Institutional Shareholder Services Inc. - Climetrics

Data category

Verification/certification data

What data do you provide?

Climetrics is the world’s first climate impact rating for funds, enabling fund investors to integrate climate change into their investment decisions. The Climetrics rating, which was introduced to the market in 2017 by ISS ESG in partnership with CDP, measures the climate risk and opportunities of a fund against other funds in its sample, represented by a 1-5 leaf rating, with five being the best. 

The scoring system is based on three quantitative layers of analysis:

  • Portfolio score measuring how well companies disclose and manage material risks and opportunities linked to climate change, water security and deforestation.
  • Asset manager score assessing an asset manager's level of public action to integrate climate change into their governance and investment processes.
  • Investment policy score rewarding funds with an explicit ESG policy and those carrying a European SRI label.

This results in an overall score for each fund, which is compared to all scored funds and then assigned a final 1-5 leaf rating. An above average Climetrics rating (4 or 5-leaf rating) indicates that, on average, the companies in a fund‘s portfolio are more carbon efficient, better at publicly disclosing and managing climate-related risks and opportunities, and more likely to deploy key technologies supporting the energy transition. Subscribers to Climetrics receive a rating license, enabling them to publicly display the climate rating of its investment funds to clients and other stakeholders.

The Climetrics product family includes the following:

  • Fund ratings data feeds covering 15,000 individual funds
  • Climetrics label license, promoting a fund’s climate performance
  • Climetrics company scores for over 6,000 corporate issuers
  • Customised portfolio screening service

Where and how do you source your data?

Funds are scored across three different levels, each focusing on a different aspect of the investment process. The primary focus is on the climate risks and opportunities of the individual holdings within each fund. This is to assess actual investment decisions taken by the funds regarding climate change. To assess a fund’s holdings with respect to their climate risks, a bespoke scoring methodology for companies was developed for Climetrics.

Besides the holdings analysis, the Climetrics scoring methodology also includes an assessment of the asset manager’s public action on climate change and rewards funds which have an explicit socially responsible investment policy. This intends to address different aspects of the investment 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

Integrate #ClimateChange into your investment decision with @issesg’s Climetrics – the world’s 1st climate rating for funds. The rating gives an overall score based on 3 pillars: a fund’s portfolio, its investment policy, & the asset manager’s governance: bit.ly/2ZoaDmJ 

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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