ISS STOXX - Engagement & Bespoke Solutions
Data category
- Environmental data
- Governance data
- Research data
- Social data
- Verification/Certification/External opinion
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.
Contacts
Till Jung
Global Head of Sustainability, ISS STOXX
[email protected]
+49.89.46.2248162