ESG Data Guide 2023

ISS ESG - E&S Disclosure QualityScore

Data category

  • Environmental data
  • Rankings
  • Social data
  • Research data

The data offers solutions for:

  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Nature-based information: Biodiversity
  • Nature-based information: Water
  • Social impact analysis and insight

Who are the data users?

  • Corporates
  • Trustees
  • Investors
  • Government
  • Financial institutions
  • Index providers

Brief description of the data offering

Environmental and Social Disclosure (E&S) QualityScore provides a measure of corporate disclosure practices and degree of transparency provided to shareholders and other stakeholders. Investors report that company disclosure is a meaningful signal in its own right –i.e. limited disclosure is often indicative that further investigation is needed to rule out the presence of poor practice –and a prerequisite to an effective comparison of company performance against peers.

E&S Disclosure QualityScore uses a numeric, decile-based score that indicates a company’s disclosure practices relative to their industry group. Scores measure the depth and extent of disclosure. This showcases the company’s understanding of its environmental and social risks, along with its preparedness to face and mitigate them, and drastically increasing its responsibility and accountability. Scoring is framed around eight categories under two pillars, the environmental and social. The environmental pillar includes scores on management of environmental risks and opportunities, carbon and climate, natural resources, and waste and toxicity. The social pillar includes scores on human rights, labour, stakeholder & society, and product safety. The content of the environmental and social pillars has been informed by the recent developments in disclosure standards and frameworks, such as the Global Reporting Initiative (GRI), the SASB standards and the Task Force on Climate-related Financial Disclosures (TCFD).

E&S Disclosure QualityScore products are data-driven scoring and screening solutions designed to help institutional investors monitor the ESG disclosures of their portfolio companies.

Measuring the depth and extent of disclosure of more than 5,200 issuers globally as of March 2022, decile-based scores represent a relative measure based on the raw score calculations of the other companies in their specific industry group. A score of 1 indicates relatively higher quality disclosure and transparency practices, and conversely, a score of 10 indicates relatively lower quality.

Where and how do you source your data?

E&S Disclosure QualityScore focuses on a company’s disclosure practices. Data is collected from company publications including mainstream filings, sustainability and corporate social responsibility reports, integrated reports, publicly available company policies and information on company websites. Confirmation of company participation in or formal endorsement of authoritative multi-stakeholder initiatives is collected from websites or member list made available by the relevant initiatives.

Aside from issuer requests for update, company data is updated annually on a rolling basis, based roughly on the timing of their annual general meeting which is the typical time of filing annual reports and sustainability reports, issuing updates on company policies and introducing other significant changes to corporate disclosures.

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?

  • High quality data. ISS ESG’s data-driven scoring and screening methodology is based on recognized frameworks to support investor mandates to comply with emerging standards. The methodology focuses on material aspects of disclosure practices, including global disclosure standards and key industry initiatives. Further, ISS employs a three-step data quality assurance and verification process, supported by experienced data analysts.
  • Focus on materiality. Highlights industry-relevant issues, and aligns investors with leading market frameworks (TCFD, SASB). Key sustainable initiatives are universal, thematic and materiality focused. Quantitative and qualitative aspects of environmental and social disclosure practices are identified through a review of authoritative, investor-backed sustainability initiatives as well as recognized reporting standards and guidance.
  • An integrated environmental, social and governance solution. The service combination of the various governance and responsible investment related services offered by ISS allows investors to address ESG challenges with one common approach and rely on global account management and research teams able to offer coherent and unified answers and solutions to their ESG needs. ISS ESG is a true one-stop shop, able to support investors across all ESG related topics.

Tweet

#Investors; want to identify leaders and laggards in the industry based on #environmental and #social company disclosures? Turn to @ISSESG's E&S Disclosure QualityScore, covering 5,200+ issuers across industry groups: https://www.issgovernance.com/esg/ratings/environmental-social-qualityscore/

#ESG

Contacts

sales@iss-esg.com