ISS ESG / INDEX

TURNKEY INDEX SOLUTIONS

Optimize your ESG strategy with market-leading index solutions.

BROWSE ISS ESG THOUGHT LEADERSHIP

License turnkey ESG benchmark and thematic indices to track your portfolio’s performance and create index-linked investment products.

Turnkey Index Solutions

Benefit from an open architecture approach

Turnkey Index Solutions

Develop index-based ESG strategies & products

FULFILL YOUR ESG INVESTMENT OBJECTIVES WITH ISS ESG INDEX SOLUTIONS

index-15

Develop investible
products

index-16

Identify & track
passive ESG investments

index-17

Benchmark portfolio
performance

UNPARALLELED ESG INSIGHTS

A solid foundation of comprehensive & high quality data to meet your ESG investing goals.

SCREENING & CONTROVERSIES
Norm-Based Research
Controversial Weapons Research
Energy & Extractive Screening
Sector-Based Screening
Global Sanctions Screening
RATINGS & RANKINGS
ESG Corporate Rating
ESG Country Rating
Environmental & Social Disclosure QualityScore
Governance QualityScore
CLIMATE
Scope 1&2 and Scope 3 Emissions
Emissions Intensity
Potential Avoided Emissions
Physical Risk
Scenario Analysis
Carbon Risk Rating
IMPACT & UN SDGs
SDG Impact Rating
SDG Solutions Assessment
GOVERNANCE
Director / Board Data
Director Skills & Bios
Director Pay Data
Executive Compensation Data & Profiles

INTRODUCING THE ISS ESG INDEX FAMILY  

Powered by high-quality, reliable, and relevant ESG data.  

US CYBER RISK INDEX
cyber-risk-index

US Cyber Risk

Serious cyber security incidents can lead to operational, legislative, and reputational risks for investors. 

ISS ESG US CYBER RISK INDEX

Screen for companies with low or negligible cyber-related risks based on the ISS ESG Cyber Risk Score, which represents the likelihood that an organization will suffer a material cyber incident within the next 12 months. The index constituents also have a medium or high ISS ESG Corporate Rating and comply with market standards related to international norms and controversial weapons.  

FRESHWATER INDEX
freshwater

As the occurrence of severe droughts and floods is increasing, investors are keen to understand the potential impact on their investment portfolios.

ISS ESG FRESHWATER INDEX SERIES

Identify companies with low or negligible freshwater-related risks based on the ISS ESG Water Risk Rating, which considers companies’ Water Risk Exposure and Water Risk Management. The index constituents also have a medium or high ISS ESG Corporate Rating and comply with standards related to international norms and controversial weapons.

EVA LEADERS INDEX
eva

ESG + F

ESG + F (financial materiality) is here to stay, as ISS’ proprietary research demonstrates that firms that exhibit both high-ESG performance and high-EVA Margin significantly outperform firms that are low-ESG and low-EVA Margin.

ISS ESG EVA LEADERS INDEX SERIES

Track sector-leading companies with superior economic profit (EVA Margin), medium to high ESG performance, and adherence to key international norms and controversial weapons frameworks.

Learn more about EVA here.

GOVERNANCE QUALITYSCORE INDEX
governance1

Good corporate governance is a foundation for the responsible management of business risks and opportunities.

ISS ESG GOVERNANCE QUALITYSCORE INDEX SERIES

Identify well-governed and responsible companies that excel in managing governance risks across four key areas: Board Structure, Compensation, Shareholder Rights and Audit & Risk Oversight.

US DIVERSITY INDEX
us-diversity1

Good corporate governance is a foundation for the responsible management of business risks and opportunities.

ISS ESG US DIVERSITY INDEX

The first US Diversity Index that allows investors to analyze both gender and ethnic diversity for board members and named executive officers.

4344563

EXPLORE SOLUTIONS AVAILABLE FOR LICENSE

GOVERNANCE

The ISS ESG Governance QualityScore Index Series tracks large-, and mid-cap companies in the United States, Europe, and Asia-Pacific (ex-Japan) that excel in managing governance risks across four key areas: Board Structure, Compensation, Shareholder Rights and Audit & Risk Oversight.

Companies are considered eligible for inclusion/exclusion in the index based on insights drawn from the ISS ESG Governance QualityScore, Norm-Based Research and Controversial Weapons Research.

The pioneering ISS ESG US Diversity Index is the first US diversity index in the market that allows investors to analyze both gender and ethnic diversity for board members and named executive officers.

 

The index tracks large-, mid-, and small-cap U.S. companies that exhibit a broad ethnic and gender representation of directors and named executive officers.

SCREENING & CONTROVERSIES

The ISS ESG US Cyber Risk Index can help investors identify and track companies with low or negligible cyber-related risks based on the ISS ESG Cyber Risk Score, which represents the likelihood that an organization will suffer a material cyber incident within the next 12 months.

The index constituents also have a medium or high ISS ESG Corporate Rating and comply with standards related to international norms and controversial weapons.    

EQUITY & FIXED INCOME

The Solactive ISS ESG Screened Index Series provides equity and fixed income investors with a range of ESG benchmark indices based on established global norms on responsible business conduct.

The index series tracks various size and regional segments of the global capital markets, such as Developed Markets, Europe, Japan and the United States.​

FIXED INCOME

Provides fixed income investors with a rules-based and market value-weighted approach for identifying corporate bonds that adhere to market standards on ESG controversy screens. The index series consists of four screened corporate bond indices, based on USD- and EUR-denominated corporate bonds, that are available for investment grade and high yield markets.

ISS ESG developed the underlying framework used to screen and select companies based on their adherence to established global norms, such as the United Nations Global Compact, and exclude companies with significant involvement in a defined set of sectors (e.g. pornography, alcohol and fossil fuel). ​

The indices aim to cover current and future regulation on ESG investments and also include a focus on pertinent climate change issues. ​

In cooperation with Nasdaq, ISS ESG contributes to the OMX Stockholm 30 ESG Responsible Index (OMXS30ESG), which is the ESG responsible version of the OMX Stockholm 30 Index. The OMXS30ESG is based on OMXS30, which consists of the 30 most traded securities on Nasdaq Stockholm, followed by a systematic criteria-based ESG screening. Companies involved in the verified violation of international standards regarding the environment, human rights, labour relations, anti-corruption legislation or the involvement in controversial weapons as well as involvement in business from alcohol, gambling, tobacco, pornography, military equipment, fossil fuels are excluded.

The index has excellent liquidity, which results in an index that is highly suitable as underlying for derivatives products. In addition OMXS30ESG is also constructed to be used for structured products, e.g. warrants, index bonds, exchange traded funds and other non-standardized derivatives products. The composition of the OMXS30ESG index is revised twice a year in start of July and January. The OMXS30ESG Index is a market cap weighted index.

CLIMATE & BIODIVERSITY

The Solactive ISS ESG EU Climate Benchmark Series tracks companies that meet the minimum requirements for climate benchmarks provided by the European Commission’s Technical Expert Group (TEG) on Sustainable Finance. The Solactive ISS ESG Climate Transition Benchmark Index and Solactive ISS ESG Paris-Aligned Benchmark Index* also go beyond what is required by the TEG to allow for more ambitious climate action:

  • Scope 3 emissions are included from inception
  • Carbon intensity reduction exceed the 30% and 50% thresholds required for CTBs and PABs respectively
  • The Solactive ISS ESG PAB Index is fully aligned with a 2°C scenario until 2050, which is consistent with the objectives of the Paris Climate Agreement

The index series currently tracks large- and mid-cap companies across two regional segments: Europe and Developed Markets.

DOWNLOAD RESOURCES

Replay Webinar | Insight & Action: EU Climate and ESG Benchmark Solutions ›

*The indexes will be updated to reflect the final requirements for CTBs and PABs, which will be published by the TEG.

The Solactive ISS ESG Beyond Plastic Waste Index provides passive investors with an opportunity to invest in companies that are proactively focusing on plastic waste reduction.

The Solactive ISS ESG Beyond Plastic Waste Index tracks companies that are listed on stock markets in both Developed and Emerging Markets. The index will only include companies with a market capitalization of at least EUR 200 million and an average daily value traded of at least EUR 100,000 over the past one and six months.

Companies are excluded on the basis of the following criteria:

  • Risks vis-à-vis Established Standards for Responsible Business Conduct
  • Poor ESG Performance
  • Plastics-Related Controversies
  • Obstruction of the United Nations’ Sustainable Development Goals

The STOXX Paris-Aligned Benchmark Indices and the STOXX Climate Transition Benchmark Indices are constructed to go beyond the EU Climate Benchmark (EU PAB and EU CTB) requirements. The indices encourage climate stewardship and corporate engagement in addition to meeting the regulatory requirements.

