ISS ESG

Next Generation Tobacco Products: Assessing Environmental and Social Risks and Impacts According to a new report by ISS ESG, in recent years, the tobacco industry has been moving away from traditional tobacco products such as cigarettes and transitioning to alternative, or smokeless, products, such as e-cigarettes. “Next generation products” (NGPs), such as electronic cigarettes and vapes, largely appeal to youths because of their various flavours (e.g., cotton candy), concealable product design, and the perception of comparatively lower health risks. Tobacco control measures are being implemented and expanded upon globally to counter these NGPs. In the second quarter of 2024, ISS ESG responded to these changes in the tobacco market by updating its tobacco methodology in the ISS ESG Corporate Rating to reflect the various social and environmental exposures of NGPs such as e-cigarettes. In the updated methodology, a more stringent assessment approach towards responsible marketing policies, including health warning content and packaging and labelling standards, and the use of carcinogenic additives is now in place. To accurately capture the environmental impacts of e-cigs, topics and indicators were added to assess product design and material efficiency, respectively. Read more of the analysis, authored by Alex Wen, at: https://lnkd.in/emUwB9aU Identify ESG risks and seize investment opportunities with the ISS ESG Corporate Rating: https://lnkd.in/dA-eMs3 #Sustainability #Tobacco #ESG

ISS ESG Augments Suite of Regulatory Solutions ISS ESG, the sustainable investment arm of ISS STOXX, today augmented its suite of Regulatory Solutions, with a new dedicated ESMA Fund Name Guidelines Solution, a new UK SDR Solution, plus enhancements to its existing EU Taxonomy Solution. The augmented suite of Regulatory Solutions supports investors in meeting various evolving ESG disclosure requirements in the European Union and UK. The new dedicated ESMA Fund Name Guidelines Solution helps investors to name their Article 6, 8 & 9 funds in the EU using an evidence-based and data-backed approach to quantify the proportion of sustainable investments in the funds and apply climate benchmark exclusion criteria. The new UK SDR Solution helps investors analyze the ESG characteristics of their investments and create custom criteria to label funds and comply with anti-greenwashing rules in line with the regulation. Both solutions provide investors with the flexibility to create custom screens tailored to specific investment objectives and strategies, and also access the underlying data to conduct a more granular analysis of their funds’ sustainability characteristics. Read more at: https://lnkd.in/e6qRGZ23 Learn more about ISS ESG Regulatory Solutions at: https://lnkd.in/dZvNBxd3 #Europe #ESG #Regulatory

The Latest in ESG and Stewardship Regulation – October 2024 Wondering about the latest regulatory developments related to ESG and stewardship worldwide? Read our latest ESG Financial Regulation Bulletin, authored by Noam Cherki, Hugo Gallagher, and Karina Karakulova, at: https://lnkd.in/e4JvWV82 #ESG #Regulation #Sustainability

Manufacturers and companies that sell PFAS-exposed products often face legal scrutiny, which is anticipated to grow as national and supranational regulations are proposed, implemented, and enforced globally. Investors aligned with the Principles for Responsible Investment may want to identify industries exposed to PFAS and incorporate it into their investment analysis and decision-making processes, whether these companies have committed to restrict or eliminate the use of PFAS in their products. Will there continue to be increased legal and financial liabilities in the PFAS chemical sector? Find out by downloading ISS ESG’s Actionable Insights: Top ESG Themes in 2024 - Mid-Year Review report: https://lnkd.in/edP8DJY5 #PFAS #ESG #Sustainability

