Promoting Sustainable Value

Published 01-Feb-2017

As one of the largest investment managers and one of the largest index managers in the world, working on behalf of millions of investors, SSGA brings a unique perspective to asset stewardship and the importance of sustainable returns.

Long-term ownership, together with our size and global scale, helps to enhance our perspective and influence with our portfolio companies. It means we bring a unique, top-down vantage point across industries and countries on the kinds of environmental, social and governance (ESG) risks and opportunities that confront companies and their shareholders.

As active stewards, we represent the interests of our clients, who are the actual owners of the more than $2.4 trillion in assets that we manage*. Our fiduciary responsibility is to ensure we maximise the probability of attractive long term return streams our clients need to achieve their investment goals – whether they be saving for retirement, funding research or building the infrastructure of tomorrow.

As part of this commitment, President and CEO of SSGA Ron O’Hanley recently sent a letter to lead directors of major listed companies in the US, UK and Australia reinforcing the importance for boards to consider the impact of environmental and social sustainability issues on their long-term performance. Included was our framework for boards to evaluate and communicate how these risks and opportunities can affect long-term strategy.

You can download a copy of that letter and our framework below, in addition to a copy of a presentation ‘Incorporating ESG to Promote Sustainable Value’ which Ron delivered at the Australian Superannuation Chair Forum in Melbourne Australia on January 30.

Engagement Framework - Letter to Company Boards

Promoting Sustainable Value – Australia Presentation

 

*Assets under management were $2.47 trillion as of December 31, 2016. AUM reflects approximately $30.62 billion (as of December 31, 2016) with respect to which State Street Global Advisors Funds Distributors, LLC serves as marketing agent; State Street Global Advisors Funds Distributors, LLC and State Street Global Advisors are affiliated.

 

 

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