ISS STOXX expands sustainability ratings and portfolio analytics for investors

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ISS STOXX sustainability ratings

Highlights

ISS STOXX expands its sustainability ratings suite to cover issuers, funds, and debt markets, assigning corporate scores from D- to A+ based on international standards.
The firm's QualityScores analyze environmental, social, and governance disclosure risks for 8,000 companies across 25 industry groups, and provide municipal bond analytics across all 50 U.S. states.
ISS STOXX now offers custom sustainability ratings for institutional investors, with full methodology transparency as a key feature of its analytics platform.

Ratings suite covers issuers, funds and debt markets

As outlined by ISS STOXX, citing ISS, the firm offers a range of sustainability ratings and rankings aimed at helping investors identify risks, assess long-term value and capture new opportunities. The company says its corporate rating evaluates businesses across their value chain and assigns a sustainability score from D- to A+ using an absolute best-in-class approach guided by established international standards.

Its sovereign rating assesses major sovereign bond issuers against more than 100 social, environmental and governance criteria, including issuers such as the European Union, OECD countries and BRICS members. ISS STOXX also says its fund rating uses its corporate and sovereign assessments to benchmark global equity and bond funds, while its sustainability bond rating reviews labeled debt across regions and industries to measure climate impact, risk exposure and compliance with international standards.

The company adds that it makes its methodologies publicly available, framing transparency as a central part of its approach to evaluating sustainability performance.

QualityScores target disclosure and governance risks

Beyond headline ratings, ISS STOXX says its QualityScores are intended to give investors deeper visibility into sustainability risks and opportunities across companies and municipal bonds. Its environmental and social disclosure QualityScore reviews the public reports of 8,000 companies across 25 industry groups to identify key disclosures, omissions and other indicators of reporting quality.

The governance QualityScore focuses on four areas, audit and risk oversight, board structure, compensation and shareholder rights, while the muni QualityScore provides sustainability rankings, scores and underlying data for municipal bonds across all 50 U.S. states at the GEO.id level and for issuers at the CUSIP6 level. ISS STOXX also says it can build custom ratings based on an investor's own methodology, extending its product offering to institutions seeking tailored sustainability scoring models.

As we previously wrote, Fitch’s enhanced muni review showed uneven U.S. municipal credit conditions via upgrades, downgrades and outlook changes.

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