ISS ESG, the sustainable investment branch of ISS STOXX, has unveiled a new customizable version of its Climate Impact Report.
This innovative tool is designed to assist investors in enhancing their climate-related strategies, including target setting, risk management, reporting, and engagement activities. The launch reflects the latest advancements in best practices for measuring portfolio alignment, incorporating the recommendations from the Glasgow Financial Alliance for Net Zero to cater to market demands for a unified approach.
The new Climate Impact Report allows subscribers to tailor the Scenario Alignment section according to their preferences. Investors can choose from a variety of models provided by reputable sources such as the International Energy Agency, the Network for Greening the Financial System, and the United Nations Environment Programme (UNEP) One Earth Climate Model, developed with the University of Sydney. These models assess a wide spectrum of future scenarios, projecting temperature rises between 1.5°C and over 3°C, depending on policy and technological developments.
ISS ESG’s enhanced offering includes the option to select either a standard or advanced package, which feature two or five models respectively, and encompass up to 22 different scenarios. This selection is facilitated through the ISS ESG DataDesk platform, where the model choice is integrated into the portfolio analysis section. The report provides a detailed presentation of the selected model’s outcomes alongside comparative visuals of key metrics from other available models.
Investors subscribing to this report can evaluate their portfolio’s performance across medium and long-term horizons, specifically for the years 2030 and 2050. The report not only presents cross-point year analyses and Implied Temperature Rise but also enables in-depth sectoral analysis and identifies top contributing issuers, aiding in the assessment of climate risks within portfolios.
Till Jung, head of ESG at ISS STOXX, expressed his enthusiasm about this new offering: “As a leading provider of climate research, data, and analytics, and a trusted partner to the global institutional investor community, ISS ESG is pleased to announce the launch of its customizable Climate Impact Report, the latest new offering in its comprehensive suite of climate solutions, with further innovations planned in 2025.”
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