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ISS Launches E&S QualityScore

By Randi Morrison posted 02-09-2018 08:01 AM

  
ISS's newly-launched Environmental & Social QualityScore aims to measure the quality (depth and extent) of companies' E&S disclosures gathered from company publications including SEC filings, website disclosures, and sustainability reports, relative to industry-specific peers and risk-based standards & recommendations from groups such as the GRI, SASB, and the Task Force on Climate-related Financial Disclosures. Companies' top-level E&S score in addition to their Corporate Governance QualityScore will be included in ISS’s proxy research reports later this month.

ISS's release elaborates:
Underpinning E&S QualityScore are more than 380 unique environmental and social factors under analysis of which at least 240 apply to each industry group. Like its governance counterpart, E&S QualityScore provides a score for each company in its coverage universe that measures the company’s level of environmental and social governance disclosure risk, both overall and within eight broad categories. Broad topical areas under the E&S QualityScore methodology for environmental disclosures include: Management of Environmental Risks and Opportunities; Carbon and Climate; Natural Resources; and Waste and Toxicity. Meanwhile, Human Rights; Labor, Health, and Safety; Stakeholder and Society; and Product Safety, Quality, and Brand comprise topical areas for social-related disclosures.
The initial launch covers 1,500 companies in the perceived higher E&S risk industries, e.g., Energy, Materials, Capital Goods, Transportation, Automobiles & Components, and Consumer Durables & Apparel. An additional 3,500 companies spanning 18 industries will reportedly be added later this year.

See also the corresponding FAQs and Key Issues. We will be posting additional information and resources on our Proxy Advisors page here. We also have an abundance of sustainability resources here.



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