ISS Sustainability Solutions, the sustainable investment division of ISS STOXX, has unveiled Real Asset Climate Solutions, a new suite of tools designed to assist investors in assessing and mitigating climate-related impacts within their portfolios. This initiative aims to aid institutional investors, banks, insurers, and reinsurers in identifying and managing climate risks while fostering the development of climate-resilient portfolios. The suite utilises ISS STOXX’s toolsets, including Physical Risk, Carbon Footprint, and Scenario Alignment analyses, alongside geospatial asset-level data.
Among the new solutions is the Geospatial Asset Analytics tool, powered by the recently acquired geospatial AI climate risk intelligence company, Sust Global. This tool allows users to evaluate exposure to climate hazards such as floods, wildfires, and heatwaves based on Intergovernmental Panel on Climate Change (IPCC) scenarios, with projections extending to the end of the century. Additionally, it facilitates the assessment of potential structural damage and business disruption at the asset level.
The suite also features Carbon Footprinting, which analyses emissions performance at both the real asset and portfolio levels, projecting Scope 1, 2, and 3 emissions as well as financed emissions. The Scenario Alignment solution aids in assessing how real asset portfolios align with science-based decarbonisation pathways, projecting Scope 1 and 2 emissions and comparing them to detailed benchmarks differentiated by building type and region. This enables investors to evaluate climate risk exposure and alignment with decarbonisation strategies and targets.
Till Jung, Head of the Sustainability Business at ISS STOXX, commented: “Physical and transition risks from climate change are accelerating and are a material financial consideration for investors, banks, and insurers. As a leading provider of climate research, data, and analytics, we are pleased to launch our integrated suite of real asset climate solutions to help financial market participants better identify and mitigate climate risks.”
