ISS ESG fund ratings include both relative and absolute ratings.

ISS ESG Fund Rating Stars

Every fund in the ESG Fund Rating coverage receives an overall relative 1- to 5-star rating. Funds that perform best from an ESG perspective relative to peers receive 5 stars, and funds on the bottom end of the scale receive one star. It is important to note that the Stars rating is a relative rating signal that compares the fund’s performance against its peers, with the peer set defined by the Lipper Global Benchmark class.                                                                                                                                                                                                                             

ISS ESG Performance Score

The ISS ESG score ranges from 0 to 100, with 100 representing "very good". The ISS ESG performance score represents an absolute ESG rating of the fund. For the calculation, the individual scores of companies in the areas of environmental, social and corporate governance are combined and aggregated at the fund level.

ISS ESG Prime Status

The ISS ESG Prime Status provides an easy way to identify industry leaders which are well-equipped to mitigate the most prevalent ESG risks and to seize opportunities related to sustainable development and associated societal transformations. In addition, the Decile Rank and the ESG Performance Score allow for peer comparisons both within and across industries. Prime status is attributed to companies that fulfill ambitious performance requirements regarding the most material topics, taking into account their individual risk exposure.

A comparison with ESG rating approaches of other providers can be found here or here. For further questions regarding the rating methods, please contact ISS ESG directly.