We advise that investors define and develop specific ESG investment objectives and goals, based on their vision, mission, and investment goals. Common objectives can include alpha generation, risk mitigation, responding to new ESG regulations, aligning investments to their preferences, or meeting individual client investment goals. Investment principles can be developed based on these objectives, which will form the ESG investment strategy.
Climate Investing
This is a thematic investment approach that aims to align portfolios with the transition to a low carbon economy and a reduction in global warming to well below 2°C.
For investors seeking to align portfolios with the Paris Agreement goals and the transition to a low-carbon economy, we offer a variety of options across equities and fixed income. Our Sustainable Climate Strategies may help investors benefit from both mitigation of current and future emissions, and adaptation to embedded climate risks.
Our investment team draws upon our vast capabilities, partnerships, and data sets to assess companies on financially material, decision-useful information. From climate to governance structures and business involvement activities, our commitment to rigorous analysis helps investors gain insights.
Our pragmatic and widely respected asset stewardship program is focused on driving long-term value creation. Our team of experts accomplish this through:
Engagement with portfolio companies to develop transparent, accountable and effective boards.
Proxy voting that aligns with our clients’ long-term investment horizon.
Thought leadership that informs and provides guidance to portfolio companies on disclosing and managing material risks.
As part of State Street Corporation, whose mission is to create better outcomes for the world’s investors and the people they serve, we invest responsibly to enable economic prosperity and social progress. As a fiduciary, we have an obligation to put our clients’ long-term interests first.
To be effective in fulfilling this obligation, we need to consider all factors that have a material impact on long-term value creation. This includes material ESG factors, which we believe can affect the performance of investments to varying degrees across companies, sectors, regions, asset classes, and through time.