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State Street Global Advisors Launches Climate Equity Funds


London, 08 October 2020 State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the State Street Climate Equity Funds for investors looking to reduce climate risk in their portfolios.  

The new fund range is targeting Paris-aligned reductions in carbon emissions by reallocating capital towards companies benefiting from low-carbon technologies and those with a strong and comprehensive climate change strategy. The funds will employ a set of norms based and business involvement exclusions, as well as five different climate metrics to deliver on investors’ climate objectives, namely: carbon intensity, embedded fossil fuel reserves emissions, percentage of brown revenue, percentage of green revenue and adaptation score on climate change preparedness. The funds offer cost-efficient access to diversified global, US and European equity exposures. For European investors, these funds are accessible via a Luxembourg SICAV.

“Climate change is often referred to as a slow-burning crisis,” said Carlo Funk, EMEA Head of ESG Investment Strategy for State Street Global Advisors. “The growing awareness and concern will further drive the transition to a low-carbon economy and the time to act is now. We are therefore very excited to launch a strategy that can significantly improve the carbon profiles of client portfolios utilizing different climate metrics. The model finds the optimal tradeoff between improving the carbon profile while staying in line with a tracking error target, as well as keeping to country and sector deviation constraints.”

Alistair Byrne, Head of Pensions and Retirement Strategy, EMEA, added, “From increasing allocation to greener technologies by up to 300 percent, to reducing embedded fossil fuel reserves and brown revenue exposure by up to 90 percent with the aim to minimize the carbon intensity, these funds, as a core exposure for pension schemes and many investors, can truly help them move the dial on their journey in building sustainable portfolios for the future."

About State Street Global Advisors

For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With millions* in assets under management, our scale and global footprint provide access to markets and asset classes, and allow us to deliver expert insights and investment solutions. State Street Global Advisors is the investment management arm of State Street Corporation. * Assets under management were $2.51 trillion as of December 31, 2018. AUM reflects approx. $32.45 billion (as of December 31, 2018) with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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Michel Chau
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