ISS ESG, the responsible investment arm of Institutional Shareholder Services (ISS), has launched a net zero portfolio reporting tool for investors to identify positive and negative performing companies against a range of individual climate related metrics.
Th
e tool creates an aggregated view of a portfolio’s readiness for net zero, considering current and potential future emissions, disclosure performance, fossil fuel exposure, fossil asset expansion, climate mitigating revenue and target setting.
Initial coverage includes all of the most material sectors of major developed market indices.
The tool also supports the recently launched ISS ESG Collaborative Engagement Solutions which involves around 30 public companies over a two-year engagement cycle who are identified as underperforming according to ISS ESG’s carbon risk rating and net zero alignment data.
In tandem, ISS ESG has also enhanced its Energy & Extractives offering, which tracks companies within the energy sector and their involvement in green (renewable) and brown (fossil fuel) expansion projects.
The IEA’s Net Zero by 2050 Report Roadmap, sets out that renewable energies must be upscaled rapidly and investments into fossil fuel projects must stop – some immediately, over the next few years.
The new service will enable investors to access data in order to assess a company’s actions and commitments in this area.
The new dataset will capture factors from ongoing and planned projects related to renewable energy, coal and other fossil fuels, and will quantify the amount of capital expenditure as a percentage allocated by the company towards respective expansion projects.
“The number of companies pledging to reach net zero is growing rapidly,” said Dr. Maximilian Horster, head of ISS ESG. ” ISS ESG’s augmented solutions launched today support investors in verifying the extent to which their portfolio companies’ publicized targets and commitments are aligning with ongoing or planned operational activities.”
©Markets Media Europe 2022
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