ISS ESG - Custom Climate Voting Factors

Data category

Proxy Voting Policy

What data do you provide?

ISS offers a 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.

What are the key attributes that differentiates the data you offer?

  • Leverages leading in-house ESG data solutions. ISS ESG’s extensive and unique climate data and proprietary research along with issue expertise is used to provide a model for assessment of a company’s climate-related performance and disclosures that, in turn, is used to inform proxy voting recommendations for subscribing clients.
  • Superior flexibility and customization from start to finish. The Custom Ratings solution provides investors with Customizable weightings and flexible options for targeting of different voting items where climate change is not an agenda topic.
  • Robust and transparent scorecard approach. Policy framework relies on a scorecard approach, reflecting varied climate-related risk factors to produce insightful research and subsequent vote recommendations. Scorecard results build year-on-year enabling evaluation of company performance over time.
  • Workflow benefits from technological innovation. Custom voting recommendations delivered through ISS’ industry-leading ProxyExchange voting and workflow platform, which provides a wealth of powerful tools which enable more intelligent workflows for clients while setting the standard for transparency in the industry.

Tweet

Integrate climate-related factors into your #voting decision with @ISSGovernance’s Climate Voting Policy supported by 5 topical pillars:

  • sector-specific #materiality
  • disclosure signals
  • norms violations
  • current & future #climate performance signals

https://www.issgovernance.com/policy-gateway/voting-policies/

Contacts

Maximilian.Horster@iss-esg.com

Corporate Statements

Turning knowledge into action

Maximilian Horster, head of ISS ESG, foresees several trends will shape the environmental, social and governance (ESG) investment space over the next 12 months. Environmental Finance spoke with him to see how ISS ESG is tailoring its data, index and reporting solutions as a result

Guide entries

Bespoke Research & Advisory Solutions

Carbon & Climate Data

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Climate Advisory Services

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