Institutional Shareholder Services Inc. - Custom Climate Voting Factors

Data category

Proxy Voting Policy

What data do you provide?

In August 2019, ISS launched a new Custom Climate Voting service, combining ISS’ extensive and unique climate data and proprietary research with internal expertise, data and research on governance and voting. The service draws on widely recognized frameworks including the Task Force on Climate-related Financial Disclosures (TCFD), to help investors more easily reflect and vote their views on a company’s climate change risks, disclosures and performance, and giving a variety of options for voting recommendations.

The service uses a robust and transparent scorecard approach based on multiple climate-related factors, giving investors the flexibility to weigh multiple climate change impact and risk factors to produce customized and targeted vote recommendations.

Five key topical pillars support the Custom Climate Voting service:

  • Sector-specific materiality following the ISS Carbon Risk Classification.
  • 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 greenhouse gas emission intensity, following the GHG protocol’s carbon accounting methodology for scope 1-3 GHG emissions.
  • Future climate performance signals drawing from ISS Carbon Risk Ratings and sector-specific controversial business practices.

ISS proxy research reports for all companies in the coverage universe of the Custom Climate Voting Service include ISS’ Climate Awareness Scorecard, which reflects data and reporting on a company’s climate change-related disclosures and performance. The Scorecard uses a range of climate-related factors to indicate a company’s disclosure practices and performance record including its industry risk group. Companies are evaluated on overall disclosure (Governance, Strategy, Risk Management, Metrics & Targets) and performance factors (Norms, GHG Emissions, Performance Ratings).

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.

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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