ISS ESG, the sustainable investment arm of index provider ISS STOXX, has augmented its suite of climate solutions with a new industry average emission-intensity measurement tool. The dataset looks to support banks and insurance companies through their compliance with mandatory climate-related disclosure frameworks, such as the Corporate Sustainability Reporting Directive and the European Banking Authority’s (EBA) Pillar 3 ESG Disclosures. The new tool will enable users to estimate emissions for non-listed companies, small and medium enterprises, and other alternative investments – as well as help banks project emissions for large portfolio companies where data is scarce to support their EBA Pillar 3 reporting. This week, ISS ESG also released its mid-year review of top ESG themes. Complementing the ‘Actionable Insights: Top ESG Themes in 2024 — Global Edition’ report published in January, the review draws on the ISS STOXX data with research and insights from ISS ESG’s financial research and sector leads, climate specialists and regulatory experts. The report aims to help investors assess the extent to which key ESG risks and investment opportunities identified in January as likely to impact their portfolios in 2024 have been actionable so far. Trends emerging in H1 2024 include a steady expansion of corporate sustainability disclosure requirements globally, as well as steps to harmonise reporting standards for corporate sustainability disclosure. Additionally, environmental risks, including climate change, loss of natural capital and ecosystem services through deforestation, have all been flagged major drivers behind regulation, and technological advancement, such as increasing digitalisation or AI developing, as presenting both opportunities and risks.
