ESG Data Guide 2023

ISS ESG - Real Asset Analysis

Data category

  • Environmental data
  • Ratings
  • Research data

The data offers solutions for:

  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Reporting: TNFD
  • Transition plan assessments
  • Reporting: Other Regulations

Who are the data users?

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

Brief description of the data offering

ISS ESG’s Climate Physical Risk analysis for real assets (Real Asset Analysis) aims at understanding how asset value and asset-related activities may be affected by natural physical climate hazards and how these effects may be exacerbated by climate change.

A real-asset-specific assessment allows investors and companies to evaluate and compare their past and future risk exposure at specific locations, informing the development of effective risk-management and exposure-reduction strategies.

Property and real assets can be exposed to physical risks capable of causing immediate physical damage. Such damage can, for instance, result in significant repair costs (capital expenditure) and business interruptions that can decrease revenues for commercial property assets. In the long-term, physical risks can also result in asset devaluation and difficulties accessing insurance for assets in high-risk locations. Temperature increases and extreme heat can lead to decreased labor productivity and increased operational costs for assets used as commercial facilities. The Real Asset Analysis focuses predominantly on asset-damage metrics that the user can further analyze depending on asset and property use cases (e.g. commercial property, residential property, agricultural land, etc.).

ISS ESG’s Real Asset Analysis assesses the exposure of assets to physical risks by simulating the damage impact of four acute hazards that typically cause near-immediate asset damage (river floods, coastal floods, wildfires, tropical cyclones) and by estimating the frequency of severe events for two chronic physical hazards (droughts and heat stress) that typically result in longer-term, gradual effects. The estimation of future metrics is performed for climatic conditions imposed by two future emission scenarios referred to as the likely and worst-case scenarios.  

The Real Asset Analysis is an internal, proprietary interface used by ISS ESG to support clients. Real Asset Analysis Reports may be delivered based upon the terms of the agreed project. Real Asset Analysis Reports would be delivered in Excel format by the dedicated ISS ESG Team via SFTP or email.

ISS ESG has tentative plans to make the Real Asset Analysis available for client use in the future.

Where and how do you source your data?

ISS ESG uses information provided by the client to populate inputs within the Real Asset Analysis. Input types include known addresses or cardinal coordinates, asset values as well as asset and property use cases (e.g. commercial property, residential property, agricultural land, etc.).

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?

  • Covers six of the costliest physical climate hazards: river floods, coastal floods, wildfires, tropical cyclones, heat stress and droughts, so both acute physical risks and chronic physical risks.
  • Covers historical risk exposure and future risk exposure by 2030 and 2050, modelled using detailed scenario analysis for a likely scenario Representative Concentration Pathway (RCP) 4.5 and a worst-case scenario (RCP 8.5).

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ISS ESG’s Real Asset Analysis assesses assets’ exposure to physical risks, simulating the impact of four acute hazards that typically cause near-immediate asset damage and estimating the frequency of severe events for two chronic hazards that have longer-term effects.

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Contacts

sales@iss-esg.com