Strategies & Capabilities

Taking Action on Climate Change Investment

To help investors build more climate-resilient portfolios, our team is designing the next generation of climate change solutions.

See how the State Street Climate ESG International Equity Fund is constructed.

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Avoiding the Tragedy on the Horizon

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.

Climate Targets

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.

Exclusionary Screening

Excludes companies involved in activities related to: controversial weapons, thermal coal, tobacco, severe ESG controversies, and violations of the UN Global Compact. Learn more about how and why we apply screens.

ESG Scoring

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.

Our Commitment 

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.

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