Press Release

ISS STOXX Research Institute Launches Flagship Study on Climate and Nature Risk Exposures in Investment Portfolios

NEW YORK (May 15, 2026)—ISS STOXX, a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities and risks, today announced the publication of a new flagship report from the ISS STOXX Research Institute: Resilience at Risk: Understanding Climate and Nature Risk Exposures in Investment Portfolios.

The report was developed over 12 months and informed by extensive primary and secondary research, with over 20 interviews with global investors and market participants. It introduces two case studies leveraging ISS STOXX’s Biodiversity Impact Assessment Tool (BIAT) and ISS STOXX’s Geospatial database and Climate Physical Risk Solution.

Key Findings

Key findings from the report include the following:

  • Nature can be financially material in investment portfolios (Case Study 1). In a test portfolio, more than 55% of portfolio revenue[1] is reliant on provisioning ecosystem services such as freshwater and raw materials.
  • Biodiversity impacts tend to be highly concentrated upstream (Case Study 1). In the same test portfolio, over 99% of biodiversity impact stems from land transformation and land occupation—highlighting upstream supply‑chain risks in the cultivation of commodities such as palm oil, timber, and rubber.
  • Water is a key climate‑nature nexus risk (Case Study 2). An asset‑level analysis of 306 farm assets[2] shows water stress, flooding, and wildfires as the primary climate‑related hazards driving financial risk. Of note, water stress risk intensifies over time—under a high‑emissions scenario, farm assets facing medium water‑stress exposure increase from 11% in 2030 to 57% by 2050, with high‑risk assets rising sharply.
  • Integrated climate and nature analysis supports a more comprehensive risk assessment. Assessing climate and nature risks in silos materially understates portfolio exposure and obscures emerging non‑linear risks. Risk analysis can be strengthened by integrating climate hazards, nature dependencies, and ecosystem impacts into a more holistic, forward‑looking risk framework. Such an approach can enable investors to better identify vulnerabilities, stress‑test portfolios, and allocate capital toward assets and business models that can perform in a more volatile and resource‑constrained world.
  • Further innovation is needed to better calibrate nature-related risks.
    Concepts such as transmission channel analysis and landscape‑level risk assessment could help evolve valuation and risk management approaches.

“Climate and nature risks are no longer abstract or long‑dated—they are already shaping financial outcomes,” said Mirtha Kastrapeli, Managing Director and Global Head of the ISS STOXX Research Institute. “Our research shows that by including nature-related data in investment analysis, investors can broaden their view and avoid missing a critical part of the risk picture. Nature loss can potentially amplify climate impacts, disrupt supply chains, and erode portfolio resilience, potentially much faster than expected. Integrating climate and nature analytics is essential for understanding long‑term value and building portfolios that are fit for an increasingly uncertain future.”

About ISS STOXX Research Institute
The ISS STOXX Research Institute draws on unique and proprietary data, paired with advanced concepts and objective analysis, to deliver actionable insights that help capital market participants navigate risks and identify opportunities.

About ISS STOXX 
ISS STOXX provides actionable insights through its comprehensive product offerings, proven expertise, and high-quality data that capital market participants around the world can use to inform their decision-making. Across indices, investment stewardship, corporate governance, sustainability, and fund intelligence, institutional investors and companies rely on us to help them manage investments, strengthen their governance practices, and bring new products to market. ISS STOXX, which is owned by Deutsche Börse Group, employs approximately 4,000 professionals operating across 34 locations in 20 countries. ISS STOXX’s clients include many of the world’s leading institutional investors and corporate issuers who turn to ISS STOXX for its objective and varied offerings. 

[1] Data as of March 2026, number of issuers = 26. 
  Source: ISS STOXX Biodiversity Impact Assessment Tool (BIAT)

[2] Data as of March 2026. 
  Source: ISS STOXX Geospatial Asset Analytics
 

Media Contact

Sarah Ball, Communications
press@iss-stoxx.com

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