ISS’s benchmark policy is falling behind investors’ expectations on climate. The policy guidelines are drafted in a way that does not lead ISS to consistently make proxy voting recommendations that hold companies accountable for underperformance on climate and the company climate assessments provided in the company reports focus more on evaluating the quality of disclosure than on assessing the company’s decarbonization activities.  

Put simply, as investors are increasingly expecting companies to implement meaningful climate mitigation strategies aligned with a 1.5°C pathway, ISS’ premier proxy voting policy should reflect those changes. 

Already, investors representing over $1.75 trillion in assets under management and under advisement have signed onto a letter asking ISS to make these changes.