ISS ESG | REGULATORY SOLUTIONS
EU TAXONOMY ALIGNMENT SOLUTION
Quantify the share of your taxonomy-aligned investments.
Are you prepared?
The European Union’s Taxonomy brings new mandatory reporting requirements that represent a challenge for financial markets by requiring significant action from participants.
Comply with incoming disclosure obligations for your products and portfolios sold in the EU
ISS ESG’s EU Taxonomy Alignment Solution enables financial market participants to identify the level of alignment of their investments and financial products with defined taxonomy activities. The solution quantifies respective revenues, capital expenditure, and operational expenditure in order to comply with the upcoming disclosure obligations.
ISS ESG Provides EU Taxonomy Data Under Eurosystem Central Banks Framework Agreement
ISS ESG announced in August 2022 it will provide EU Taxonomy data to augment the climate-related data already being provided under a framework agreement developed by the Eurosystem central banks. By way of background the Eurosystem central banks gather 19 national central banks of the euro area countries as well as the European Central Bank; Deutsche Bundesbank being the Lead Central Bank for the procurement process.
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PORTFOLIO REPORTING – KEY FEATURES
A single report at the click of a button, designed to support
EU Taxonomy reporting obligations alongside additional use cases
Meet Disclosure Obligations
ISS ESG EU Taxonomy solution incorporates directly reported data to meet entity-level reporting requirements under Article 8 of the EU Taxonomy Regulation, as well as modeled data for companies that do not report which can be used during the investment decision-making process.
Analysis Per Objective, Activity Type And Issuer Type
View overall taxonomy alignment, as well as specific views for climate change mitigation and climate change adaptation, with more to come as and when the remaining objectives have their criteria fully defined. Information on involvement in and alignment with EU Taxonomy eligible activities is provided per Objective (Adaptation, Mitigation), Activity Type (Green, Enabling, Transition, including/excluding Nuclear/Gas) and Issuer Type (including/excluding sovereigns).
Intuitive Data Visualisation
Easily interpretable charts that can be used for website, pre-contractual and periodic disclosures such as key investor information documents and prospectuses (KIID).
Raw Values For Regulatory Compliance
Data has also been included in tabular format to allow the relevant numbers to be easily visible. This is particularly important when the report is being utilized to meet regulatory obligations.
For Companies That Do Not Report, Our Model Follows a 5-step Process to
Assess the Taxonomy Alignment of Company Activities
Assess the EU Taxonomy alignment of company activities
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Understand the Importance of the New EU Taxonomy Regulation
In this episode of the ISS ESG Foreword podcast series, light is shed on the new regulatory requirements and it is explained how they can affect you and your business. Listen in and learn more about ISS ESG’s dedicated solution and our approach taken to assist with compliance.
IDENTIFY YOUR ELIGIBLE TAXONOMY ACTIVITIES
ISS ESG’s EU Taxonomy Alignment Solution assists in the analysis of your investments against eligible taxonomy activities, which substantially contribute to one of the Taxonomy objectives and do not significantly harm any of the other taxonomy objective.
The solution focuses on the climate-related objectives initially, included in the first phase of the staggered regulation.
- Climate change mitigation
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
Analysis of 102 taxonomy-aligned activities including:
- Improved forest management
- Livestock production
- Manufacture of renewable energy technologies
- Manufacture of cement
- Electricity generation from wind power
- Manufacture of aluminium
- Anaerobic digestion of sewage sludge
- Composting of bio-waste
- Freight rail transport
A NFRD indicator flag is also included in order to assist clients with their disclosure obligations.
Rely on our comprehensive & dedicated taxonomy solution.
For companies that do not report: Eligibility coverage of
60,000 issuers
Overall coverage of
8,000 issuers
For companies that directly report Taxonomy data: coverage of approximately
2,000 issuers
Screening based on approx.
1,300 factors
Data as of November 2022. All figures are approximate.
BENEFIT FROM SPECIFIC TAXONOMY DATA TO REPORT ALIGNMENT
- Customize your reporting and include ‘aligned’ or ‘likely aligned’ capital expenditure and revenues on specific activities and/or assessment steps.
- Measure and report on the taxonomy compliance of investment funds
- Report on overall taxonomy alignment at portfolio level
- Engage with investee companies
- Select holdings and design investment products
- Express investment preferences
Leveraging over 25 years of ESG Research & Rating expertise
ISS ESG’s proprietary research and rating methodology has been consistently updated and developed across more than 25 years, aiming to deliver high-quality, material and forward looking ESG data on a company’s sustainability performances.
This methodology is used to support our EU Taxonomy solution, sharing a similar assessment approach for an economic activity’s contribution to sustainable development. Both consider the impacts associated with an activity holistically along the respective value chain and are highly sector-specific.
ACCESS DETAILED AND UP-TO-DATE RESEARCH DATA VIA ISS DATADESK
Trust ISS ESG Taxonomy Solution to help you meet the new EU reporting requirements.
