ISS Scores Companies on Environmental, Social Disclosures

Proxy adviser Institutional Shareholder Services Inc. is getting into the business of rating corporate reporting on issues such as climate change and human rights.

The firm, which already looks at the quality of company disclosures on executive pay and other governance issues, said Feb. 5 it’s now scoring companies on what they do, and don’t, disclose on environmental and social topics.

Its move into environmental, social, and governance (ESG) ratings comes after a string of ISS acquisitions in the space, including that of sustainable investment adviser Ethix and most recently South Pole Group’s carbon data and analytics.

Marija Kramer, who ...