ISS ESG launches Freshwater indices

ISS ESG has announced the launch of the Freshwater Index Series offering investors the opportunity to address freshwater risk and alignment with ESG standards.

The index focuses on both emerging and developed markets with the methodology using the proprietary ISS ESG Water Risk Rating which is the aggregated score of a company’s Water Risk Exposure Classification and its Water Risk Management. The Water Risk Exposure Classification consists of a company’s individual exposure to freshwater-related risks based on its industry assignment, the geographical footprint of its own operations, and its industry classification regarding supply chain risks. The Water Risk Management assessment is a metric for a company’s current water-related operational performance, taking into account its risk management practices along the value chain, as well as its potential involvement in relevant controversies.

Potential index constituents are drawn from the Solactive GBS Emerging Markets Large & Mid Cap Index and Solactive GBS Developed Markets Large & Mid Cap Index, respectively, and only issuers with a rating of low to negligible risk, i.e. a WRR score of 50 and above, are eligible.

“The Freshwater Index Series is the latest example of ISS ESG bringing to market innovative and differentiated index offerings, drawing on our deep well of industry leading sustainability ratings and research, and high quality extra-financial data,” said Dr. Maximilian Horster, Head of ISS ESG. “As a leader in the responsible investment space, clients can count on ISS ESG to deliver best-in-class solutions and services that are supported by our highly talented team of more than 500 professionals located across global financial centers.”