Solutions
Total ESG
The incorporation of environmental, social and governance (ESG) factors into the investment process is quickly becoming one of the most important themes in the investment industry.
As long-term stewards of our clients’ assets, we’re committed to providing risk management tools that help clients navigate important industry changes and regulatory requirements. Our total ESG product provides streamlined data and risk management analytics for clients in all stages of their ESG journeys amidst the rapidly evolving sustainability measurement landscape.
Managing ESG data
Working with multiple vendors, sorting data and mapping it to thousands of holdings across asset classes and investment strategies is an uphill task. Total ESG is a centralized portfolio management solution combining immediate fund look-through (sourced either from State Street or customizable, external sources), multiple best-in-class ESG data sets, thought leadership across various sustainability topics, and investment subject-matter expertise.
When it comes to sustainability, we are focused on improving the quality and comparability of data across sectors and industries so clients can achieve transparency around their holdings, optimize their portfolios, and spend more time on revenue-generating activities.
Measuring risks and opportunities
With growing investor interest in ESG integration, we developed ESG Analytics as a complement to our existing full-service risk management tools. Our Total ESG solution can help clients establish baseline metrics, identify risks and opportunities customized to their strategies, set targets, take action on those targets, and monitor progress over time. Our attribution analytics tools can also help clients easily attribute performance versus their targets (or investment benchmarks) with plug-and-play dashboards to monitor, track and analyze changes over time.
Fulfilling regulatory obligations
The need to disclose ESG metrics on portfolios for regulatory purposes has introduced operational strains on organizations. We can manage internal and external reporting requirements with powerful and interactive business intelligence tools, including value-at-risk, scenario analysis and other climate analytics to support regulations such as the EU Sustainable Finance Disclosure Regulation (SFDR), the various iterations of Task Force on Climate-related Financial Disclosures (TCFD), and more.
Ensuring compliance and reducing greenwashing risk
Amid growing risks around greenwashing and the potential costs of regulatory non-compliance, our post-trade investment compliance system now provides automated, independent oversight embedded into the investment process. Our cost-effective, turnkey solution allows for customized rule-setting and alerts (with a preset rules library for major regulations also available), enables comparison versus peers, and ensures adherence to ESG mandates and voluntary commitments.
Creating sustainable portfolios
Investors are always looking for innovative ways to enhance how they measure ESG factors, align investments to their values or gain a deeper understanding of how to incorporate sustainability factors into their investments. Our dedicated team of subject-matter experts are available to act as an extension of our clients’ operations — ensuring clients are using our tools and data optimally, and most effectively navigating the evolving ESG landscape in a way that fits their unique goals. We also provide support for emerging asset classes in investors’ portfolios, including carbon asset fund administration and depositary services.
Generating ongoing insights
We have partnerships with some of the world’s leading academics focused in areas such as investor behavior, asset allocation, ESG investing and private equity. Our dedicated ESG research team, tailored ESG workshops and proprietary ESG indicators give you powerful insights that can help you further optimize portfolios and make more informed decisions.
ESG for our business and communities
As a corporation, we apply the above sustainable principles and practices to inform our long-term business strategy, and drive engagement with all our stakeholders — investors, clients, employees and communities — on issues of environmental sustainability, inclusion and diversity, and resilient markets, economies and societies. As a large asset manager, we encourage our portfolio companies to adopt more sustainable practices, and look to embed ESG across our own business to build a more resilient and inclusive future.
2022 Sustainability Bond Framework
Why State Street
Working with State Street, sustainability can be quickly embedded into your investment process. Our managed service model combined with our multi-vendor, best-in-class data sets — chosen through careful diligence of dozens of vendors — provide you with streamlined, cost-effective solutions across the investment lifecycle, helping you capture insights from multiple data sources, constantly manage risks, and optimize investment decision-making. Our partnerships with leading academics, active relationships with regulators and deep bench of subject-matter experts help our global clients build confidence in their ability to meet current and future sustainability requirements.
