Our investment management business was founded on indexing. From introducing our first S&P 500 index fund in 1978 to launching the first exchange traded fund (ETF) in the US in 1993, there are few challenges our experienced portfolio management teams haven’t seen and can’t solve.
Investors may want to consider climate risk due to concerns over future changes in the energy industry, costs related to the transition of businesses to cleaner operations, values related to sustainable issues or other reasons. Hear Jenn Bender, Ph.D., Head of Research for Global Equity Beta Solutions, discuss the wide range of options investors can use in their indexed portfolios to address climate change.
Our stewardship program is designed to create long-term value for our clients. Through strong engagement, voting and thought leadership, we have seen companies respond to our calls to action to enhance diversity at the board level and improve disclosure on their sustainability practices.
Climate change is a systemic threat to the global economy and represents both a strategic and operational challenge for all companies. As awareness of the systemic impact of climate change has grown, there has been progress on many fronts.
State Street Global Advisors provides a framework for assessing ESG performance as it tracks the returns of four prominent US ESG index strategies versus the benchmark – using the extreme market volatility caused by the COVID-19 pandemic as a unique test of the strategies’ performance.
Climate data has some unique characteristics that investors should be aware of. Read on to understand more.
To learn more about our ESG Solutions please contact your Relationship Manager.
1Estimated and unaudited ESG AUM as of September 30th, 2021 for client mandates in the following categories: Negative/exclusionary screening, Norms-based screening, Best-in-class investment selection, and Sustainability-themed investing, as defined by United Nations Principles for Responsible Investing (UNPRI) as:
• Negative/exclusionary screening: The exclusion from a fund or portfolio of certain sectors, companies or practices based on specific ESG criteria.
• Norms-based Screening: Screening of investments against minimum standards of business practice based on international norms
• Positive/best-in-class screening: investment in sectors, companies or projects selected for positive ESG performance relative to industry peers
• Sustainability themed investing: Investment in themes or assets specifically related to sustainability (for example clean energy, green technology or sustainable agriculture)
2As of September 30, 2021
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The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
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