ISS ESG, the sustainable investment arm of ISS STOXX, announced today the introduction of a new Industry Average Emission Intensity Data Set as part of the evolution of its suite of Climate Solutions, aimed at helping banks and insurance companies to comply with new mandatory climate reporting requirements, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and European Banking Authority (EBA) Pillar 3 ESG Disclosures.

The new, sector-based data set enables users to estimate emissions for non-listed companies, small and medium enterprises, and other alternative investments. In particular, it enables banks to estimate emissions for large portfolios of companies where data is scarce in support of EBA Pillar 3 reporting. The data set provides industry emission intensity averages which follow PCAF recommendations on a global and regional basis and comprises NACE and GICS industry classifications.

Till Jung, Head of ESG Business at ISS STOXX said:

“Banks continue to face tight implementation deadlines, in tandem with data scarcity, among other challenges, to meet the regulatory requirements set out by the EBA standard. ISS ESG has applied its wealth of experience in measuring physical and transition-related climate risks, regulatory alignment, and much more, to develop a broad and deep dataset, to help streamline banks’ EBA Pillar 3 ESG reporting.”

ISS ESG also highlighted other planned updates to its Climate Solutions designed to help financial institutions respond to a broad spectrum of both mandatory and voluntary climate-related disclosure requirements. These include building on the comprehensive Scenario Alignment issuer-level data set that was released in March 2024, to offer key portfolio-level alignment metrics for up to 22 scenarios provided by leading models (IEA, the NGFS, and the UNEP OECM). These metrics include, among others, portfolio-level Implied Temperature Rise.