Investment Capabilities

Address Climate Change in Your Bond Portfolio

Our Sustainable Climate Bond Strategy (the Strategy) seeks to align with the goals of the Paris Agreement, and allows investors to mitigate current and future carbon emissions, and reallocate capital towards green bonds and companies adapting to climate-related risks.

Climate Targets

Lose the Carbon, Fund the Transition

The Strategy employs a stratified sampling approach to achieve the most efficient trade-off between climate targets and tracking error, while achieving long-term returns broadly in line with the underlying benchmark.

The Strategy is characterised by the following:

Mitigation and Adaptation

Fund the Transition

Aligns with the Paris Agreement

Exclusionary Screening

Meets Client Objectives Flexibly

Targeted Climate Objectives

sustainable climate bond strategy

Other Climate Bond Solutions

The State Street Sustainable Climate Corporate Strategy for Euro and US Corporate indices has a live track record since May 2021. While there is not yet a live track record we also offer the strategy for Global Corporates and US High Yield, and back-tested results are available on request.

Our Low-Carbon Corporate Bond framework offers bond investors a way to achieve a lower carbon footprint, while also maintaining similar returns to the performance of their selected fixed income benchmark. Our customised portfolios can minimise tracking error for a targeted level of carbon reduction or maximise carbon reduction for a targeted level of tracking error.

We can help clients achieve significant improvements in carbon intensity with minimal impact to credit quality or interest-rate risk relative to corporate bond benchmarks.

How to Access

The Sustainable Climate Corporate Bond Strategy, Sustainable Climate US High Yield Strategy and Low-Carbon Corporate Bond Strategy are available via separately managed accounts.