ISS ESG Energy & Extractives Screening Globally (over 230 factors)

As the topic of climate change is gaining momentum in the financial industry, investors require access to high-quality, reliable and relevant data to support the transition to a low-carbon economy. ISS ESG's Energy & Extractives Screening provides detailed analyses on companies’ involvement in the extraction of fossil fuels, and the generation of power from fossil fuel, nuclear and renewable sources for a comprehensive climate risk assessment. ISS ESG’s comprehensive Energy & Extractives Screening assess companies’ exposure to oil, gas, unconventional drilling methods, and renewable energy. The screening includes approximately 230 data factors covering the following topics: • Fossil fuels: assessing exposure to oil, gas, thermal and metallurgic coal. • Coal mining: identifying issuers engaged in coal mining production or the provision of services related to coal mining. The screen also breaks out revenues from metallurgical and thermal coal. • Power generation: includes capacity, output, and revenues by fuel type. • Renewable energy generation: includes solar, wind, biomass, geothermal, and others. • Unconventional drilling methods: such as oil sands, arctic drilling, shale oil and hydraulic fracturing. • Nuclear power: identifying issuers engaged in the production, distribution or provision of services related to nuclear power. • Carbon reserves: includes proven, probable, possible, and/or recoverable coal, oil, natural gas, natural gas liquids and bitumen reserves. The screen also identifies the top 200 global corporations with the most coal or oil and gas reserves. Energy & Extractives Screening data covers both direct operations as well as operations that are ≥20% owned by the company, e.g. subsidiaries, joint ventures, associates and affiliates. Revenue shares are attributed in proportion to ownership. Companies within risk sectors are actively screened to determine the involvement in the energy & extractives industry. Screening data and estimates are based on the most recent annual report and/or financial filings, published company information, expert sources and non-governmental organizations reports. Further, ISS ESG conducts a fact-finding dialogue with the company when further clarification is needed. Third-party information such as government sources, industry databases and reputable newspapers are cross-referenced as supplemental to company disclosures. To ensure transparency, ISS ESG clearly indicates when revenue data is company disclosed and when it is estimated/calculated. Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms.