Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

ISS has launched a new specialty Climate Voting Policy. Other specialty voting policies maintained by ISS include SRI, Sustainability, Faith-Based, Taft-Hartley, and Public Fund policies.

According to ISS, five key topical pillars undergird the Climate Voting Policy:

  • Sector-specific materiality using ISS’ Carbon Risk Classification (CRR).
  • Disclosure signals based on climate disclosure indicators aligned with TCFD disclosure requirements.
  • Norms violations, based on any violations of globally recognized climate norms.
  • Current climate performance signals, such as greenhouse gas (GHG) emission intensity, following GHG Protocol’s carbon accounting methodology for Scope 1-3 GHG emissions.
  • Future climate performance signals, drawing from ISS’ Carbon Risk Ratings (CRR).

The Climate Voting Policy coverage universe will initially span approximately 3700 companies globally, across more than 20 capital market main indices, including: the U.S. (S&P 500 & Russell 1000); U.K. (FTSE 100); Germany (DAX 30); Australia (ASX 200); France (CAC 40); OMX Copenhagen 20; OMX Stockholm 30; and the STOXX Europe 600.  ISS plans to expand the coverage universe over time.

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