Institutional Shareholder Services Inc. - SDG Solutions Assessment

Data category

  • Environmental data
  • Social data
  • Governance data
  • Ratings

What data do you provide?

ISS ESG’s SDG Solutions Assessment weighs the positive or negative impact of a company’s product and service portfolio towards 15 environmental and social objectives closely aligned with the UN SDGs. The assessment contains an aggregate score and objective-level scoring as well as a granular breakdown of the products/services assessed, in addition to the percent of net sales linked to each sustainability objective.

ISS ESG has defined a total of 15 sustainability objectives which are closely aligned with the SDGs. They are used to assess companies’ product and services portfolios in terms of their contribution or obstruction towards sustainable development, qualifying the portfolio’s impact based on a five-level impact scale (from significant contribution down to significant obstruction).

Social objectives include:

  • Alleviating poverty
  • Combating hunger/malnutrition
  • Ensuring health
  • Delivering education
  • Attain gender equality
  • Providing basic services
  • Safeguarding peace

Environmental objectives include:

  • Achieving sustainable agriculture/forestry
  • Conserving water
  • Contributing to sustainable energy use
  • Promoting sustainable buildings
  • Optimising material use
  • Mitigating climate change
  • Preserving marine ecosystems
  • Preserving terrestrial ecosystems

For each individual objective, a qualitative analysis is conducted to determine whether a product or service category makes a significant or limited net contribution towards attaining the objective; whether it has neither an explicitly positive nor an explicitly negative impact; or whether the product or service actually acts as a limited or significant obstruction towards attaining the objective. As a result, the positive and negative effects of different product groups may partly cancel each other out within a given objective.

The individual product or service assessment is done along five categories:

The results are provided in form of Revenue Percentages, Objective Scores and the SDG Solutions Score. Objective Scores are based on the classification of products and services offered and their respective revenue shares. The SDG Solutions Score provides an aggregated assessment, taking into account a company’s most distinct objective impacts. 

Coverage includes over 9,600 corporate issuers, including some 6,500 listed companies and 3,100 assigned corporate issuers.

Where and how do you source your data?

The analysis is based on the percentage of revenues generated by a company from material products and services. While some companies report exact figures on relevant product sales, others only report on geographic segments or do not report segment sales at all. The analyst in charge of the assessment takes all relevant and available sources into account to estimate the share of net sales a company generates with relevant products. Estimated sales percentages are based on the following assessment of publicly available information:

  • Reported sales revenue: Exact value of net sales generated with relevant products and/or services reported by the company.
  • Proxy-based estimated sales revenue: Share of net sales generated with relevant products and/or services estimated with "high" or "medium" certainty.
  • Industry knowledge-based estimations: No information disclosed regarding the share of revenue derived from products and/or services within the portfolio, and no concrete evidence available that would allow for an estimation with a higher certainty level.

In addition, companies are given the opportunity to comment on the evaluation as it is included in the ESG Corporate Rating report, which is submitted for company’s feedback every two years.

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. 


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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