Investors are increasingly aware of the potential systemic risks climate change poses to the financial system. These climate change risks impact almost all segments and industries – not just the obvious polluters. However, with climate risk comes tremendous opportunity with the increasing attractiveness of renewable energy driving investment to fossil fuel alternatives.
Transform Your Equity Portfolio
The State Street Climate ESG International Equity Fund (the Fund) offers global equity exposure, while building climate change thematically into the portfolio. At the same time, the Fund seeks increased exposure to companies that score well on our ‘Responsibility Factor’ (R-Factor™), and screens out companies with ESG risk and reputational issues.
Revenues from low-carbon technology and “clean” energy production. 1
Fossil Fuels -90%
GHG emissions resulting from a company’s fossil fuel reserves. 1
Carbon Intensity -70%
Direct and indirect GHG emissions. 1
Lose the Carbon, Position for the Future
Designed for Australian investors, the Fund is characterised by the following:
Mitigation and Adaptation
Reallocates capital away from companies with high carbon emissions and brown revenues, and increases exposure to new energy and green companies.
To help build a more climate-resilient portfolio, the Fund also increases exposure to companies working proactively to minimise their exposure to actual or expected physical, economic and regulatory impacts of climate change.
Aligns to Paris Accord
The Fund aims to align with the most ambitious goals stemming from the landmark 2015 Paris Agreement — including limiting climate change to the 2° Celsius warming scenario over post-industrial levels2.
Excludes companies involved in activities related to: controversial weapons, tobacco, severe ESG controversies and violations of the UN Global Compact.
Provides an increased exposure to sustainable companies that are highly rated by our ESG scoring system (R-Factor™).
Delivering a Risk-Adjusted Return
Seeks to achieve the most efficient trade-off between climate objectives, R-Factor™ improvement, tracking error and diversification, while achieving long-term returns broadly in line with the MSCI World ex-Australia Index.
Targeted Climate and ESG Objectives
View Your Climate and ESG Exposures
Our reporting helps clients understand how the Fund performs against investment objectives, and climate focused objectives. The report can potentially help clients meet their climate reporting obligations to beneficiaries, trustees, and other stakeholders.
Work with a Leader
A leader in ESG investing for 30+ years, we launched our first ESG mandate in 1985 and were a pioneer in low-carbon investing.
PRI Score A+
Our Firm's rating from the Principles for Responsible Investment 3
Global Assets $374B
ESG assets under management (USD) 4
Our first ESG mandate
We're proud of our environmental sustainability efforts. From reducing our use of natural resources to helping our employees make more informed choices, together we’ve helped decrease our environmental footprint.
Whether clients want to manage risk, align investments to their values, or pursue more sustainable performance, we rigorously assess environmental, social and governance issues to inform better decision making.
Latest Climate Education
Carbon Pricing: Where Are We Going
Reaching low or net zero carbon emissions is often the goal for many countries. Pricing mechanisms being implemented are creating opportunities for informed investors
1 The above targets are as of 1 June 2020 and are subject to change as both the science and the data behind climate investing evolves. Targets are relative to the MSCI World ex-Australia Index. 2 IPCC (Intergovernmental Panel on Climate Change). 2014. “IPCC Fifth Assessment Report: Climate Change 2014.” https://www.ipcc.ch/report/ar5/. 3 Source: State Street Global Advisors, Principles for Responsible Investment. Rated A+ for Listed Equity Active Ownership (Asset Stewardship) and Strategy and Governance. Scores for FY2019, released 2020. 4 Source: State Street Global Advisors, as at 30 September 2020 5 Principles for Responsible Investment (PRI), Asset Owner Manager Selection Guide, 2018
Investing involves risk including the risk of loss of principal. Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.
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.
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.