State Street to Establish First ESG Securities Lending Commingled Cash Collateral Reinvestment Strategy
April 14 2021 - 9:45AM
Business Wire
State Street Corporation (NYSE: STT) today announced its
intention to establish its Agency Lending Program’s first
Environmental, Social, and Corporate Governance (ESG) aware
commingled cash collateral reinvestment strategy. The Agency
Lending team of State Street Global Markets has partnered with
State Street Global Advisors, the asset management business of
State Street Corporation, to provide securities lending clients
with a commingled cash collateral reinvestment strategy that
follows short-term investment guidelines, while considering
R-FactorTM, a proprietary ESG scoring system as a component in
making its investment decisions, to the extent consistent with
applicable law.
“The continued rise in interest in ESG principles across markets
underscores client appetite for their securities lending strategies
to work in synergy with their ESG strategies,” said Nadine Chakar,
executive vice president and head of Global Markets at State Street
Global Markets. “This move builds on State Street’s commitment to
leadership and innovation in applying ESG principles to cash
reinvestment for securities lending.”
The strategy is currently available only to retirement plan
clients that participate in State Street’s Agency Lending Program,
and not otherwise available to the public.
“The groundswell of ESG support among the institutional lender
and beneficial owner community in recent years has given rise to a
multiplicity of related products, but the product category for
ESG-aware, commingled cash reinvestment funds remains untapped,”
said Francesco Squillacioti, global head of client management –
securities finance at State Street Global Markets. “This launch
affords State Street’s institutional client base yet another
opportunity to express their focus on ESG and reaffirm their
attention to socially-responsible yet prudent investing through a
securities lending program.”
“We are excited to partner with State Street Global Markets to
provide investment management services for this ESG-aware
securities lending commingled cash collateral reinvestment
strategy. As a firm, State Street Global Advisors has firmly
committed to ESG principles,” said Pia McCusker, senior managing
director and global head of cash management at State Street Global
Advisors. “Partnering with State Street Global Markets, one of the
largest securities lending cash collateral managers in the world,
is a natural and logical combination and one that supports
institutional investors’ ESG goals.”
State Street has been actively involved in the ESG space for a
number of years, including recently announcing that Rick Lacaille,
formally the chief investment officer for State Street Global
Advisors, will provide enterprise-wide leadership of the company’s
ESG solutions, services and thought leadership across all of State
Street’s businesses. The bank also recently introduced enhancements
to its ESG Solutions, ESG Risk Analytics, which now provides
clients the ability to address new global regulatory reporting
requirements through a single platform.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $38.8 trillion in assets
under custody and/or administration and $3.5 trillion* in assets
under management as of December 31, 2020, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of December 31, 2020 includes
approximately $75 billion of assets with respect to SPDR® products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
© 2021 State Street Corporation - All Rights Reserved
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Brendan Paul Bpaul2@statestreet.com +1 401 644 9182
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