ESG Data Guide 2023

ISS ESG - Potential Avoided Emissions Data

Data category

  • Environmental data
  • Research data

The data offers solutions for:

  • 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

Brief description of the data offering

ISS ESG has developed an innovative methodology that allows investors and corporates to assess the potential avoided emissions of their investments, i.e. emissions that would have been released if a particular action or intervention had not taken place. ISS ESG’s methodology covers potential avoided emissions throughout the value chain, for instance, those from an investees’ more carbon-efficient products or services.

While a carbon footprint focuses on gross greenhouse gas emissions and an impact assessment tries to capture trends, a third dimension of climate impact is the potential of GHG savings deriving from an investee’s product or service. This is particularly relevant for those investments that offer solutions and contributions to a low carbon future through their focus or product portfolio.

ISS ESG’s Potential Avoided Emissions methodology can be applied to a variety of assets, including public and private equity, bonds and infrastructure projects. Through ISS ESG’s proprietary platform, DataDesk, investors can access the PAE generated from utilities generation of renewable energy and the emissions avoided from turnkey technologies generating electricity from renewable source e.g. through wind, solar, hydro and geothermal. As of March 2022, the dataset includes approximately 260 utility and renewable energy companies covering the relevant companies that are included in the most widely used benchmarks and indices in the world.

For investments in infrastructure projects or companies with complex product portfolios, ISS ESG provides a bespoke approach to analysing Potential Avoided Emissions. The methodology covers the emissions throughout the value chain, including emissions from an investees’ more carbon-efficient products or services. The assessment can be applied to companies, infrastructure investments, real estate investments and green bonds.

Where and how do you source your data?

Thorough data collection is conducted by both using publicly available information and directly contacting investees to provide data on avoided emissions. If a holding is able to provide their own avoided emissions calculations this data is reviewed and amended if deemed imprecise. If no data is provided, a variety of methods can be applied (e.g., an analysis of climate friendly product lines; an extrapolation based on sectoral key figures from projects/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 holistic approach to climate impact

ISS ESG’s pioneering methodology for Potential Avoided Emissions sheds a light on the ‘positive’ climate impact and accomplishments of investments, enabling clients to identify climate leaders or disruptors among investees and potentially generate financial outperformance.

  • Expandable coverage

ISS ESG offers a bespoke approach to analysing Potential Avoided Emissions, applying the methodology throughout the value chain including various asset classes.

  • Simplified alignment

Potential Avoided Emissions data provides a valuable tool for developing low-carbon or climate-friendly products (i.e., cleantech funds and energy transition funds) or easily align investments with the climate goals set out in the Paris Climate Agreement.

  • 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 TCFD.

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@ISSESG’s extensive #carbon & #climate data features bespoke reports on the potential avoided emission of investments, e.g., companies, infrastructure & green bonds. 

Learn more about climate analytics solutions: https://www.issgovernance.com/esg/climate-solutions/climate-analytics/

#ResponsibleInvesting #ESG

Contacts

sales@iss-esg.com