Sustainable Investing Fixed Income

Combining performance and responsible investing

We believe in providing choice and that all investors deserve the opportunity to build investment strategies matched to their goals and preferences. Our sustainable investing capabilities leverage our investment expertise, deep research from our dedicated Sustainable Investing Research & Data team, a proprietary toolkit, and detailed portfolio reporting.

Latest insights

Integrating Climate into Systematic Active Fixed Income Strategies

Explore how SAFI strategies can help deliver climate alignment without compromising performance—watch our short video or read the report.

Learn more

Commitment to sustainable investing

$790B+

Sustainable assets managed by State Street Investment Management¹

$3.9B+

Fixed income climate-thematic AUM²

20+

Dedicated specialists for sustainable data and research

More on sustainability in fixed income

Sustainable Investing

Forward-looking climate metrics in corporate bond portfolios

Discover how implied temperature rise, carbon risk rating, and climate value at risk can inform corporate bond strategies.

Download insights

Sustainable Investing

EMEA asset owners turn to nature-linked bonds for positive outcomes and returns

New survey by State Street Investment Management indicates that respondents are showing an interest in nature- and biodiversity-linked financial instruments, with 40 percent planning to prioritize such investments in the coming year.

Learn more

Fixed Income

A Case For: Climate Transition Corporate Bond Beta Investing Approach

Climate Transition Corporate Bond Beta Investing Approach.

Learn more

Sustainable Investing

The Climate Files

Our Climate Files details the latest techniques for fixed income investors - whether it is active or indexed investment solutions

Learn more

Climate bond strategies

Discover a forward-looking investment solution built for climate-thematic investors while leveraging advanced indexing to balance diversification and performance tracking to the target benchmark.

Climate Transition Euro Corporate Bond Beta Strategy

The latest fact sheet for the Climate Transition Euro Corporate Bond Beta Strategy

View strategy

Climate Transition US Corporate Bond Beta Strategy

The latest fact sheet for the Climate Transition US Corporate Bond Beta Strategy.

View strategy

Customized Solutions

We understand that our clients view their portfolios — and, in turn, their sustainable investing objectives — holistically. We seek to be a strategic partner to our clients and are able to incorporate sustainable investing criteria across equities, fixed income, and other asset classes for investors with sustainable investment objectives.

We employ an iterative, consultative process when partnering with investors to help ensure all relevant objectives and investment concerns are taken into consideration. Our process includes inputs from across the organization, including insights and expertise from:

Research Teams
Traders and Portfolio Managers
Investment Strategists
Risk Management Professionals
Data Analytics & Reporting Specialists

By partnering with clients and collaborating with our research and investment colleagues, we are able to design bespoke solutions that help our clients align their sustainable objectives with their investments.

Team and track record

We have an extensive sustainable investing track record, as well as dedicated Sustainable Investing and Asset Stewardship teams covering data and research, integration and strategy, and engagement and voting. We leverage additional sustainable investing resources within our investment, marketing, and reporting teams.

Want to hear more?

We have enhanced capabilities and develop insights in supporting those who are interested in incorporating a broad set of climate and other sustainability-related metrics in their investment strategies. Start your transition today.

Get in touch

Footnotes

¹Estimated and unaudited SSGA Sustainable Investing assets under management as of March 31, 2025 are $791billion as calculated by SSGA for Sustainable Investing Accounts. SSGA defines a “Sustainable Investing Account” as a client account (i.e., fund or separately managed account managed by SSGA) that utilizes an investment strategy that falls into one of the following three categories, which are not mutually exclusive:

Negative Sustainable Investing Screen, as defined below
Positive Sustainable Investing Screen, as defined below
Third-Party ESG/Sustainable Investing Index Investment Strategies, as defined below

1. Negative Sustainable Investing Screen: A “Negative Sustainable Investing Screen” (also known as an exclusionary screen) is a screen incorporated into the investment strategy utilized for the management of a portfolio that results in the exclusion from the portfolio of securities of issuers that fail to satisfy certain sustainability criteria (e.g., because the issuers comprise part of a sector or industry). Negative Sustainable Investing Screens include but are not limited to SSGA Point of View (“POV”) screens, norms-based screens, Socially Responsible Investing (SRI) screens, and screens provided by other third parties (including client-directed screens). Where a client’s investment agreement and/or investment guidelines specify, or the client otherwise communicates to SSGA that the application of a negative screen is to satisfy a purpose other than sustainable investing (e.g., diversification), such screens do not qualify as a Negative Sustainable Investing Screen. Note: There are several ways in which a company can be considered to be involved in a particular product or service, and a screening methodology, along with coverage limitations, may result in a negatively screened portfolio having some exposure to the screened criteria.

2. Positive Sustainable Investing Screen: A “Positive Sustainable Investing Screen” is a screen incorporated into the investment strategy utilized for the management of a portfolio that intentionally includes securities of issuers identified as having positive sustainability characteristics relative to the issuer’s industry or sector peers. Positive Sustainable Investing Screens target an improvement of a portfolio’s sustainability profile as compared to a benchmark or stated investment guideline, measured by a sustainability score or a sustainability metric, or invest only in issuers within an industry or sector that score higher within that industry or sector than the issuer’s peers.

3. Third-Party ESG/Sustainable Investing Index Investment Strategies: An index-tracking client account qualifies as a Sustainable Investing Account if it tracks a Third-Party ESG/Sustainable Investing Index. An index is deemed to be a “Third-Party ESG/Sustainable Investing Index” if the index methodology incorporates ESG/sustainability factors or characteristics that are utilized by the third-party index provider to determine which securities and/or how much in weight are included as index constituents. A client account that utilizes a Third-Party ESG/Sustainable Investing Index as a reference benchmark for performance or reporting purposes, but does not seek to track such index as an investment strategy, does not qualify as a Sustainable Investing Account unless it meets at least one of the first two prongs of the definition of “Sustainable Investing Account” set forth above.

