ESG Data Guide 2023

ISS ESG - Climate Voting Policy

The data offers solutions for:

  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Reporting: Impact
  • Reporting: TCFD

Who are the data users?

  • Financial institutions
  • Government
  • Investors
  • Trustees
  • Index providers; Institutional investors; Asset managers; Asset owners; Fund managers; Banks; Universities; Research firms

Brief description of the data offering

ISS offers a climate-specific specialty proxy voting policy that focuses on promoting positive climate performance, management and disclosure. Driven by ISS ESG’s leading, in-house Climate, ESG Ratings and Norm-Based Research solutions, the new Climate Voting Policy provides an actionable, transparent framework for investors to exercise their voting rights with reference to their portfolio companies’ climate disclosures and performance. 

The Climate Voting Policy is based on principles developed from widely recognized international frameworks, such as the Taskforce for Climate-related Financial Disclosure (“TCFD”), to provide investors with an informed, consistent, climate-related voting approach. The policy uses a scorecard approach reflecting varied climate-related risk factors, resulting in insightful research and vote recommendations.

The Climate policy incorporates a detailed analysis of climate related topics under five key topical pillars:

  • Sector-specific materiality following the ISS Carbon Risk classification assessing industry-specific risks and mitigation strategies.
  • 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 GHG emission intensity, following the GHG protocol’s carbon accounting methodology for scope 1-3 GHG emissions.
  • Future climate performance signals based on ISS ESG’s Carbon Risk Rating, evaluating the future evolution of issuers’ carbon emissions and how the company tackles climate change along the value chain

When called for under the policy framework, ISS’ Climate Voting Policy may recommend, for example, adverse votes on the re-election and/or discharge (in applicable markets) of board members responsible for climate-related risk oversight or for failures to sufficiently oversee, manage, or guard against material climate change-related risks, or votes for shareholder proposals with a positive impact on the company’s climate change performance or disclosure.

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. 

The specialty Climate Voting Policy guidelines are publicly available on ISS’s website and can be found here.

What is the cost for your data offering?

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, unique climate data and proprietary research, along with issue expertise, provides a model for assessment of a company’s climate-related performance and disclosures that, in turn, is used to inform climate-based proxy voting recommendations for subscribing clients.
  • Holistic view of climate impact. The Climate Voting Policy includes views on a company’s GHG emissions, climate strategy, and impact of its activities on climate, putting these into context within its sector and incident-based climate risk exposure. The Climate Voting Policy can be part of a climate-concerned investor’s toolbox and can complement shareholder engagement.
  • 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.
  • International expertise and local support. Exceptional client service is a hallmark of ISS’ business model with local research, consultants and operational support represented in a dedicated service team. The client support team builds the bridge for clients to the highly experienced team of analysts to ensure clients are supported by knowledgeable professionals to support business objectives.
  • 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.
  • Workflow benefits from technological innovation. 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

@ISSESG’s Climate Voting Policy provides #investors with a high-quality solution to apply a consistent #climate-focused lens to inform their voting decisions. Learn more about the Climate Voting Policy guidelines and updates: https://www.issgovernance.com/policy-gateway/voting-policies/

Contacts

sales@iss-esg.com