State Street Launches Global Carbon Asset Servicing Solution
May 08 2023 - 9:30AM
Business Wire
New solution brings carbon asset fund administration and
depositary services to asset managers, asset owners and other
financial institutions to facilitate the integration of
carbon-related assets into portfolios
Depositary services in the European Union1 will provide the
safekeeping of assets including monitoring cash flows, cash
reconciliation, timely settlements and follow through of any
discrepancies in transactions
State Street Corporation (NYSE: STT) announced today the
introduction of the State Street Carbon Asset Servicing Solution
and depositary services that allows asset managers, asset owners
and other financial services institutions globally the ability to
integrate carbon-related assets into their portfolios as the demand
for the asset class continues to grow.
Historically, the carbon assets market has been made up of many
disparate components and manual processes. In utilizing the new
carbon asset services solution, State Street seeks to help clients
navigate this complex environment, and simplify the management of
carbon assets. Additionally, clients accessing the solution will be
able to incorporate carbon assets into both existing ESG and
non-ESG portfolios, leveraging State Street’s back and
middle-office capabilities.
State Street’s Carbon Asset Servicing Solution provides a range
of fund administration and depositary services, including
recordkeeping, NAV calculation, reporting and other oversight
functions. With the adoption of this solution, clients can now
leverage State Street’s full range of asset services for this
growing carbon asset class.
“The carbon assets market is growing dramatically—as the total
traded value for compliance and voluntary credits reached a record
€865 billion in 20222 and is expected to grow fifteen-fold by 2030
as new regulations in major regions push corporations globally to
report on and offset their greenhouse gas emissions3,” said Phil
Kim, global head of ESG Product at State Street. “Our new carbon
asset servicing solution will help clients gain access to this
emerging asset class so they can directly hold carbon allowances
and credits and trade them as they would other products, and
ultimately look to maximize the potential of their investment
portfolios using State Street’s fund administration expertise.”
By providing comprehensive fund administration and
first-of-its-kind depository services required in the European
Union, State Street’s Carbon Asset Servicing Solution provides
asset managers, asset owners and other financial institutions
seamless integration of carbon assets into State Street’s core
investment servicing offering -- coordinating multiple parties’
data, including top carbon registries, exchanges and cash agents,
allowing clients to gain exposure to this growing asset class via
spot and derivatives markets.
“As businesses continue to move toward models that reduce
greenhouse gases and emission standards increase in scale and
magnitude, the price of carbon offsets are likely to increase.
Investing in carbon assets can help fund the energy transition and
diversify portfolios, all while offering the opportunity for
investment returns,” concluded Kim.
Please click here to learn more about State Street’s Carbon
Asset Servicing Solution.
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 $37.6 trillion in assets
under custody and/or administration and $3.6 trillion* in assets
under management as of March 31, 2023. State Street operates
globally in more than 100 geographic markets and employs
approximately 43,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of March 31, 2023 includes
approximately $59 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
© 2023 State Street Corporation - All Rights Reserved
5672764.1.1.GBL.RTL
1 Depositary service currently only required for EU clients 2
Refinitiv, “Carbon Markets Year In Review 2022”, February 2023 3
McKinsey, “Putting carbon markets to work on the path to net zero”,
October 2021
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version on businesswire.com: https://www.businesswire.com/news/home/20230508005423/en/
Media: Ed Patterson epatterson@statestreet.com +1 404 213
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