A Case For: Sustainable Climate Equity Strategy

State Street Global Advisors has developed a deeply researched equity climate strategy. Our climate-aware investment process seeks to enable investors to improve their portfolio’s carbon profile and reduce climate risk, while maintaining target returns.

The Slow-Burning Crisis

The scientific evidence for man-made climate change isincontrovertible. The last five years have been the hottest onrecord and there is a greater than even chance that 2020 willbe the hottest.1

Last year was marked by disaster caused by more frequentand extreme weather events brought about by climate change.A notable example was the Australian wildfires, set off by arecord heatwave, which destroyed 44,400 square miles ofbushland and forest and led to the killing or displacement ofan estimated 3 billion animals.2

Warming has also led to unprecedented melting of ice andsnow at the north and south poles. Sea level rise will meancoastal communities are much more exposed to floodingand extreme storms, leading many to migrate inland, puttingpressure on infrastructure and resources. And with greatercarbon dioxide in the oceans comes ocean acidification,degradation of marine ecosystems and reduction inmarine biodiversity.

Research suggests that ‘tipping points’ such as the melting ofhuge ice sheets or the loss of the Amazon rainforest are muchmore likely to occur than previously thought.3