Institutional Shareholder Services Announces Acquisition of Australia-based CAER
Deal Strengthens ISS’ Responsible Investment Capabilities in Australasia
SYDNEY (February 19, 2019) — Institutional Shareholder Services Inc. (ISS), the leading provider of end-to-end responsible investment and governance solutions to the global financial community, today announced it has acquired CAER, a pioneer in the provision of independent research on the environmental, social, governance (ESG) performance of Australasian companies.
Based in Canberra, CAER has been working with institutional investors seeking to monitor portfolio companies’ ESG policies, practices, and disclosures since 2000. CAER’s comprehensive experience utilizing ESG data and assessments, ratings, and screening capabilities are valued by a range of institutions across Australia and New Zealand. Clients also leverage the CAER team’s skill set to assist with the monitoring of ESG controversies; analyze companies and portfolios with specific ESG risks such as climate change; support active ownership strategies; and develop ESG-focused indices.
Clients of CAER will continue to receive deep, local expertise with added global support drawing on the wider ISS organization and ISS ESG, the responsible investment arm of ISS.
“This acquisition underscores ISS’ commitment to the Australian, New Zealand, and wider Asia-Pacific market where we see growing interest in monitoring portfolio companies for a wide range of ESG risks and opportunities,” said ISS ESG Managing Director Marija Kramer. “We are pleased to welcome the entire CAER team to the ISS ESG family.”
The acquisition of CAER will more than double ISS’ headcount in the market to include eight research analysts covering responsible investment and corporate governance across the region.
“With the addition of CAER, ISS will combine superior market coverage with local insight and serve clients as the only local provider to offer both ESG and governance workflow solutions,” noted Jeff Brown, ISS country head for Australia and New Zealand.
Beyond ESG data products, CAER works with clients to undertake specific and customized research projects, including developing responsible investment policies and strategies along with portfolio assessments and screening scenarios. CAER also works with clients to deliver bespoke thematic research reports and bespoke ethical and ESG assessments.
“The entire team and I are excited to join ISS ESG and to bring CAER’s industry leading solutions and services to a wider, global audience,” said CAER CEO Julia Leske. “Moreover, the expansive offerings, high-touch service, and global scale provided by ISS ESG will benefit our clients greatly.”
CAER’s Chair James Thier agreed, noting: “CAER has provided tailored research and ESG services throughout the growth of ethical/responsible investment in Australia. Increasing consolidation has been part of this maturity, and there was an opportunity for the CAER team to play a more prominent role in global development with ISS, whilst still offering dedicated, local input – which has seen the broader RI market grow to more than half of all managed funds in Australia.”
Founded in 1985 as Institutional Shareholder Services Inc., ISS is the world’s leading provider of corporate governance and responsible investment (RI) solutions for asset owners, asset managers, hedge funds, and asset service providers. ISS’ solutions include: objective governance research and recommendations; RI data, analytics, advisory and research; end-to-end proxy voting and distribution solutions; turnkey securities class-action claims management (provided by Securities Class Action Services, LLC); and reliable global governance data and modeling tools. Clients rely on ISS’ expertise to help them make informed corporate governance decisions. For more information, please visit www.issgovernance.com.
About ISS ESG
ISS ESG is the responsible investment arm of Institutional Shareholder Services Inc., the world’s leading provider of environmental, social, and governance solutions for asset owners, asset managers, hedge funds, and asset servicing providers. Under the ISS ESG umbrella are three discrete units that draw on deep historical and industry expertise, including: ISS-ethix, which enables investors to develop and integrate responsible investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions; ISS-climate, which provides data, analytics and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes; and ISS-oekom, which provides corporate and country ESG research and ratings and enables its clients to identify material social and environmental risks and opportunities including through advisory services. ISS ESG clients rely on the expertise of all three to help them integrate responsible investing policies and practices into their strategy and shareholder voting decisions. For more information, visit www.issgovernance.com/esg.
CAER is a leading Australasian provider of independent research and services relating to the environmental, social and governance (ESG) and ethical performance of companies and investment portfolios. CAER was established in 2000, and launched as a stand-alone, independent business providing tailored ESG data and ethical analysis of companies for a large and diverse client base in 2002. As a specialist in the field backed by a long history of research, CAER’s client base soon expanded, positioning our organisation at the forefront of detailed global ESG research in the country. Combining detailed qualitative and quantitative metrics CAER’s products and services are based on rigorous research systems and help clients to integrate their specific responsible investment approaches.
Subodh Mishra, Executive Director