The methodology used by SSGA to identify Sustainable Investing AUM may differ from the methodology used under certain classification and disclosure regulatory regimes. SSGA makes no representation that an account identified as a “Sustainable Investing Account” satisfies all Sustainable Investing categories under the SSGA Sustainable Investing Account Identification Policy. A Sustainable Investing Account may satisfy only one of the three categories described above, and within that category it may incorporate a single sustainability factor or exposure. SSGA’s Sustainable Investing AUM may include AUM of client accounts for which a negative screen is applied at the request of the client for regulatory or other purposes, which may not be disclosed to SSGA, that SSGA believes results in the exclusion from the client’s portfolio of securities based on sustainability criteria.

² Estimated and unaudited SSGA Climate-Related Assets Under Management as of March 31, 2025 are $120billion. SSGA’s “Climate-Related Assets Under Management” includes Sustainable Investing Accounts (defined below) that meet the following criteria, which are not mutually exclusive:

Positive Sustainable Investing Screens that target an improvement of a portfolio’s Climate Profile
Third-Party ESG/Sustainable Investing Index Investment Strategies if the index methodology incorporates a Positive Sustainable Investing Screen that targets an improvement of a portfolio’s Climate Profile

“Climate Profiles” include but are not limited to climate change, climate transition (including EU CTB indices), Paris Agreement alignment (including EU PAB indices), carbon emissions reduction and carbon reserve reduction.

SSGA defines a “Sustainable Investing Account” as a client account (i.e., fund or separately managed account managed by SSGA) that utilizes an investment strategy that falls into one of the following three categories, which are not mutually exclusive:

Negative Sustainable Investing Screen, as defined below
Positive Sustainable Investing Screen, as defined below
Third-Party ESG/Sustainable Investing Index Investment Strategies, as defined below

1. Negative Sustainable Investing Screen: A “Negative Sustainable Investing Screen” (also known as an exclusionary screen) is a screen incorporated into the investment strategy utilized for the management of a portfolio that results in the exclusion from the portfolio of securities of issuers that fail to satisfy certain sustainability criteria (e.g., because the issuers comprise part of a sector or industry). Negative Sustainable Investing Screens include but are not limited to SSGA Point of View (“POV”) screens, norms-based screens, Socially Responsible Investing (SRI) screens, and screens provided by other third parties (including client-directed screens). Where a client’s investment agreement and/or investment guidelines specify , or the client otherwise communicates to SSGA that the application of a negative screen is to satisfy a purpose other than sustainable investing ( e.g., diversification), such screens do not qualify as a Negative Sustainable Investing Screen. Note: There are several ways in which a company can be considered to be involved in a particular product or service, and a screening methodology, along with data coverage limitations, may result in a negatively screened portfolio having some exposure to the screened criteria.

2. Positive Sustainable Investing Screen: A “Positive Sustainable Investing Screen” is a screen incorporated into the investment strategy utilized for the management of a portfolio that intentionally includes securities of issuers identified as having positive sustainability characteristics (including positive characteristics of sub-components of sustainability such as environmental, climate or social characteristics) relative to the issuer’s industry or sector peers. Positive Sustainable Investing Screens target an improvement of a portfolio’s sustainability profile as compared to a benchmark or stated investment guideline, measured by a sustainability score or a sustainability metric, or invest only in issuers within an industry or sector that score higher within that industry or sector than the issuer’s peers.

3. Third-Party ESG/Sustainable Investing Index Investment Strategies: An index-tracking client account qualifies as a Sustainable Investing Account if it tracks a Third-Party ESG/Sustainable Investing Index. An index is deemed to be a “Third-Party ESG/Sustainable Index” if the index methodology incorporates ESG/sustainability factors or characteristics that are utilized by the third-party index provider to determine which securities and/or how much in weight are included as index constituents. A client account that utilizes a Third-Party ESG/Sustainability Investing Index as a reference benchmark for performance or reporting purposes, but does not seek to track such index as an investment strategy, does not qualify as a Sustainable Investing Account unless it meets at least one of the first two prongs of the definition of “Sustainable Investing Account” set forth above.

The methodology used by SSGA to identify Sustainable Investing AUM and Climate-Related Themes may differ from the methodology used under certain classification and disclosure regulatory regimes. SSGA makes no representation that an account identified as a “Sustainable Investing Account” or “Climate-Related” satisfies all Sustainable Investing categories or incorporates all Climate Profiles under the SSGA Sustainable Investing Account Identification Policy. A Sustainable Investing Account may satisfy only one of the three categories described above, and a Climate-Related Account may incorporate a single Climate-Related factor or exposure. Climate-Related AUM may include exposure to fossil fuels.

Disclosures

Information Classification: General

For institutional / professional investors use only.

Marketing Communication

State Street Global Advisors Worldwide Entities.

Investing involves risk including the risk of loss of principal.

The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor.

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.

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 applicable regional 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.

This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio’s specified sustainable investment criteria may trail the returns on a portfolio of securities which include such companies. A portfolio’s sustainable investment criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.

Investing in foreign domiciled securities may involve risk of capital loss from unfavorable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.

Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries.Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

This document provides summary information regarding the Strategy. This document should be read in conjunction with the Strategy’s Disclosure Document, which is available from SSGA. The Strategy Disclosure Document contains important information about the Strategy, including a description of a number of risks.