New ISS Stoxx Solution Helps Investors Tackle Sovereign Climate Risks

ISS Sustainability Solutions, the sustainable investment division of ISS STOXX, has unveiled its new Sovereign Climate Impact Report, expanding its suite of climate-focused tools for institutional investors. This launch addresses growing market demand for sovereign-level climate analysis, complementing ISS’s existing corporate Climate Impact Report.

Designed for banks, insurers, and asset managers, the report provides a comprehensive view of climate transition risks and impacts across sovereign and sub-sovereign portfolios. With over 180 current and forward-looking metrics, the offering delivers a transparent and methodologically rigorous approach to evaluating carbon exposure and climate alignment.

The report is aligned with leading global disclosure frameworks and regulations, including ISSB IFRS S2, TCFD, SFDR, CSRD, and standards in the UK, Australia, and New Zealand. It supports portfolio reporting and climate strategy development through detailed data on carbon footprints, emissions intensities, and transition risk factors such as fossil fuel reliance and energy mix.

Utilizing guidance from the Partnership for Carbon Accounting Financials (PCAF), the report includes emissions quality scoring and alignment assessments with climate scenarios from the Network for Greening the Financial System (NGFS). Features such as heat maps, implied temperature rise metrics, and scenario comparison tools are accessible via ISS’s DataDesk platform or through API integration.

Till Jung, Head of Sustainability Business at ISS STOXX, commented: “We are proud to introduce the Sovereign Climate Impact Report as part of our expanding climate solutions. It reflects our commitment to helping the global investment community manage climate risks and drive sustainable outcomes.”

The launch signals continued innovation from ISS STOXX, with more climate-related tools expected in 2025 to meet evolving investor needs.

Source: issgovernance.com