As a reliable and responsible financial partner, we’re committed to creating economic value for our clients, communities and society in general. We collaborate with clients to provide solutions that solve their business challenges and achieve their financial goals. We also use our investing experience to benefit the communities where we operate.
If you’re interested in investing your assets in an environmentally or socially responsible way, turn to us for experience. Clients trust us to manage $168.4 billion* in ESG, in three ways:
- Design and implement funds with explicit ESG mandates
- Work with investment teams to integrate ESG into processes that improve investment outcomes
- Produce ESG research and thought leadership
*Estimated figure as of December 31, 2015
Most ESG assets we manage are positively or negatively screened funds in separately held accounts. Our clients direct the environmental or social priorities through these funds.
Investing for Economic and Social Benefit
We use our expertise to make investments with social benefits, including US affordable housing projects and our commitment to responsible investing.
Since 1991, we’ve invested more than $1 billion in tax-advantaged investments to drive our socially and environmentally responsible business objectives. We currently hold $719 million in low-income housing tax credits (as of December 31, 2015) that provide equity investments to developers of low-income housing. Access to decent, safe housing helps improve outcomes for US low-income individuals. And the program financially benefits private investors, mostly through low-income housing tax credits.
UN Principles for Responsible Investment (PRI)
In 2014, State Street Global Advisors (SSGA) became a signatory to the UN Principles for Responsible Investment. By improving our understanding of the risks and opportunities for ESG factors and educating our clients about them, we complement our commitment to this powerful global initiative. We encourage our clients to carefully consider ESG factors when determining their investment objectives. ESG factors can often enhance a company’s reputation, operational risks and costs, as well as efficiency and productivity, leading to growth in shareholder value.
Through our multi-year involvement in Project Delphi, an SSGA-sponsored initiative that developed from our relationship with CSR Europe, we’re researching ESG and the impact these factors have on our investment portfolios. With the support from partners at leading academic institutions, like Massachusetts Institute of Technology and Harvard University, we use our advisory services to analyze the impact of ESG factors on portfolios. We’re also designing investment strategies to help our clients understand how socially responsible investing practices can mitigate exposure to unexpected factors and improve long-term performance.