Advancing racial equity
A just and equitable future
Ronald P. O’Hanley
Chairman and Chief Executive Officer
State Street believes in fostering greater opportunity for our clients, colleagues, communities and other stakeholders. Inclusion, diversity and equity are critical to generating value for our clients and shareholders, attracting and developing a vibrant and talented workforce, and deepening our impact in the communities in which we live and work. We are proud to apply our purpose: “To help achieve better outcomes for the world’s investors and the people they serve,” to this important work.
The importance of impact
Paul Francisco
Chief Diversity Officer
My own experience taught me that belief, and support of communities, only comes when trust and ownership is involved in the decision-making process. At State Street, we know that we can do this by impacting racial equity through our business practices, and also by investing in talent. We are committed to this and that is why we have launched a number of strategies to help advance racial equity. These include our 10 Actions to Address Racism and Inequality, an independent Civil Rights Audit, and our partnership with the Management Leadership for Tomorrow (MLT), Racial Equity at Work Certifications – all these efforts are part of our journey to become an industry leader in addressing inequities. Together, we can build a more resilient and equitable future.
Commitment to civil rights
We engaged a Washington, DC-based national civil rights law firm, Relman Colfax, to conduct an audit focused on our products and services and whether our business policies, practices and products/services have advanced Civil Rights for protected classes in the US and/or how they might in the future. The audit has provided recommended actions for us to consider moving forward to establish State Street as an industry leader in advancing civil rights and racial equity, and suggested we put mechanisms in place to monitor effectiveness.
We commend State Street for its decision to conduct [a] Civil Rights Audit and its willingness to hold a mirror up to itself… The fact that this Report identifies places where the Company is falling short does not reflect doubt on our part that State Street can or wants to be a leader in advancing civil rights and racial equity.
John P. Relman
Managing Partner, Relman Colfax PLLC
MLT Black Equity at Work Bronze Certification
Led by Management Leadership for Tomorrow (MLT), the Black Equity at Work Certification is a first-of-its-kind, clear standard and roadmap for employers committed to a systematic, results-oriented approach to Black equity in the workplace. With this designation, we are the first Global Systemically Important Financial Institution (GSIFI) to earn this designation.
MLT Hispanic Equity at Work Bronze Certification
We are the first GSIFI to earn the Management Leadership for Tomorrow (MLT) Hispanic Equity at Work Bronze Certification. This first-of-its kind certification sets clear, measurable standards for achieving Hispanic equity internally and for contributing to Hispanic equity in society.
Partnerships with diverse firms to underwrite debt
We announced our 10th consecutive engagement with diverse underwriters, and most recently issued an aggregate principal amount of US$1 billion of senior debt and US$500 million of senior subordinated debt. All five broker-dealers are owned by diverse groups and, collectively, have underwritten 40 percent of the securities in the issuance.
US$100 million program for minority depository institutions and community development financial institutions
Our program will provide low-cost, stable deposit funding to minority depository institutions (MDIs) and community development financial institutions (CDFIs). Both MDIs and CDFIs support low-to-moderate income communities through lending, affordable housing and workforce development.
Sustainability Bond Report
We have allocated approximately US$47 million in proceeds across our supplier diversity program and a number of Inclusion, Diversity and Equity program partnerships.
State Street Global Advisors Asset Stewardship Report
Companies that fail to oversee risks and opportunities related to diversity, equity and inclusion can be exposed to material risks including reputational, strategic, financial, regulatory and human capital risks. Our stewardship efforts in this area seek to encourage improved corporate disclosure and data on companies’ DEI practices.
State Street Foundation
State Street Foundation is committed to creating more equitable communities by investing in high-impact nonprofit and charitable organizations reducing gaps in educational achievement and employability due to race, ethnicity and socioeconomic status. We have engaged independent consulting partners in EMEA and APAC to help us ensure our global grantmaking reflects our commitment to combatting racism and inequality in other countries where State Street operates.
Sustainability report
We believe ESG topics are important to consider in delivering value to clients and other stakeholders. Our sustainability report details our participation in a range of industry partnerships and initiatives to engage and collaborate on diversity, equity and inclusion topics.
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