Net Zero Takes Off

With the arrival of the 26th UN Climate Change Conference (COP26), momentum is building for investors to plan for the transition to net zero emissions.

What will this mean for you? Take a look at our roadmap for your Journey to Net Zero here.

Defining Your ESG Goals

The COVID-19 pandemic has impacted all areas of our lives and highlights how globally interconnected we are. Encouragingly, the crisis has sharpened the focus of governments, companies and society on tackling the longer term threat of climate change. It has also increased awareness of the significance of ESG issues in general. Amid environmental and societal challenges, and incoming ESG regulations, how can investors build long-term resilience in their portfolios while benefiting from new investment opportunities?

We advise that investors define and develop specific ESG investment objectives and goals, based on their vision, mission and investment goals. Common investor objectives can include alpha generation, risk mitigation, adhering to ESG regulations or aligning the portfolio to the investor’s values. Investment principles can be developed based on these objectives, which will form the ESG investment strategy.

ESG Investment Strategies

Investors can meet their specific ESG objectives through a range of investment strategies.

Climate Investing

Data Analytics

We built a transparent, multi-source data architecture to help investors better understand their ESG exposures, takeaction to achieve their investment goals and monitor results.

ESG: Central to Our Investment Philosophy

At State Street, our mission is to invest responsibly to enable economic prosperity and social progress. We believe that identifying and systematically incorporating material ESG issues is integral to our role as fiduciaries of our clients’ capital. As one of the world’s largest asset managers, we can partner with clients to achieve their ESG objectives through our global expertise in ESG research, investment strategy and data analytics, leveraging our top rated* ESG capabilities.

Through strong engagement, voting and thought leadership, we have seen companies respond to our calls to action to enhance diversity at the board level, strengthen board leadership and improve disclosure on their sustainability practices.

Further information on our stewardship approach can be found in our Annual Stewardship Report.