Stockholm (NordSIP) – As efforts to incorporate sustainability factors into investment decisions continue to gain momentum, the availability of pertinent data becomes increasingly important for smaller players to be able to keep up.
In this spirit, ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), announced the launch of a new online portal, the ISS ESG Gateway to provide public access to a range of high-level ISS ESG corporate ratings and scores as well as fund ratings, ranked from A+ (excellent performance) to D- (poor performance).
The new portal will initially provide ratings and scores on more than 6,100 corporations across the globe, including roughly 3,000 in the Americas, 1,700 in EMEA, and 1,400 in Asia-Pacific, as well as ratings for approximately 30,000 funds spread across 45 jurisdictions. Information provided via the ISS ESG Gateway will be updated monthly with any change to an entity’s rating or score reflected on the 1st of each month. Access is free-of-charge. Overall the data covers Australia, Brazil, Canada, France, Germany, India, Japan, Netherlands, Sweden, UK, USA, S&P500, STOXX600
Prime Companies
The new publically available data from ISS ESG includes ESG Corporate Ratings and, where applicable, the “Prime” Status of a rated company, Governance QualityScores, SDG Impact Ratings, and ESG Fund Ratings. Companies are awarded Prime Status if the overall ISS ESG Corporate Rating letter grade meets or exceeds the industry-specific Prime threshold defined by ISS ESG’s Industry Classification Matrix. The Prime threshold reflects the overall magnitude of an industry’s risk exposure and footprint, and is C+ for the majority of industries, B- for high ESG risk industries and C for industries with a lower ESG risk profile
“Against the backdrop of exponential growth and interest in ESG investing, we are pleased to deliver on our commitment to transparency by affording interested stakeholders access to high-level, timely, and relevant information through the ISS ESG Gateway,” said Dr Maximilian Horster, Head of ISS ESG. “The availability of top-level ISS ESG ratings and scores will enable capital market stakeholders and others to gain valuable insight into the array of sustainability and governance challenges and opportunities facing institutional investors and their portfolio companies alike.”
Governance QualityScore
Also now available via the ISS ESG Gateway is Governance QualityScore, a data-driven scoring and screening solution designed to enable quality reviews of a company’s corporate governance across four key areas: Board Structure, Compensation, Shareholder Rights, and Audit & Risk Oversight. Scores provide an indication of relative risk and range from 1 (low risk) to 10 (high risk). In addition, the new site will provide access to ISS’ SDG Impact Rating, which provides a holistic measurement of a company’s positive or negative impact on the 17 sustainable developments goals across more than 100 data factors. Companies are rated on a scale of -10 (significant negative impact) to +10 (significant positive impact).
“As a leading ESG research and data provider and trusted partner to the global institutional investor community, we are excited to announce the launch of the ISS ESG Gateway to provide access to our world-class ESG ratings and scores,” said Bonnie Saynay, ISS ESG’s Global Head of ESG Investor Research & Data Strategy. “ISS ESG ratings and scores are underpinned by transparent methodologies, credible and verified data, and quality management and assurance by nearly 300 research analysts devoted to helping clients execute on a full range of sustainable investment strategies and objectives.”
The ISS ESG Fund Rating, meanwhile, provides a way to evaluate the environmental, social and governance performance of equity and bond funds globally. The key fund rating results are derived primarily from the pioneering ISS ESG Corporate and Country Ratings, which provide financially material and holistic sustainability signals on companies’ and countries’ current and future ESG performance. Additionally, results and data from the Governance Quality Score, Norm-Based Research, and Climate Solutions are reflected.
