Institutional Shareholder Services Inc. announced Tuesday the launch of a series of indexes for investors to identify and select top ESG performers based on ISS ESG ratings.
The Solactive ISS ESG Prime Index Series from ISS' responsible investment arm, ISS ESG, tracks companies fulfilling absolute ESG performance requirements, making them eligible to be categorized as "prime." The sector-specific performance requirements defined by ISS are based on ESG risk exposure and impact of their respective business models. The standards are based on established norms such as the United Nations Global Compact and Paris accord climate goals, as well as absence of significant involvement in defined sectors, ISS said.
The initial five indexes of the series cover discrete market segments: global, developed markets, emerging markets, U.S. and Europe.
ISS ESG Managing Director Marija Kramer said in a statement that the index series will enable investors to identify best-in-class ESG performers "with both precision and efficiency."