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Investment Strategies

Achieving Lower Carbon with Familiar Returns

Our Low Carbon Equity and Corporate Bond frame work provide a straightforward and effective way for investors to align their portfolios with the transition to a low-carbon economy and minimise exposure to climate-related risks.

Low Carbon Equity

We offer clients the opportunity to achieve long-term returns broadly in line with the underlying equity index benchmark, while optimising to achieve the most efficient trade-off between carbon reduction and tracking error.

The Solution allows clients to customise their portfolios to align with their specific carbon goals and risk budgets. In addition to setting the level of targeted carbon emission reduction or tracking error, investors can pre-select the developed market equity benchmark that represents their chosen starting universe.

Low Carbon Corporate Bond

Our State Street Low-Carbon Corporate Bond framework offer bond investors a way to achieve a lower carbon footprint, while maintaining similar returns to the performance of their selected fixed income benchmark. Our customised portfolios that can minimise tracking error for a targeted level of carbon reduction or maximise carbon reduction for a targeted level of tracking error.

We can help clients achieve significant improvements in carbon intensity with minimal impact to credit quality orinterest-rate risk relative to corporate bond benchmarks.