State Street Global Advisors has developed a deeply researched equity climate strategy. Our climate-aware investment process seeks to enable investors to improve their portfolio’s carbon profile and reduce climate risk, while maintaining target returns.
The Slow-Burning Crisis
The scientific evidence for man-made climate change isincontrovertible. The last five years have been the hottest onrecord and there is a greater than even chance that 2020 willbe the hottest.1
Last year was marked by disaster caused by more frequentand extreme weather events brought about by climate change.A notable example was the Australian wildfires, set off by arecord heatwave, which destroyed 44,400 square miles ofbushland and forest and led to the killing or displacement ofan estimated 3 billion animals.2
Warming has also led to unprecedented melting of ice andsnow at the north and south poles. Sea level rise will meancoastal communities are much more exposed to floodingand extreme storms, leading many to migrate inland, puttingpressure on infrastructure and resources. And with greatercarbon dioxide in the oceans comes ocean acidification,degradation of marine ecosystems and reduction inmarine biodiversity.
Research suggests that ‘tipping points’ such as the melting ofhuge ice sheets or the loss of the Amazon rainforest are muchmore likely to occur than previously thought.3
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee 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.
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