The ISS STOXX Biodiversity Index Suite is a collaboration between ISS and Qontigo, and aims to help investors align portfolios with biodiversity impact reduction goals. All indices in the suite exclude companies identified as being involved in activities causing harm to biodiversity and include those which minimize negative impacts on biodiversity, as well as those that support the UN’s biodiversity-oriented Sustainable Development Goals (“SDGs”).

After these selection steps, the greenhouse gas (GHG) intensity¹ is assessed relative to its parent index. If the GHG intensity reduction is not at least 30% compared to its parent, companies will be excluded by descending order of intensity until the 30% reduction is met.

In addition to the broad index family, the suite includes a Biodiversity Leaders family comprised of companies deriving at least 25% of their revenue from activities that make a positive net contribution to biodiversity-related SDGs.

These indices leverage data drawn from ISS ESG’s Biodiversity Impact Assessment Tool, as well as other products such as our SDG Impact Rating and Solutions Assessment, Climate Solutions, and norms and activity involvement screening offerings.

¹ Greenhouse gas intensity is defined as the sum of Scope 1, Scope 2 and Scope 3 emissions calculated by ISS ESG over Enterprise Value Including Cash (EVIC).

BEST-IN-CLASS & SDGs

The Solactive ISS Prime Rated ESG Index Series, tracks companies that achieve or exceed ambitious sector-specific performance requirements defined by the ISS ESG Corporate Rating. The index constituents, categorized as “Prime”* by ISS ESG, are defined by ISS based on the ESG risk exposure and impact of their respective business models and value chains (absolute best-in-class approach). In addition, only companies identified by ISS ESG as operating in accordance with market standards on ISS ESG screens are eligible for inclusion. Those standards are based on established norms such as the United Nations Global Compact and the absence of significant involvement in defined sectors.

prime-label_corporate-responsiblity

The index series currently tracks large and midcap companies across five regional segments: Global, Developed Markets, Emerging Markets, U.S. and Europe.

The indices aim to cover current and future regulation on ESG investments and also include a focus on pertinent climate change issues.

DOWNLOAD RESOURCES

Guideline | Solactive ISS ESG Prime Rated ESG Index Series ›

*The ESG Corporate Rating assesses companies’ sustainability performance on an absolute best-in-class basis. An analyst opinion complements each rating to provide a qualitative commentary of key rating results across the three dimensions of sustainability opportunities, sustainability risks and governance. If a company meets the minimum standards in successfully managing sustainability-related risks and opportunities, it is awarded with the Prime status.

The Solactive ISS SDG Aligned Index and the Solactive ISS SDG Leaders Index enable investors to align their investments with the 17 SDGs. The Solactive ISS SDG Aligned Index includes companies with an overall positive impact on the SDGs and no significant negative impact on any of the 17 individual SDGs. The Solactive ISS SDG Leaders Index takes it a step further by only including companies with an overall significant positive impact on the SDGs and no negative impact on any of the 17 individual SDGs. Index constituents are selected based on their ISS ESG SDG Impact Rating, as well as their adherence to established standards for responsible business conduct, including the UN Global Compact and OECD Guidelines.

The constituents of the SDG Index Series are drawn from the Solactive Global Benchmark Series (GBS) of indices.

First listed in 2007, the Global Challenges Index initiated together with Hanover Stock Exchange has shown continuous development and firmly established itself. The index defines sustainability in concrete terms by focusing on future-relevant fields of action, sets stringent and consistent performance criteria for the listed companies and identifies pioneering companies that make active use of the opportunities provided by global change.

7

GLOBAL

CHALLENGES

  1. Combating the causes and consequences of climate change
  2. Securing adequate provision of drinking water
  3. Stopping deforestation and promoting sustainable forest management
  4. Preserving biodiversity
  5. Tackling population development
  6. Combating poverty
  7. Supporting responsible management (governance) structures

Track sector-leading companies with superior economic profit (EVA Margin), medium to high ESG performance, and adherence to key international norms and controversial weapons frameworks.

Learn more about EVA here.

The ISS ESG Freshwater Index Series tracks companies in developed and emerging markets with low or negligible freshwaterrelated risks based on theISS ESG Water Risk Rating.

The index constituents also have a medium or high ISS ESG Corporate Rating and comply with standards related to international norms and controversial weapons.

Trust ESG Index Solutions to help you
fulfill your ESG investment strategy.

});

Start typing and press Enter to search