Periodically, ISS engages in dialogue with issuers and other market participants when doing so is likely to inform clients' voting decisions. While vote recommendations are based on publicly available information, ISS strongly believes that engagement leads to more balanced, accurate and informed research reports and voting decisions.
The on-the-ground presence includes approximately 500 data and research staff based in global offices around the world. As members of their respective governance communities, analysts frequently engage with investors, issuers, regulators, other market participants and governance constituents in their local markets. The purpose of ISS’ engagement activities with global companies is to gain understanding and to check facts with issuers to ensure that ISS has the best possible information upon which to base its reports and recommendations to clients.
ISS is fully transparent about its issuer communication and indicates on each report whether ISS engaged with the company to glean further information or clarity. ISS has long committed to proactive engagement as part of the research process and firmly believes that this commitment – although sometimes resource-intensive – ensures that its research and vote recommendations are more objective, comprehensive, and well-informed.