Insights


A Case For: Sustainable Climate Bond Strategy

State Street Global Advisors has developed an innovative climate bond strategy. Our climate-aware investment process seeks to enable you to improve your portfolio’s carbon profile and reduce climate risk, while maintaining target returns.


Key Features of the Sustainable Climate Bond Strategy

  • Paris Aligned a comprehensive solution that enables investors to act now to minimise carbon intensity, reduce fossil fuel exposure and reduce brown revenue exposure. Avoids exposure to companies associated with high ESG controversies and commonly screened ESG issues (e.g. controversial weapons and UNGC violations).
  • Fund the Transition increase exposure to green bonds, adapting companies and bond issuers investing in the solutions needed to achieve net zero by 2050.
  • Keep the Returns a systematic and transparent approach that aims to deliver cost effective, diversified corporate bond exposure comparable to standard market-weighted corporate bond indices. Minimise active exposures that are not expected to outperform, such as currency, country, sector and industry exposure.
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