Institutional Shareholder Services Inc. - Climate Voting Policy

Data category

Proxy Voting Policy

What data do you provide?

In March 2020 ISS launched a climate-specific specialty proxy voting policy that focuses on promoting positive climate performance, management and disclosure. Driven by ISS ESG’s leading, in-house Climate, ESG Ratings and Norm-Based Research solutions, the new Climate Voting Policy provides an actionable, transparent framework for investors to exercise their voting rights with reference to their portfolio companies’ climate disclosures and performance.

The Climate Voting Policy is based on principles developed from widely recognized international frameworks, such as the Taskforce for Climate-related Financial Disclosure (“TCFD”), to provide investors with an informed, consistent, climate-related voting approach. The policy uses a scorecard approach reflecting varied climate-related risk factors, resulting in insightful research and vote recommendations.

The Climate policy incorporates a detailed analysis of climate related topics under five key topical pillars:

  • Sector-specific materiality following the ISS Carbon Risk classification assessing industry-specific risks and mitigation strategies.
  • Disclosure signals featuring over 200 climate disclosure indicators, aligned with TCFD disclosure requirements.
  • Norms violations based on violations of globally recognized climate norms.
  • Current climate performance signals such as GHG emission intensity, following the GHG protocol’s carbon accounting methodology for scope 1-3 GHG emissions.
  • Future climate performance signals based on ISS ESG’s Carbon Risk Rating, evaluating the future evolution of issuers’ carbon emissions and how the company tackles climate change along the value chain 

When called for under the policy framework, ISS’ Climate Voting Policy may recommend, for example, adverse votes on the re-election and/or discharge (in applicable markets) of board members responsible for climate-related risk oversight or for failures to sufficiently oversee, manage, or guard against material climate change-related risks, or votes for shareholder proposals with a positive impact on the company’s climate change performance or disclosure.

Where and how do you source your data?

Voting recommendations are driven by ISS ESG’s in-house Climate, Ratings and Norm-Based Research solutions. Data is collected based on the sources and methodology used by each ISS ESG solution. ISS ESG data is typically derived from company filings, as well as ongoing event-driven data updates as reflected in public disclosure, press releases and company web sites.

The specialty Climate Voting Policy guidelines are publicly available on ISS’s website and can be found here.

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. 

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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