Amid environmental and societal challenges, and incoming ESG regulations, how can investors build long-term resilience in their portfolios while benefiting from new investment opportunities?
We advise that investors define and develop specific ESG investment objectives and goals, based on their vision, mission and investment goals. Common investor objectives can include alpha generation, risk mitigation, adhering to ESG regulations or aligning the portfolio to the investor’s values. Investment principles can be developed based on these objectives, which will form the ESG investment strategy.
Climate Investing
This is a thematic investment approach that aims to align portfolios with the transition to a low carbon economy and a reduction in global warming to well below 2°C.
For investors seeking to align portfolios with the Paris Agreement goals and the transition to a low-carbon economy, we offer a variety of options across equities and fixed income. Our Sustainable Climate Strategies allow investors to benefit from both mitigation of current and future emissions, and adaptation to embedded climate risks.
We built a transparent, multi-source data architecture to help investors better understand their ESG exposures, takeaction to achieve their investment goals and monitor results.
At State Street, our mission is to invest responsibly to enable economic prosperity and social progress. We believe that identifying and systematically incorporating material ESG issues is integral to our role as fiduciaries of our clients’ capital. As one of the world’s largest asset managers, we can partner with clients to achieve their ESG objectives through our global expertise in ESG research, investment strategy and data analytics, leveraging our top rated* ESG capabilities.
Through strong engagement, voting and thought leadership, we have seen companies respond to our calls to action to enhance diversity at the board level, strengthen board leadership and improve disclosure on their sustainability practices.
Further information on our stewardship approach can be found in our Annual Stewardship Report.