State Street Global Advisors: Our Target - Net Zero
As signatory of the Net Zero Asset Manager initiative, State Street Global Advisors has submitted the following three targets for its in-scope assets, based on the IIGCC Paris Aligned Investment Initiative’s Net Zero Investment Framework:
- Portfolio coverage - Increase AUM invested in assets in material sectors (carbon-intensive sectors) that are (i) achieving net zero or (ii) aligned to net zero to 100% by 2040, starting from $582.7 billion or 14.1% of our total AUM today.
- Engagement - Ensure that 70% of financed emissions are net zero, aligned with a net zero pathway, or the subject of direct or collective engagement and stewardship actions and increase this ratio to at least 90% by 2030.
- Emission reduction - Reduce financed Scope 1+2 carbon emissions intensity 50% by 2030 relative to 2019 baseline at portfolio level.
Our mission is to invest responsibly to enable economic prosperity and social progress. And by establishing our net zero targets, we are playing our part in helping to deliver the goals of the Paris Agreement and ensure a just transition to the low-carbon economy.
What we are particularly proud of is our rigorous approach. Our primary lever is engagement with investee companies, clients, and market participants including policymakers and index vendors. To that extent, we have been investing in talent and data and are doubling the staff of the Engagement Team in 2022. 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. Through regular reporting, we will do so in all transparency.
We are reviewing our targets on a yearly basis and will revise them where needed. As methodologies and data calculations used in climate target setting are likely to evolve, so will our process. This is not a one-off exercise, but will set the pace for decades to come.
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Exp. Date: 30/05/2023