Strategies & Capabilities
Taking Action on Climate Change Investing
To help investors build more climate-resilient portfolios, our team is designing the next generation of climate change solutions.
Transform Your Equity Portfolio
Climate change poses a significant systemic risk within investment portfolios. However, as the global economy is weaned off fossil fuels and the “green” economy expands, significant investment opportunities will likely surface. With the right approach, investors can capitalise on these opportunities as the world transitions to a low-carbon future.
The State Street Climate ESG International Equity Fund (the Fund) offers a diversified global equity exposure, built around a climate change theme. 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.
The future won’t wait. Start your transition today.
Climate Targets
Revenues from low-carbon technology and the “green” economy. 1
Future GHG emissions from fossil fuel reserves. 1
Direct and indirect GHG emissions. 1
Adaptation Score on Climate change preparedness. 1
Revenues related to drilling, mining and other extractive activities 1
Fund Characteristics
Designed for Australian investors, the Fund is characterised by the following:
Mitigation and Adaptation
Mitigation - aims to reduce exposure to the flow of heat-trapping greenhouse gases into the atmosphere and increase exposure to the “green” economy.
Adaptation - increases exposure to companies that are better prepared for the possible physical, economic and regulatory impacts of climate change, including GHG-reduction targets and transition plans.
Diversified Investment
Provides investors with a cost efficient way of gaining diversified exposure to international stock markets.
Exclusionary Screening
Excludes companies with material business activity involving tobacco, controversial (including nuclear) weapons, thermal coal, gambling, alcohol or adult entertainment; and companies that exhibit severe violations of the United Nations corporate sustainability principles or have extreme ESG controversies.
ESG Scoring
Seeks increased exposure to companies with strong ESG ratings using State Street’s ESG scoring methodology (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.
How to Access
The Fund is available directly or through a number of platforms. 2
Platforms
- AMP North
- BT
- Hub24 (inc Rhythm)
- Insignia (inc Expand, Grow, Voyage, MLC)
- Macquarie Wrap
- NetWealth
- Wealth02
Ratings
- Zenith* Recommended (November 2022)
- Lonsec** Recommended (March 2023)
- Morningstar Rated
Fund performance and holdings
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Constructing an ESG Investment Framework
With shifting consumer expectations and regulation, ESG and climate portfolios are shifting from being an outlier to the norm. But with so many shades of "green", the process of building ESG and Climate portfolios can be confronting.
We have created a practical framework to guide advisers in developing and implementing an ESG and climate investment philosophy and approach.
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