Investment IDentifiability Project (IID)

The project tackles a fundamental challenge for investors: the ability to clearly identify who they are investing in. The transparency of legal entities is crucial in understanding corporate structures, tracking ownership, and assessing ESG-related risks like climate change or tax practices. Through the use of LEIs, which are globally recognized entity identifiers, the project enables investors to navigate complex corporate landscapes, improving their ability to perform thorough due diligence.

The Global Investment IDentifiability Indicator (GIII), developed as part of this initiative, provides a straightforward measure for assessing how transparent and identifiable a company's legal structure is. It evaluates companies listed in indices such as the S&P 500, MSCI World, and Bloomberg Barclay’s Global Aggregate Bond across three core criteria:

1. Does the entity have an LEI?
2. Does it disclose its corporate structure?
3. Is the LEI up-to-date and recently validated?

By ensuring that legal entities are easily identifiable and that their corporate structures are transparent, the project enhances the ability of asset owners and managers to make responsible investment choices. The IID project helps investors avoid hidden risks, such as unreported environmental impacts or unclear tax practices, aligning investments with long-term sustainability goals.