We advise that investors define and develop specific ESG investment objectives and goals, based on their vision, mission, and investment goals. Common objectives can include alpha generation, risk mitigation, responding to new ESG regulations, aligning investments to their preferences, or meeting individual client investment goals. Investment principles can be developed based on these objectives, which will form the ESG investment strategy.
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, our Sustainable Climate Strategy may help investors benefit from both mitigation of current and future emissions, and adaptation to embedded climate risks.
Negative screening excludes specific companies, sectors or countries based on ESG factors and/or an investor’s preferences. The benefits include mitigating reputational risk and enabling investors to avoid allocating funds to companies or sectors that conflict with their beliefs.
With decades of experience in developing screened approaches across equities and fixed income, we offer clients a tailored way to pursue their goals or risk mitigation preferences in their portfolios.
Best in Class
This approach focuses on investment in sectors and companies that we believe are leaders in terms of meeting certain ESG criteria relative to investment universes and/or industry peers.
Where appropriate, we aim to invest in sectors and companies, that are leaders in this way using our internal R-FactorTM ESG rating system and other ESG data sources.
Our investment team draws upon our vast capabilities, partnerships, and data sets to assess companies on financially material, decision-useful information. From climate to governance structures and business involvement activities, our commitment to rigorous analysis helps investors gain insights.
Our pragmatic and widely respected asset stewardship program is focused on driving long-term value creation. Our team of experts accomplish this through:
Engagement with portfolio companies to develop transparent, accountable and effective boards.
Proxy voting that aligns with our clients’ long-term investment horizon.
Thought leadership that informs and provides guidance to portfolio companies on disclosing and managing material risks.
As part of State Street Corporation, whose mission is to create better outcomes for the world’s investors and the people they serve, we invest responsibly to enable economic prosperity and social progress. As a fiduciary, we have an obligation to put our clients’ long-term interests first.
To be effective in fulfilling this obligation, we need to consider all factors that have a material impact on long-term value creation. This includes material ESG factors, which we believe can affect the performance of investments to varying degrees across companies, sectors, regions, asset classes, and through time.
State Street Global Advisors Worldwide Entities
The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
Responsible-Factor (R Factor) scoring is designed by State Street to reflect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Past performance is not a reliable indicator of future performance.
The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.