Introducing a Novel Climate Data Solution for Sovereign Investment Portfolios by ISS STOXX
In a significant move towards addressing climate-related risks and opportunities in sovereign investments, ISS Sustainability Solutions (part of ISS STOXX) has launched the Sovereign Climate Impact Report in July 2025. The report aims to help institutional investors, banks, and insurers understand, measure, report, and act on climate transition-related risks and impacts in sovereign and sub-sovereign portfolios [1][2][3].
The Sovereign Climate Impact Report is a robust, forward-looking tool that integrates globally recognized standards and sophisticated climate scenarios. It serves as a sovereign-focused counterpart to ISS STOXX’s established corporate Climate Impact Report, providing methodological accuracy and transparency tailored to sovereign portfolios.
The report incorporates more than 180 current and forward-looking metrics covering carbon footprinting, transition analysis, physical and transition climate risks, scenario alignment, and climate policy [1][2][3]. It aligns sovereign and sub-sovereign exposures with the Partnership for Carbon Accounting Financials (PCAF) methodology, including an emissions PCAF quality score for transparency [1][3].
The report supports climate-related disclosure requirements in accordance with leading standards such as the International Sustainability Standards Board (ISSB), Task Force on Climate-related Financial Disclosures (TCFD), Corporate Sustainability Reporting Directive (CSRD), and Sustainable Finance Disclosure Regulation (SFDR), and regional reporting frameworks from the UK, Australia, and New Zealand [1][2][3].
Utilizing climate scenarios from the Network for Greening the Financial System (NGFS), the report provides portfolio scenario alignment to net zero emissions by 2050. It also uses the International Energy Agency (IEA) Net Zero scenario to analyze transition risks, focusing on fossil fuel reserves, fossil fuel dependency, subsidies, energy mix, and power generation composition of sovereign issuers [1][2].
The data and analytics are accessible via ISS’s DataDesk platform and API integration, facilitating flexible use for climate risk management and impact investing [2][3].
Till Jung, Head of Sustainability Business at ISS STOXX, stated that the Sovereign Climate Impact Report is the latest new offering in their comprehensive suite of climate solutions. He emphasised that the report is designed to help investors meet internal and external reporting obligations and supports alignment of sovereign investments to the 1.5°C trajectory and Paris Agreement goals [1][2][3].
ISS Sustainability Solutions plans further innovations in their climate offerings during 2025, although specific new features or enhancements have not been detailed yet [1][2][3].
The Sovereign Climate Impact Report is a product of ISS STOXX, the sustainable investment business of ISS Sustainability Solutions. Till Jung, Head of Sustainability Business at ISS STOXX, is a leading provider of climate research, data, and analytics. The launch of the Sovereign Climate Impact Report continues to expand the range of metrics and analyses available for climate-related risk management in sovereign portfolios.
References: [1] ISS Sustainability Solutions. (2025). ISS Sustainability Solutions Launches Sovereign Climate Impact Report. [Press Release] [2] ISS Sustainability Solutions. (2025). Sovereign Climate Impact Report. [Product Overview] [3] ISS Sustainability Solutions. (2025). Climate Solutions Suite. [Product Suite]
- The Sovereign Climate Impact Report, launched by ISS Sustainability Solutions, is designed to help institutional investors, banks, and insurers understand and manage climate transition-related risks and impacts in sovereign and sub-sovereign portfolios.
- This report incorporates over 180 metrics from carbon footprinting to climate policy, aligning exposures with the Partnership for Carbon Accounting Financials (PCAF) methodology and providing analytics tailored to sovereign portfolios.
- The report supports climate-related disclosure requirements and aligns with leading standards such as the International Sustainability Standards Board (ISSB), Task Force on Climate-related Financial Disclosures (TCFD), Corporate Sustainability Reporting Directive (CSRD), and Sustainable Finance Disclosure Regulation (SFDR), among others.
- ISS Sustainability Solutions plans to further innovate their climate offerings in 2025, continuing to expand the range of metrics and analyses available for climate-related risk management in sovereign portfolios.
