Research & Advisory

Climate & Nature Ratings

Our climate and nature-related ratings cover every stage of the investment process, from portfolio construction and investment stewardship to risk management and reporting.

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Carbon Risk Rating

The Carbon Risk Rating gives you unique insights into how companies are managing future challenges related to climate risk, and to what extent they’re seizing opportunities related to the transition to a low-carbon economy.

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Our Carbon Risk Rating gives you a holistic, forward-looking view of a company’s exposure to climate-related transition risks and how those risks are managed. First, each company is assigned a baseline Carbon Risk Classification score that reflects its specific carbon exposure. They are then given a separate Carbon Performance Score that assesses the effectiveness of their efforts to manage risk and seize related opportunities.

As one component of the Carbon Risk Rating, the Carbon Risk Classification looks at a company’s industry and business activities to evaluate its exposure to climate-related transition risks. By evaluating the company’s emission intensity across its value chain within a specific subsector, we can provide a clear, comparable indicator of baseline risk.

The Carbon Performance Score is part of the Carbon Risk Rating. It’s a forward-looking metric that evaluates how effectively a company is managing its carbon-related risks, while seizing climate-related transition opportunities. The score draws from a combination of cross-industry and sector-specific indicators—both quantitative and qualitative—sourced from our Corporate Rating.

Water Risk Rating

Our Water Risk Rating helps you understand and address potential freshwater-related risks in your investment portfolio.

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  • Address Water Risks

    Using 11 distinct data points, we give you a holistic and granular assessment of a company’s exposure to freshwater-related risks.

  • Complementary Pillars

    The score is derived by evaluating two complementary pillars: water risk exposure classification and water risk management.

  • Granular Scale

    We assign companies a score that ranges from 0 (high unaddressed risks) to 100 (negligible/well-managed risks).

  • Backed by Data

    Supported by our Corporate Rating, Norm-Based Research, and SDG Solutions Assessment, as well as data on baseline water stress from the World Resources Institute (WRI) Aqueduct Water Risk Atlas.

  • Use Cases

    A valuable assessment tool for many scenarios, including: risk assessment and compliance, benchmarking, product development, and collaborative engagement.

Sustainability, Impact, Climate & Nature and Custom Ratings, Governance and Financial Scores and Screening & Controversies are provided by Institutional Shareholder Services Inc., an investment adviser registered under the U.S. Investment Advisers Act of 1940.

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