ISS Sustainability Solutions, the sustainable investment business of ISS STOXX, launched its integrated suite of Real Asset Climate Solutions, to help investors understand and mitigate the potential impacts of climate change on their portfolios. The holistic suite harnesses ISS STOXX’s range of Physical Risk, Carbon Footprint and Scenario Alignment analyses—alongside geospatial asset-level data—to support effective risk identification and management, and the development of climate resilient portfolios.

The solutions are designed to support institutional investors, banks, insurers, and reinsurers across a wide range of use cases including risk management, regulatory compliance and reporting, stewardship engagement, investment due diligence, and underwriting. The solutions are available via SFTP, API, or an intuitive web-based analytics dashboard, providing seamless integration into investors’ existing workflows and tools.

Powered by the recent Sust Global acquisition, the ISS STOXX Geospatial Asset Analytics offering helps investors identify and quantify physical climate-related risks to real assets using advanced geospatial-AI climate models. Through the solution, investors can analyze their exposure to hazards—including floods, sea level rise, wildfires, heatwaves, cyclones, and drought—based on the Intergovernmental Panel on Climate Change (IPCC) scenarios (SSP2–4.5 and SSP5–8.5), with global coverage and annual projections through 2100. Additionally, investors can also assess potential structural damage and business interruption at the real asset level by integrating hazard probability, exposure, and vulnerability data.

The tool supports user-provided portfolios of real-asset locations, as well as portfolios of public equity and debt issuers, powered by the ISS STOXX Geospatial Asset Database, a proprietary database of verified geolocation and site-level intelligence to support precise identification of physical risk exposure of real assets owned or operated by issuers.

The product suite also offers Carbon Footprinting analysis of emissions performance at the real asset and portfolio level. Utilizing user-provided data, the model projects Scope 1, 2, and 3 emissions, including Emissions Exposure and Weighted Average Carbon Intensity, as well as financed emissions, to help assess carbon impact at the portfolio level.

It further provides a forward-looking framework under the Scenario Alignment solution to help assess how real asset portfolios are positioned against science-based decarbonization pathways. By projecting Scope 1 and 2 emissions and comparing them to granular benchmarks, differentiated by building type and region, the assessment provides a precise view of alignment with decarbonization targets. Results for emissions are expressed as ‘overshoot’ or ‘undershoot’ and translated into an Implied Temperature Rise metric, available at both the individual asset and portfolio level, enabling investors to evaluate climate risk exposure and alignment with decarbonization strategies and targets.

Till Jung, Head of Sustainability Business at ISS STOXX, said: “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.”

Source: ISS STOXX