Investors are thinking through their strategies to support achieving net zero by 2050. We’d like to share some of our own research to help guide investors. There are three main methodologies available in the market. While all three frameworks focus on setting Paris aligned targets for financial institutions, there are some similarities and differences among the three frameworks:
Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative (PAII)
Science Based Targets Initiative (SBTi) for Financial Institutions
United Nations-convened Net Zero Asset Owner Alliance (NZAOA) target setting protocol
State Street Global Advisors Worldwide Entities
Past performance is not a reliable indicator of future performance. Index returns are unmanaged and do not reflect the deduction of any fees or expenses.
Diversification does not ensure a profit or guarantee against loss.
Investing involves risk including the risk of loss of principal. Past performance is no guarantee of future results.
The views expressed in this material are the views of State Street Global Advisors Global through the period 1 April 2022 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
The targets and estimates are based on certain assumptions and there is no guarantee that the estimates will be achieved. Investing involves risk including the risk of loss of principal.
All information is from SSGA unless otherwise noted and has been obtained from sources relieved 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.
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.
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.
This communication is directed at professional clients (this includes eligible counterparties as defined by the Central Bank of Ireland (CBI) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available top such persons and persons of any other description (including retail clients) should not rely on this communication.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
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.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.