• ISS STOXX introduces a comprehensive suite of climate analytics tools integrating geospatial AI, emissions modeling, and scenario alignment.
• The platform enables investors, banks, and insurers to assess exposure to physical and transition risks across real-asset portfolios.
• Powered by Sust Global’s data infrastructure, the suite aligns with IPCC scenarios to model hazards and temperature rise projections through 2100.
A Holistic Climate Toolkit for Institutional Investors
ISS STOXX, the sustainable investment arm of Institutional Shareholder Services (ISS), has launched a new suite of Real Asset Climate Solutions to help institutional investors quantify and mitigate the growing financial risks of climate change.
The product suite combines physical risk, carbon footprint, and scenario alignment analytics into an integrated system designed for investors, banks, insurers, and reinsurers. Users can access the tools via secure file transfer, API, or a web-based analytics dashboard, enabling seamless integration into existing risk and portfolio management systems.
Till Jung, Head of Sustainability Business at ISS STOXX, said the launch responds to accelerating climate-related risks now driving financial exposure. “Physical and transition risks from climate change are accelerating and are a material financial consideration for investors, banks, and insurers,” he said. “We are pleased to launch our integrated suite of Real Asset Climate Solutions to help financial market participants better identify and mitigate climate risks.”
Data-Driven Climate Risk Intelligence
The launch is bolstered by the company’s acquisition of Sust Global, a data analytics firm specializing in geospatial AI models for physical climate risk. The integration allows investors to analyze real-asset exposure to extreme weather and environmental hazards—including floods, sea-level rise, droughts, cyclones, heatwaves, and wildfires—based on scenarios from the Intergovernmental Panel on Climate Change (IPCC), such as SSP2–4.5 and SSP5–8.5.
The models extend to 2100, providing forward-looking assessments of physical risk intensity, probability, and potential loss. By merging hazard, exposure, and vulnerability data, the platform enables users to estimate potential structural damage and business interruption across global real-asset portfolios.
These analytics are powered by the proprietary ISS STOXX Geospatial Asset Database, a verified dataset of site-level intelligence on assets owned or operated by listed issuers. The database allows investors to assess real-time and projected exposure to physical climate hazards across both direct asset holdings and underlying securities.
Carbon and Transition Risk Assessment
Beyond physical risk, the platform incorporates a Carbon Footprinting module that calculates Scope 1, 2, and 3 emissions at both the asset and portfolio level. Using client-supplied data, the model quantifies emissions exposure, financed emissions, and Weighted Average Carbon Intensity (WACI)—metrics increasingly required under emerging disclosure frameworks such as the EU’s CSRD and the ISSB’s climate standards.
The Scenario Alignment tool provides a forward-looking assessment of how portfolios align with global decarbonization pathways. It benchmarks asset-level and regional emissions trajectories against science-based targets, showing whether holdings “overshoot” or “undershoot” 1.5°C and 2°C pathways. The data is then expressed as an Implied Temperature Rise metric—an increasingly recognized indicator for asset managers seeking to align portfolios with net-zero commitments.
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Policy and Market Relevance
The launch comes amid heightened regulatory and investor focus on climate risk transparency. Financial institutions across Europe, North America, and Asia are now required to integrate scenario analysis and physical risk assessments into their governance and reporting, under frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), the European Banking Authority’s ESG guidelines, and the U.S. SEC’s forthcoming climate disclosure rule.
By embedding spatial climate data with emissions analytics, ISS STOXX’s solution positions itself as a tool for both compliance and strategic risk management. The ability to quantify climate-driven value at risk, stress-test portfolios, and assess regional exposure gives investors actionable intelligence to inform underwriting, due diligence, and stewardship activities.
Strategic Implications for Financial Leaders
For asset owners and managers, the suite provides a scalable pathway to embed climate resilience across investment decision-making. It bridges the gap between portfolio-level disclosure requirements and site-specific physical data—an area where most institutions still lack robust visibility.
For banks and insurers, it enables a unified approach to integrating both transition and physical risks into capital allocation models and underwriting practices. As real assets—from infrastructure to real estate—face increasing exposure to temperature and weather extremes, the ability to model risk down to the property level is becoming a financial imperative.
Global Outlook
ISS STOXX’s Real Asset Climate Solutions arrive at a time when investors are grappling with record insured losses, climate-related asset revaluations, and mounting regulatory demands. As the physical and financial impacts of climate change become increasingly intertwined, the tools’ capacity to translate scientific data into actionable financial metrics may help investors move from reactive disclosure to proactive portfolio management.
By offering forward-looking, asset-specific insights, ISS STOXX aims to position itself at the nexus of climate science, financial data, and regulatory compliance—helping institutional clients build climate-resilient portfolios that meet both fiduciary and sustainability obligations.
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