Loïc DESSAINT gives the example of carrying out really in-depth research to create very specific indicators when working on behalf of groups of investors, to then select which companies to engage with. ISS ESG identified (for example) companies in breach of international standards or the UN SDGs, so that they could set engagement goals and "create progress over time". Priorities were decided by a combination of client priorities and the severity of the breach/controversy. He notes that not all companies have a full view of what's happening in their supply chain and this has to be considered when engaging on those issues. Tom says supply chain is rightly getting a lot more attention, with investors bringing together E and S issues, particularly human rights and land issues, on which to engage. He asks how shareholders can maximise the impact of systemic stewardship. Sara E. Murphy says she looks back to her time in asset management and how over stretched management can be. Coming up with bespoke strategies and approaches can mean that companies are being approached by multiple investors asking for slightly different things. "There are some very light touch strategy investors can employ" she says, in terms of how they use their vote and taking an "if x, then y" rules-based approach. That's both very defensible and can free up managers' resources for deep, extended engagement. "Rules-based proxy voting...is a way to extend one's reach." #GSF #stewardship #governance #corpgov #ICGN2024 #investors #assetowners #assetmanagers

The ISS ESG Freshwater Indices help identify companies with low exposure to freshwater risks in their operations and supply chains. The Water Risk Rating is assessed on a 0-100 scale, with 0-25 representing significant unaddressed risks and 50-100 representing low to negligible risks. The ISS ESG Performance Score seeks to assess corporate ESG risks and opportunities and is also measured on a 0-100 scale. The score allows for cross-sector comparisons using a standardized scale. As shown, the Freshwater index enhances its parent universe based on both metrics. The guideline for the ISS ESG Developed Markets Freshwater Index (ISSWRDMT) is available here: https://lnkd.in/gjZs6kSf Asset managers may work with ISS ESG to develop customized indices, or draw from turnkey indices focused on climate, governance, biodiversity, water, or EVA. To learn more about ISS ESG’s index offering please visit: https://lnkd.in/gYan8Ka #Water #ESG #Sustainability

Investigating Trends in GHG Emissions Over the past decade, many investors have been asked to measure the climate impact of their financing activities. A new analysis from ISS ESG explores the trend of company reported GHG emissions in the Energy and Utilities sectors and offers an initial viewpoint on what this trend implies for investor portfolios. With the number of companies reporting their Scope 1 2 emissions growing over time, the carbon profiles of investor portfolios have also changed. Analyzing the Energy and Utilities sectors within the STOXX Global 1800 index, which offers a global representation of developed markets, shows consistent decreases in many carbon metrics across the past four to five years. Read more of the analysis, authored by Sam Schrager and Harshpreet Singh, at: https://lnkd.in/e5pxRhVB Learn how ISS ESG Climate Solutions can help you better understand your exposure to climate-related risks at: https://lnkd.in/daEDikG #Investors #Sustainability #Climate

Growing regulation, combined with the complexity of climate change impacts and the diversity of investment preferences, means that the demand from financial institutions for Climate Scenario Analysis Tools is expected to continue growing. Learn about the expected implications for investors by downloading ISS ESG’s Actionable Insights: Top ESG Themes in 2024 - Mid-Year Review report: https://lnkd.in/edP8DJY5 #ClimateChange #Climate #ESG

ISS ESG Tapped as “Innovator” by Verdantix We are proud to announce that ISS ESG has received the classification of 'Innovator' in Verdantix's 2024 Green Quadrant Report, which focuses on prominent Climate Financial Data and Analytics providers. This recognition is a testament to all the great work we consistently do here at ISS ESG to help our customers solve their problems with trusted data, analytics and expertise! #Climate #Innovation #NetZero #GreenQuadrant

We are excited to sponsor CleanTech IQ’s Climate Week Transition IQ Conference in New York on September 23. Mirtha Kastrapeli, Managing Director with ISS ESG, will speak on the 'Investing in Natural Capital: Opportunities and Challenges' panel alongside other industry leaders. Mirtha will also moderate the session on 'Impact Investing with UN SDG Outcomes in Biodiversity, Water Resilience, and Climate Justice'. We hope you can join for Mirtha’s sessions and please also be on the lookout for our colleagues Agnes Terestchenko, CFA, Josh Isman and Kate Laskoski. Learn more about the conference at: https://lnkd.in/ephSzVhM #ClimateWeek #ESG #Nature #NaturalCapital