State Street and S&P Global Trucost Announce ESG Strategic Engagement
April 19 2021 - 11:00AM
Business Wire
Data show Seamless Management of Climate Risk and Opportunity
Service Offering Available to State Street Clients Totaling More
Than US$40 Trillion in Assets
State Street (NYSE:STT) today announced a strategic engagement
with S&P Global Trucost that brings together State Street’s
newly announced ESG Risk Analytics and Reporting capabilities and
Trucost’s highly regarded climate data and analytics. The agreement
will allow State Street to overlay Trucost’s data intelligence on
the risks and opportunities of climate change to build on State
Street’s existing client-focused ESG services, offering available
intelligence solutions to its clients holding assets totaling more
than US$40 trillion.
As a result of this engagement, State Street will offer its
clients the opportunity to access Trucost environmental data
through the reporting and analytics capabilities of State Street’s
platforms. This functionality allows clients to access carbon
footprint and other environmental data mapped to their portfolios,
as well as increasingly influential Taskforce on Climate-related
Financial Disclosure (TCFD) reporting features, applying Trucost’s
Carbon Earnings at Risk, Paris Alignment, and Physical Risk data
intelligence. By partnering with State Street, Trucost will be able
to more deeply integrate its climate data intelligence into
clients’ decision making and reporting.
“This partnership furthers our commitment to offer clients a
full complement of ESG analytics and reporting capabilities. Our
ESG solutions, coupled with Trucost’s renowned climate data
resources, allow State Street to deliver clients the critical data
required to help them meet challenging global ESG regulatory
guidelines and investor expectations,” said Brenda Lyons, executive
vice president and global head of asset servicing products at State
Street.
“We are excited to partner with State Street to accelerate the
awareness of climate risks and opportunities,” said Dr. Richard
Mattison, Chief Executive Officer of S&P Global Trucost and
Chief Product Officer of ESG at S&P Global. “Market frameworks
are being developed across many jurisdictions and S&P Global
provides integrated approaches for market participants to manage
and report on climate and ESG impacts.”
Recent findings leveraging Trucost data include:
- Major global companies could face up to 283 USD billion carbon
pricing costs, with 13% earnings at risk, by 2025 under a high
carbon price scenario.
- Major global companies are on track for >3ºC warming,
falling 72% short of required emissions reductions to achieve the
Paris Agreement.
- 66% of major global companies have at least one asset at high
risk of physical risk under the high impact climate change scenario
in 2050. The greatest risk comes from water stress and
wildfire.
- For most business activities, the largest proportion of the
carbon footprint is concealed in supply chains or in the product
use and disposal phase. In the Health Care sector, upstream supply
chain emissions account for almost 65% of the sector’s total carbon
footprint. For the Consumer Discretionary sector, which includes
car manufacturing, almost 80% of the sector’s carbon footprint
comes from the downstream use of products by customers.
- 49% of revenues of major global companies are generated in
business activities that support the United Nations Sustainable
Development Goals (SDGs).
- 31% of revenues of major global companies are aligned to the EU
Taxonomy for Sustainable Activities.
State Street recently launched ESG Risk Analytics to provide
risk management, metrics and target reporting capabilities for Task
Force on Climate-related Financial Disclosures (“TCFD”) on a
platform that allows clients to effectively measure their carbon
footprint and intensity and offers clients monthly, quarterly and
annual ESG reporting. The suite of ESG solutions also provides
clients regulatory support and data coverage for the EU Sustainable
Finance Disclosure Requirements (“SFDR”). With the Trucost
engagement, State Street Risk Analytics will also bring clients
support for UN Sustainable Development Goals (SDG), EU Taxonomy,
and Sector-Specific Revenue metrics and will expand asset class
coverage to include Sovereigns.
“For investment managers and asset owners globally, the demand
for ESG reporting and data solutions continues to grow. As this
need increases, our ESG Risk Analytics tools, combined with
Trucost’s climate data services, are uniquely positioned to help
clients meet the evolving global regulatory environment,” said Rick
Lacaille, senior investment advisor and global ESG lead at State
Street.
As interest from investors continues to grow for ESG
integration, State Street’s suite of ESG solutions paired with
State Street Alpha℠, the company’s open architecture front-to-back
investment servicing platform, brings asset owners and investment
managers an integrated, fully automated, end-to-end experience
while meeting investment and reporting needs across asset
classes.
To learn more about State Street’s industry leading ESG
Solutions, click here.
About State Street
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 $40.3 trillion in assets
under custody and/or administration and $3.6 trillion* in assets
under management as of March 31, 2021, 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 March 31, 2021 includes
approximately $60 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
About S&P Global
S&P Global (NYSE: SPGI) is the world's foremost provider of
credit ratings, benchmarks and analytics in the global capital and
commodity markets, offering ESG solutions, deep data and insights
on critical economic, market and business factors. We've been
providing essential intelligence that unlocks opportunity, fosters
growth and accelerates progress for more than 160 years. Our
divisions include S&P Global Ratings, S&P Global Market
Intelligence, S&P Dow Jones Indices and S&P Global Platts.
For more information, visit www.spglobal.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210419005606/en/
State Street Contact: Ed Patterson
epatterson@statestreet.com +1-404-213-3106
S&P Global Contact: Farhan Husain
Farhan.husain@spglobal.com
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