ISS STOXX Launches Sovereign Climate Impact Report

NEW YORK (July 10, 2025) – ISS Sustainability Solutions, the sustainable investment business of ISS STOXX, today launched a new Sovereign Climate Impact Report, the latest update to its evolving suite of Climate Solutions. The new offering has been developed to meet market demand for a sovereign focused equivalent to the Climate Impact Report which covers corporate issuers.

The Sovereign Climate Impact Report is a differentiated offering in the market in terms of methodological accuracy, transparency, and data comprehensiveness, with more than 180 current and forward-looking metrics. It is also a flexible, decision-useful solution that can be used to address a wide range of use cases for institutional investors, banks, and insurers concerning climate risk mitigation and impact investing in the sovereign space.

The new offering enables investors to understand, measure, report, and act on climate transition-related risks and impacts of their sovereign portfolios. It aligns sovereign and sub-sovereign exposures to the latest Partnership for Carbon Accounting Financials (PCAF) methodology and guidance. The new solution supports investors in fulfilling internal and external reporting climate-related disclosure requirements, including International Sustainability Standards Board (ISSB) IFRS S2 and the Task Force on Climate-related Financial Disclosures (TCFD), regulations such as Sustainable Finance Disclosure Regulation (SDFR) and the Corporate Sustainability Reporting Directive (CSRD), plus FCA UK, Australian and Aotearoa New Zealand reporting standards.

The new Sovereign Climate Impact Report encompasses carbon footprinting, transition analysis, scenario alignment and climate policy, all available at the click of a button on our DataDesk platform. Underlying data factors can also be provided via data feed or API.

The new report includes carbon footprint data for sovereign and sub-sovereign portfolios, including Land Use, Land-Use Change, and Forestry (LULUCF) emissions and emissions intensities. An emissions PCAF quality score is presented for enhanced transparency. TCFD/ISSB metrics feature weighted average carbon intensity by scope. The report’s transition risk analysis focuses on the energetic profile of sovereigns including fossil fuel reserves, fossil fuels dependency, subsidies and their energy mix and power generation composition which are compared to the Net Zero scenario provided by the International Energy Agency (IEA). Sovereign portfolios’ scenario alignment to Net Zero emissions by 2050 is assessed using climate scenarios provided by the Network for Greening the Financial System (NGFS), using Current Policies as a base line. The analysis at portfolio level contains a heat map, a portfolio implied temperature rise plus cumulative alignment metrics.

Till Jung, Head of Sustainability Business at ISS STOXX said: “As a leading provider of climate research, data and analytics, and a trusted partner to the global institutional investor community, we are pleased to launch the Sovereign Climate Impact Report, the latest new offering in our comprehensive suite of climate solutions, with further innovations planned in 2025.”

About ISS Sustainability Solutions
ISS Sustainability Solutions enables investors to develop and integrate responsible investing policies and practices, engage on sustainable investment issues, and monitor portfolio company practices through screening solutions. It also provides data, analytics, and advisory services to help financial market participants understand, measure, and act on sustainability-related risks across all asset classes. In addition, its solutions include corporate and country research and ratings enabling its clients to identify potential material sustainability risks and opportunities. For more information, please visit us at: www.iss-esg.com

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.