When entering the site and if cookies are prevented from being saved, a message must be displayed
in a popup message box informing the user that their local browser settings are preventing
cookies from being saved and that cookies are required for the site to work. Exact text
to be provided for UAT. On OK click of the message, the user should be redirected to
the global landing page (currently ssga.com).
In 2017, we called on boards to incorporate sustainability into long-term company strategy.
Over the past three years we have seen some progress, in that directors now acknowledge the importance of environmental, social and governance (ESG) issues to the business.
During engagements, however, we sense some ambivalence about the board’s role in overseeing ESG. Directors are seeking more guidance about what to focus on and what actions to take.
In response, we have developed guidance designed to help boards prioritize ESG within their organizations, including:
o State Street Global Advisors’ approach to contextualizing ESG issues within the current board oversight framework.
o R-Factor™, our transparent ESG score that measures the performance of your company’s business operations and governance as it relates to financially material ESG issues facing your industry.
o Our ESG oversight framework for directors that can serve as a road map for what actions are needed to further integrate sustainability into long-term strategy.
Board members have a critical role to play as catalysts for change on ESG issues. We look forward to engaging with you on this matter and partnering with you in the coming year to build stronger companies and capital markets
Over the past three years, there has been a noticeable change in directors’ recognition of the importance of sustainability or ESG issues to investors. When we first called on boards to incorporate sustainability into long-term strategy in 2017, only a few companies, mainly in Europe, could demonstrate that they had considered ESG in their strategy. A majority of companies were either not focused on ESG, or were considering it only in their communications with a broader set
Today, companies have begun to acknowledge the importance of ESG to their investors and boards are getting more involved in overseeing ESG. Meanwhile, directors continue to seek clarity on which issues are financially material to their business and want to understand investor expectations of the board’s role in overseeing ESG issues. Some of the reasons for these changes include:
Clearer understanding of climate change as a risk facing all companies globally
Growing awareness that intangible issues such as human capital and corporate culture are long-term value drivers that need to be managed
Growing customer and societal expectations for purpose-driven companies
The growth of ESG investing, which considers a company’s ESG profile in the investment process and allocates capital accordingly
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.
Images of NYSE Group, Inc. are used with permission of NYSE Group, Inc. Neither NYSE Group, Inc. nor its affiliated companies sponsor, approve of or endorse the contents of this program. Neither NYSE Group, Inc. nor its affiliated companies recommend or make any representation as to possible benefits from any securities or investments.