ESG Data Guide 2023

ISS ESG - Carbon & Climate Data

Data category

  • Environmental data
  • Research data

The data offers solutions for:

  • Carbon footprinting
  • Climate scenario analysis
  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Reporting: CSRD
  • Reporting: Impact
  • Reporting: TCFD

Who are the data users?

  • Corporates
  • Financial institutions
  • Government
  • Investors
  • Trustees
  • institutional investors, asset managers; Asset owners; Fund managers; Banks; Universities; Research firms

Brief description of the data offering

ISS ESG provides carbon and climate data on a universe of more than 35,000 issuers across asset classes as of March 2022. ISS ESG’s comprehensive data base of GHG emissions include both reported emissions data and modelled estimations for non-disclosed emissions, or those who report with a low trust metric (according to internal analysis).

ISS ESG utilizes a sophisticated, proprietary approximation system to estimate emissions, which includes approximately 800 climate-relevant sector and subsector-specific models. The modelling system was developed over the course of three years in partnership with the Swiss Federal Institute of Technology (ETH Zurich).

Available data factors include direct emissions (scope 1), energy indirect emissions (scope 2), and other indirect (scope 3), including both upstream (supply chain) and product usage (life cycle) emissions. Emissions intensity data is also available identifying an issuer’s total (scope 1 and 2), scope 1, and scope 2 carbon emissions intensity. Additional data factors include physical and transition value at risk (VaR), science-based climate or emissions targets, potential avoided emissions, data source, and trust metric.

Carbon footprint data is available for the following asset classes: listed entities, fixed income, private equity, most sovereigns, municipal, sub-/supranational issuers, private equity and debt issuers, corporate loans, and project finance including listed and unlisted infrastructure, real estate and real assets.

Where and how do you source your data?

For scope 1 and 2 carbon emissions, ISS ESG collects self-reported greenhouse gas emissions data from publicly available sources, including corporate social responsibility reports, CDP, investor relations communications, websites and others. This data is assigned with a trust metric to indicate the quality of self-reported data.

For non-reporting companies, or those who report with a low trust metric, ISS ESG uses in-house emissions modelling methodology, allowing ISS ESG to calculate GHG emissions of companies based on those criteria most relevant to their line of business.

Company reporting of Scope 3 emissions data is far less prevalent than reporting of Scope 1 & 2 emissions. Even if self-reported, Scope 3 emissions are often of poor quality and relevant categories are excluded due to the complexities in calculations and lack of data availability. ISS ESG’s unique and powerful approach to estimate the Scope 3 carbon footprint delivers broad coverage and high-quality data through a transparent analysis.

Self-reported Scope 3 emissions are only included in the final data set if they cover all relevant categories for a given industry and pass a rigorous quality check. If the relevant categories for a company are excluded from reported Scope 3 values, the data is deemed unreliable, and ISS ESG will provide approximated Scope 3 values in lieu of the reported numbers. All Scope 3 GHG emission data includes an indication of source (self-reported or modelled), and source category used (if applicable).

For modelling Scope 3 emissions, ISS ESG uses a combination of approaches to estimate the upstream and downstream Scope 3 emissions of companies.

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?

  • A unique and sophisticated emissions modelling system

ISS ESG utilizes a sophisticated approximation system to estimate emissions, including approximately 800 climate-relevant sector and subsector-specific models, allowing ISS ESG to calculate the GHG emissions of companies based on those criteria that are most relevant to their line of business.

  • Comprehensive Coverage

ISS ESG’s data base of GHG emissions contains more than 35,000 issuers across a range of asset classes as of March 2022.          

  • Data Quality and Transparency

ISS ESG’s granular emissions modelling system was developed over three years with scientists from ETH Zurich. ISS ESG is committed to applying the highest standards of greenhouse gas accounting capabilities with unmatched breadth and depth of investments coverage, verification and approximation. Additionally, ISS ESG helps to ensure transparency by including a trust and quality rating for every data point.

  • Experience

ISS ESG has worked with financial market participants and governments to screen trillions of dollars in assets under management for their climate impact. ISS ESG partners with a wide range of other specialists on a non-exclusive base to complement our research and service with premier market offerings.

  • Expertise

ISS ESG’s dedicated team of climate specialists are industry leaders on climate change issues. Members of the team have partnered in the 2° Investing Initiative, served as resources at various workgroups on financed emissions including the United Nations Environment Programme Finance Initiative, assisted in the development of ISO standards, and contributed to the works of the Task Force on Climate-related Financial Disclosure (TCFD).

 

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Contacts

sales@iss-esg.com