ISS ESG Responsible Investment Policy Development Service

A responsible investment mission statement and policy is the foundation of a client’s investment philosophy and can address internal compliance and general business development needs. In addition, an RI policy helps to meet local regulatory requirements and address global governance standards, such as the US-backed Principles for Responsible Investment (“PRI”). The goal of developing a responsible investment mission statement or policy is for investors to have a basis for their portfolio monitoring, company research, engagement, voting, reporting, and communication. ISS ESG works closely with clients to identify their performance objectives, current capabilities, and tools needed to integrate responsible investment policies throughout the investment process, considering the following: • Ethical considerations, including environmental and social impacts • Investor philosophy • Business development and client needs • Competitive benchmarking • Risk management concerns • Regulatory requirements • Corporate governance practices • Regional and global market expectations Policy development typically involves the following steps: 1. Initial meeting with key staff to assess current processes and capabilities, and confirm requirements and ambitions 2. Review of relevant published and internal documents 3. Consultation with relevant stakeholders 4. Drafting of policy, guidelines and internal rules 5. Workshop session with key staff to present draft policy 6. Refining of policy, guidelines and internal rules 7. Presentation to investment committee 8. Integration of feedback, if any 9. Submission of final policy, guidelines and internal rules ISS ESG will consult with the client’s management, investment, business development, and compliance teams to define the vision and scope of the client's principles, policy and strategy. ISS ESG will also consider various regulatory requirements, industry and market best practices. As a leader in responsible investment, ISS ESG participates in many best practice industry networks to keep abreast of and actively engage in market developments. ISS ESG maintains an active and structured dialogue with responsible investment stakeholders, from governmental bodies, to inter-governmental agencies, industry associations, academic institutions to non-governmental organizations. ISS ESG participates in relevant initiatives and discussions globally. Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms.