-Based Research. ISS STOXX carries out extensive dialogue with companies and expert stakeholders – governmental or inter-governmental bodies, non-governmental organizations, academic organisations – to validate facts relevant to the incident or controversy and to the company’s response to it. Only companies that fail to respond to an incident in line with established norms and standards are subject to engagement.
Thematic Engagement
ISS STOXX identifies a list of target companies that show a certain underperformance based on a specific definition per theme. A select number of large market capitalization companies based on a list of specific indicators are targeted, with a geographical distribution meeting the needs of global investors.
Data comes from the following proprietary ISS STOXX solutions:
- Carbon Risk Rating
- Net Zero Alignment Data
- Water Risk Rating
- ESG Corporate Rating
- SDG Impact Rating
- SDG Solutions Assessment
- Governance QualityScore
- Modern Slavery Scorecard
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?
Collaborative ESG Engagement Services
- Cost-effective approach to active ownership. Active participation in Norm-Based Engagement service provides a systematic and cost-efficient approach to active ownership across markets in response to controversies related to responsible business conduct.
- The cumulative weights of shareholders’ voices. The collaborative setting of the engagement outreach is designed to ensure the highest level of effectiveness. This collaborative engagement is often more effective in wielding influence and raising awareness with companies on the identified issues.
- Benefits from a foundation of high-quality, dynamic Norm-Based Research. The in-depth Norm-Based Research on which the service is based ensures the selection of relevant companies and engagement objectives.
- Insights from industry specialists. We have a dedicated team of researchers with specialized backgrounds in global norms topics. The engagement team provides insight and dedicated experience on the environmental and social issues identified. The team’s broad language skills and understanding of sustainability issues allow it to identify, analyse, and track controversies.
Bespoke Research & Advisory
- Flexibility: Through our Bespoke Research & Advisory Solutions team, we have dedicated resources to undertake custom projects for our clients.
- Expertise: Our Bespoke Research & Advisory Solutions team has years of experience in a wide range of asset classes.
Climate Voting Policy
- Leverages leading in-house data solutions. Our extensive, unique climate data and proprietary research, along with issue expertise, provides a model for assessment of a company’s climate-related performance and disclosures that, in turn, are used to inform climate-based proxy voting recommendations for clients.
- Holistic view of climate impact. The Climate Voting Policy includes views on a company’s GHG emissions, climate strategy, and impact of its activities on climate, putting these into context within its sector and incident-based climate risk exposure. The Climate Voting Policy can be part of a climate-concerned investor’s toolbox and can complement shareholder engagement.
- Robust and transparent scorecard approach. Policy framework relies on a scorecard approach, reflecting varied climate-related risk factors to produce insightful research and subsequent vote recommendations. Scorecard results build year-on-year, enabling evaluation of company performance over time.
- International expertise and local support. Exceptional client service is a hallmark of our business model, with local research, consultants, and operational support represented in a dedicated service team. The client support team builds the bridge for clients to the highly experienced team of analysts to ensure clients are supported by knowledgeable professionals to support business objectives.
- An integrated environmental, social, and governance solution. The service combination of the various governance and responsible investment-related services allows investors to address sustainability challenges.
Most recent significant update:
Q2 2023
ISS STOXX Biodiversity Index Suite launch
The new the ISS STOXX Biodiversity Index Suite index suite helps interested clients align portfolios with their biodiversity impact reduction goals.
Planned future enhancements:
Areas of focus for 2025 include:
- Integration with our voting solutions: delivering more integration between our Governance and Sustainability solutions and workflows, including:
- Custom Voting Research with Net Zero and Biodiversity Options
- Expansion of our Climate Voting Policy universe
- A new Engagement Disclosure branded website solution
What trends are you seeing in terms of customer demand?
Investors increasingly want to make use of the entire toolbox to either manage risk or achieve impact around their investments. This can result in the need to engage with companies that have been identified as laggards in certain ESG-linked themes, to vote in line with sustainable investing policies at an AGM, to choose alternative investment strategies and benchmark catering to certain ESG-linked goals and to automatically report on all of the above. ISS STOXX is uniquely positioned to serve as a one-stop shop for the toolbox content and partner to turn such needs into action.
Contacts
Till Jung
Global Head of Sustainability, ISS STOXX
[email protected]
+49.89.46.2248162
