R-Factor™ - A Roadmap to Build Sustainable Companies
State Street Global Advisors’ R-Factor™ ESG score supports the development of more sustainable capital markets.
What is R-Factor™?
Responsible investing requires a tool to measure the performance of a company's business operations and governance as it relates to financially material ESG challenges facing the company's industry. We refer to this scoring mechanism as the Responsibility Factor, or R-Factor™.
R-Factor™ scores draw on multiple data sources and leverage widely accepted, transparent materiality frameworks from the Sustainability Accounting Standards Board (SASB) and corporate governance codes to generate a unique ESG score for listed companies.
How R-Factor™ Builds Sustainable Companies
R-Factor™ is the first ESG scoring system that offers companies a roadmap on how to manage and disclose their ESG practices, allowing them to take the action needed to enhance their scores. It is built to address the current challenges with ESG data by removing opaqueness around ESG materiality in the scoring process.
Put simply, it takes the guesswork out of ESG reporting, and focuses boards and management teams on the core ESG issues that matter for business and investors. Small, mid-cap, and emerging market companies stand to particularly benefit from R-Factor™because of its focused approach.
The world of ESG disclosure may seem complex – but with R-Factor™, companies and investors no longer have to go it alone. Together, we can forge a new standard in ESG investing.
Companies interested in receiving their R-Factor™ scores should submit an email request to firstname.lastname@example.org including the following information:
Company’s legal name
Company’s headquarter location
Contact’s Title at Company
Contact email address (must be an official company email address)
(Please note that R-Factor™ scores will be provided only to employees affiliated with a company’s Investor Relations, Chief Financial Officer, ESG/Sustainability Leadership or General Secretary’s organizations. Please include attestation in your email stating that you are affiliated with one of these functions.)
Scores are provided within two weeks of submission and include disclosure about your company’s score relative to regional and global peers, as well as frequently asked questions.
Guidance on Next Steps After Receiving Your Score
We encourage you to explore the publicly available frameworks of the Sustainability Accounting Standards Board (SASB) and your region’s corporate governance code to understand investors’ expectations around the management of financially material ESG issues facing your industry and region. We have also provided responses to frequently asked questions about R-Factor.
You may also wish to review SASB’s implementation primer, a reference document for companies that have chosen to integrate SASB standards into their core communications with investors. The implementation primer is available here: https://www.sasb.org/implementation-primer/
Corporate governance codes are made publicly available by the relevant regulator / investor network
This website is intended for persons resident in Australia. State Street Global Advisors, Australia Services Limited ABN 16 108 671 441, AFSL Number 274900 ("SSGA, ASL") is the product issuer. State Street Global Advisors, Australia, Limited (AFSL Number 238276, ABN 42 003 914 225) (“SSGA Australia”) is the Investment Manager. The material on this website is general information only and does not take into account your individual objectives, financial situation or needs. You should read and consider the Product Disclosure Statement (PDS) for the relevant product carefully before making an investment decision and consult your financial adviser. You can access our PDS online or by calling us. The offer made in our PDS is available to persons receiving the PDS within Australia and applications from outside Australia will not be accepted. Past performance is not a reliable indicator of future performance. Investing entails risks and there can be no assurance that State Street Global Advisors will achieve profits or avoid incurring losses.
Investing involves risk including the risk of loss of principal. This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information. Performance quoted represents past performance, which is not a reliable indicator of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
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