ISS ESG - SFDR Principle Adverse Impacts Solution

Data category

SFDR Principle Adverse Impacts Solution

Brief description of the data offering

The European Union’s Sustainable Finance Disclosure Regulation (SFDR) introduces new mandatory and additional reporting requirements against a set of prescribed Principal Adverse Impact indicators on an entity and product level. The regulation aims to improve the level of disclosure regarding responsible investing in the EU, redirecting flows of capital to a more sustainable economy.

In order to assist clients in meeting the requirements of the SFDR, ISS ESG has reviewed the regulation and developed a dedicated off-the-shelf data feed covering the Principle Adverse Impacts indicators.This solution includes a mapping of both the mandatory and additional indicators to its ESG solutions, leveraging justifiable proxies in the absence of reported and disclosed data, and commencing further data collection, enabling Financial Market Participants to measure the performance of their investments against the regulatory defined indicators and metrics in order to comply with the new disclosure obligations.

ISS ESG’S Dedicated SFDR Principal Adverse Impact Solution covers 15 of the 16 mandatory indicators for corporates and sovereigns; coverage for the one outstanding indicator is anticapted by year-end 2021. The solution further covers 20 of the 41 additional indicators for corporates and sovereigns (participants must report on at least one additional environmental and one additional social indicator). ISS ESG’s solution does not currently cover real estate assets.

ISS ESG continues to follow developments in the regulation requirements and intends to report on all SFDR indicators throughout future iterations of the product.

Where and how do you source your data?

Data is primarily sourced from publicly available information, including a company’s own disclosure and reporting, proxy statements, reputable news, governmental and international institutions, recognised international or local non-governmental organizations, and non-biased subscription databases such as the CDP.

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?

-Comprehensive Coverage. The SFDR Principle Adverse Impact Solution covers a minimum universe of more than 7,000 corporate issuers, which is under extensive expansion in 2021, and an additional 190 countries.

-Bespoke Capabilities. ISS ESG’s in-house Bespoke ESG Research & Advisory solutions team has the capability to create ESG research and assessments on additional asset classes, such as real estate, infrastructure, private equity and private debt through various customizable scorecarding tools.

-Powered by proprietary data and insights. The SFDR Principle Adverse Impact Solution leverages a broad range of high-quality research products within the ISS ESG universe.

Tweet

Measure your investments against regulatory defined Principal Adverse Impact indicators and metrics & report the results with @ISSESG's SFDR Principal Adverse Impact Solution.

Learn more: https://www.issgovernance.com/esg/regulatory/sfdr-pai-solution/

#ESG #ResponsibleInvesting

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

Carbon Footprint Report

Carbon Risk Rating

Climate Advisory Services

Climate Impact Report

Climate Voting Policy

Climetrics

Controversial Weapons Research

Country Controversy Assessment

Custom Climate Voting Factors

Custom Rating

Director and Board Data

Energy & Extractives Screening

Environmental & Social Disclosure QualityScore

ESG Corporate Rating

ESG Country Rating

ESG Fund Rating

ESG Index Solutions

ESG Portfolio Analysis

ESG Raw Data

ESG Scorecard

EU Taxonomy Alignment Solution

EVA

Executive Compensation Data & Profiles

Global Sanctions Screening

Governance QualityScore

Norm-Based Research

Pooled Engagement

Potential Avoided Emissions Data

Responsible Investment Policy Development

SDG Impact Rating

SDG Solutions Assessment

Second Party Opinion

Sector-Based Screening

SFDR Principle Adverse Impacts Solution

Shareholder Meeting Results

Stewardship Toolkit