Technology & Data

ISS ESG Boosts Biodiversity Impact Solution

Investors can now compare their portfolios’ biodiversity risks and impacts against a benchmark using an enhancement to ISS ESG’s Biodiversity Impact Assessment Tool (BIAT). The BIAT portfolio report lets users view the breakdown of impact per sector, country and biodiversity driver, and enables to examine the biodiversity-impact-attribution-to-sector allocation versus issuer selection. Investors can also use the new tool to view the biodiversity impact of the top and bottom five holdings in their portfolios, observe economic activities with the strongest effects, assess dependencies on ecosystem services, and evaluate their footprint based on a set of additional disclosures that follow the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD). BIAT’s coverage has expanded to include more than 17,000 companies, with a dataset that comprising at least 650 individual factors. ISS ESG, the sustainable investment arm of the ISS STOXX, launched the tool in 2022 to help investors understand and assess biodiversity risks based on a lifecycle impact assessment (LCIA) methodology. The tool enables to quantify biodiversity loss drivers on a regional scale, and presents results across two footprint metrics: potentially disappeared fraction of species (PDF), and mean species abundance (MSA). ISS STOXX, owned by Deutsche Boerse, provides research and technology solutions to help capital market participants identify investment opportunities, detect portfolio company risks and meet regulatory requirements.

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