State Street Global Advisors
State Street Global Advisors is an international investment management firm with 29 offices globally across the Americas, Asia-Pacific, Europe, and the Middle East and Africa. It joined the Net Zero Asset Managers Initiative on 20 April 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
14% of total AUM (USD $582.7 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Target(s):
Portfolio decarbonisation reference target
50% reduction in financed Scope 1 and 2 carbon emissions intensity by 2030, relative to 2019 baseline (based on emissions intensity attributed using EVIC, adjusted for EVIC inflation)
Engagement threshold target
90% of financed emissions in material sectors are either assessed as net zero, aligned with a net zero pathway, or the subject of direct or collective engagement and stewardship actions.
Portfolio coverage target
Increase AUM invested in assets in material sectors that are achieving net zero or aligned to net zero to 100%
Baseline year performance for the target metric(s):
We are currently in the process of calculating baseline performance for our targets, and will disclose these when the process is complete.
GHG scopes included:
Our emissions reduction target will currently include only Scope 1 and Scope 2 emissions; Scope 3 emissions to be phased in over time when disclosure and methodology improve sufficiently.
Methodology:
Net Zero Investment Framework
Scenario(s):
We have assessed multiple net zero pathways (including IPCC P1, P2, P3 scenarios, One Earth Climate Model, IEA Net Zero Emissions by 2050), and our overall emissions reduction target of 50% is broadly in-line with emission reductions indicated by these pathways. We will provide additional information on specific pathways being used, should we pursue region or sector-specific target-setting in future.
Additional information
Proportion of AUM committed:
Intended to drive credibility and accountability, our approach is based on considerations of clients, methodology robustness and data availability, as well as our business model.
1.) We include assets from clients who have adopted net zero targets or similar climate commitments or may be reasonably expected to do so.
2.) We consider portfolios invested in equities and corporate fixed income. These asset classes represent 68.5% of AUM, of which 20.5% are included in our interim targets.
3.) We include index portfolios (78.2% of AUM) that have a climate component currently, or may be reasonably expected to adopt a climate objective.
As we work to increase our in-scope assets to 100% over time, we intend to engage with clients to encourage them to adopt net zero goals and consider strategies that are aligned with net zero, where appropriate. In addition, we will look to expand coverage to other asset classes (e.g., sovereign bonds, cash) where we have material AUM, as clear methodologies develop in the industry.
Policy on coal and other fossil fuel investments:
We believe engagement and stewardship efforts to be the most effective tool to achieve long-term progress on energy transition. We will consider developing a science-based energy transition policy in the long run.
The AUM is as of 31/12/21.
Further information:
Target setting: We are currently studying the prevalent public methodologies and external vendor data to assess the trade-offs in coverage and quality. We will set quantified targets for the years 2025 and 2030, based on a linear approach to achieve the 100% by 2040 goal. Our emissions reduction target will currently include only Scope 1 and Scope 2 emissions; Scope 3 emissions will be phased in over time when disclosure and methodology improve sufficiently.
Further information in relation to our targets and net zero strategy will be found here.