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    Environmental, Social and Governance

    ESG Integration

    ESG integration aims to improve financial performance and/or mitigate financial risk. It involves considering ESG factors explicitly and systematically in investment analysis and decisions to lower risk and generate returns. 

    It is not about achieving particular environmental, social, or governance goals. It’s about looking at the whole investment picture and considering material ESG components as a driver of risk and/or return.

    From a fiduciary perspective, ESG integration should take into account all financially material risks and opportunities that arise out of ESG information. Integrating ESG into your investment decision is an important element in achieving superior long-term compounding benefits.

    ESG Integration in Practice

    Active
    ESG integration encompasses the use of qualitative and quantitative ESG information in the investment processes, with the objective of enhancing investment decision-making. Integration of ESG issues can be used to inform economic and industry research, at the stock or issuer level or at the portfolio construction level.

    Index
    Integration of ESG issues into alternative-weighted ESG indices in which the constituents’ security weighting takes into account the ESG characteristics of the company or country. 

    ESG data are included in the investment process and could result in upward or downward adjustments to the weights of securities, including to zero.

    Smart Beta
    Integration here involves identifying correlations between ESG factors and price movements that can generate alpha and/or reduce risk.  Models are constructed to integrate ESG factors alongside other factors, such as value, size, momentum, growth, and volatility. 

    The main approaches to integrating ESG factors into quantitative models can involve adjusting the weights of:

    • Each security in the investment universe, according to the statistical relationship between an ESG dataset and other factors.
    • Securities ranked poorly on ESG to zero.
    • And reducing the exposure to poorly ranked stocks through constraints.

    MARKETING COMMUNICATION

                                       

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    SSGA SPDR ETFS MAY NOT BE AVAILABLE OR SUITABLE FOR ALL. SPDR ETFs may be offered and sold only in those jurisdictions where authorised, in compliance with applicable regulations.

     

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    The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor.

     

    The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

     

    All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.  There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

     

    This content has been issued by State Street Global Advisors Europe Limited (“SSGAEL”), regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson’s Quay, Dublin 2. Registered number 49934. T: +353 (0)1 776 3000. Fax: +353 (0)1 776 3300.

     

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    Please refer to the Fund’s latest Key Information Document (KID) and Prospectus before making any final investment decision. The latest English version of the prospectus and the KID can be found at www.ssga.com. A summary of investor rights can be found here:

     

    Managed Funds: https://www.ssga.com/library-content/products/fund-docs/summary-of-investor-rights/ssga-investors-rights-summary-non-etf-ireland.pdf

     

    SPDR ETFs: https://www.ssga.com/library-content/products/fund-docs/summary-of-investor-rights/ssga-spdr-investors-rights-summary.pdf

     

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    SPDR ETFs is the exchange traded funds ("ETF") platform of State Street Global Advisors and is comprised of funds that have been authorised by Central Bank of Ireland as open-ended UCITS investment companies.

     

    SSGA SPDR ETFs Europe I & SPDR ETFs Europe II plc issue SPDR ETFs, and is an open-ended investment company with variable capital having segregated liability between its sub-funds. The Company is organized as an Undertaking for Collective Investments in Transferable Securities (UCITS) under the laws of Ireland and authorized as a UCITS by the Central Bank of Ireland.

     

    FOR STRATEGIES:

     

    This document provides summary information regarding the Strategy. This document should be read in conjunction with the Strategy's Disclosure Document, which is available from SSGA. The Strategy Disclosure Document contains important information about the Strategy, including a description of a number of risks.

     

    The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

    4978691.1.2.EMEA.INST

    Exp: 31.01.2024

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