ISS Report Examines Intersection of Alts-ESG Investing

A recent report from Institutional Shareholder Services ESG solutions compiled key trends for 2024 concerning sustainable investing.

The report examined the intersection between alternatives and environmental, social, and governance investing. It noted that with volatility, inflation, interest rates, and geopolitical risks, alts provide investors “with an idiosyncratic opportunity to generate alpha and to actively consider the net zero transition,” referring to reducing carbon emissions to offset what the issuer releases.

Also according to the report, with the continuing need and demand for interoperability and harmonization across regulatory frameworks and asset classes, investors in alts can actively direct long-term capital toward a broad range of ESG-related projects, such as low-carbon infrastructure, retrofitting real estate, transport electrification, natural capital preservation, and others.

ESG solutions enable investors to develop and integrate responsible investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions. ESG solutions cover corporate and country ESG research and ratings enabling its clients to identify material social and environmental risks and opportunities.

Founded in 1985, Institutional Shareholder Services group of companies empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS, which is majority owned by Deutsche Börse Group, along with ISS management, is a provider of corporate governance and responsible investment solutions, market intelligence, fund services, and events and editorial content for institutional investors and corporations around the world. ISS’ 3,000 employees operate worldwide across 25 global locations in 15 countries.

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