Institutional Shareholder Services Inc. - Carbon Risk Rating

Data category

  • Environmental data
  • Ratings

What data do you provide?

ISS ESG’s Carbon Risk Rating evaluates to what extent a company copes with future challenges

related to climate change and seizes opportunities arising from a transition to a low-carbon economy. The rating assesses issuers’ business activities relating to the fossil fuels coal, oil and natural gas, their carbon footprint, and the management of their industry-specific carbon risks, through the use of over 100 cross-industry and industry-specific indicators.

The rating is derived from two key components:

  • Carbon Risk Classification: a classification of the respective industry's climate change-related risks on a scale from one (very high risk) to four (low risk)
  • Carbon Performance Score: based on a selection of climate change-specific indicators and demonstrates how the company tackles climate change along the value chain. The score is based on the assessment 100 different standard and sector-specific indicators. Standard topics include climate change strategy, energy management, environmental impacts of the product portfolio, eco efficiency, etc.

Issuers are scored on a scale from 0 to 100 representing how a company deals with industry-specific climate risks. The scale can be translated into four broader performance categories: Climate Laggard, Medium Performer, Outperformer, and Leader. These results allow the investor to see in a forward-looking way which companies are best equipped to reduce their direct and indirect carbon emissions effectively. 

ISS ESG’s coverage comprises over 9,600 corporate issuers, including some 6,500 listed companies and 3,100 assigned corporate issuers.

ISS ESG also offers a Country Carbon Risk Rating evaluating the effectiveness of a country’s government in implementing policies aimed at reducing GHG emissions by state, corporate and private actors, and in adapting to a changed climate by reducing its vulnerability to climate risks. Coverage includes more than 120 countries.

Where and how do you source your data?

Data underlying the Carbon Risk Rating is collected from a range of sources, including:

  • Public information, including annual reports; and sustainable development reports; United Nations Global Compact Participant Communication on Progress; Principles for Responsible Investment Signatory Reporting, etc.
  • Subscription databases, including data from the Factiva and CDP
  • Company correspondence, additional information provided directly by the issuers during the rating process

Who are the data users?

Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms. 

What is the cost for your data offering?

Pricing is based on the method by which data is delivered. ISS ESG can provide data via its proprietary platform, DataDesk, or via data feed. Pricing for this solution is available upon request. 

Tweet

@issesg’s Carbon Risk Rating enables investors to evaluate to what extent a company copes with climate-related risks and seizes opportunities arising from the transition to a low-carbon economy. The rating is also available for countries. https://bit.ly/2XjSinZ 

  

#ClimateAction  

Contacts

marija.kramer@iss-esg.com

Corporate Statements

A custom-built approach to ESG

ISS ESG puts a premium on its clients’ ability to customise the ESG data and analytics they can access, its CEO Marija Kramer tells Environmental Finance.

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