BOSTON & LONDON--(BUSINESS WIRE)--State Street (NYSE:STT) today announced it has enhanced its portfolio of environmental, social and governance (ESG) offerings with the launch of ESGXSM, a new analytics tool designed to provide information to help clients bring transparency and standardization to their ESG investing. State Street also announced today agreements with new data providers, including Arabesque, to complement its existing agreement with TruValue Labs, announced earlier this year. ESGX offers clients the ability to receive their ESG data sets from any or all of the data providers State Street is collaborating with.
Developed by State Street Global ExchangeSM, State Street’s data and analytics business, ESGX will provide clients with a web platform through which they can assess ESG factor exposure in their portfolios, such as a company’s carbon footprint, the type of labor used in a supply chain, and board diversity statistics. Clients will also have the ability to review reports, which can be updated daily, that show how the ESG profile of a portfolio has evolved over time.
“Having a view into a company’s non-financial profile is increasingly important to the growing number of investors and regulators who understand the impact of ESG factors on risk and returns,” said John Plansky, global head of State Street Global Exchange. “The root of firm valuation is the disclosure of relevant information, and it’s critical that we bring new technologies to market that can provide added transparency for clients looking to better understand their investment portfolios through an ESG lens.”
Global ESG assets under management climbed to almost $23 trillion in 2016, a 25 percent increase from 20141. Yet, according to a recent State Street study, while traditional obstacles to ESG investing are fading, the one significant barrier that remains is the lack of transparent, standardized and quality data.
Included in the new ESGX analytics platform, State Street’s ESG Solutions business will offer Arabesque S-Ray™, an algorithm-based technology that analyzes the sustainability performance of the world’s largest listed corporations, using self-learning quantitative models and data scores as a risk management and compliance measure.
“We believe ESG data provides a new dimension to investing, giving investors more information than ever before about the DNA of a company,” said Andreas Feiner, head of ESG Research at Arabesque. “We are delighted to be collaborating with State Street to offer our proprietary analytics tool.”
“Investors want to perform well while being responsible, and they need access to ESG data to do that effectively,” said Mark McDivitt, head of ESG Solutions at State Street Global Exchange. “We’re consistently hearing from clients that they need reliable ways to measure exposure to non-financial ESG factors. The combination of our ESGX analytic tool and these ESG data options will give them access to data and a range of insights that hasn’t previously existed.”
Please click here to learn more about State Street’s ESGX analytics platform and ESG Solutions.
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 $32.1 trillion in assets under custody and administration and $2.67 trillion* in assets under management as of September 30, 2017, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.
*AUM reflects approx. $36 billion (as of September 30, 2017) with respect to which State Street Advisors Funds Distributors, LLC (SSGAFD) serves as marketing agent; SSGAFD and State Street Global Advisors are affiliated.
State Street Global Exchange℠ and State Street Associates® are trademarks of State Street Corporation (incorporated in Massachusetts) and are registered or have registrations pending in multiple jurisdictions. This document and information herein (together, the “Content”) is subject to change without notice based on market and other conditions and in any event may not reflect the views of State Street Corporation and its subsidiaries and affiliates (“State Street”). The Content provided is for informational, and/or marketing purposes only and it does not constitute investment research or investment, legal, or tax advice. The Content provided has been prepared and obtained from sources believed to be reliable at the time of preparation, however it is provided “as-is” and State Street makes no guarantee, representation, or warranty of any kind including, without limitation, as to its accuracy, suitability, timeliness, merchantability, fitness for a particular purpose, non-infringement of third-party rights, or otherwise. State Street disclaims all liability, whether arising in contract, tort or otherwise, for any claims, losses, liabilities, damages (including direct, indirect, special or consequential), expenses or costs arising from or connected with the Content. The Content provided is not, nor should be construed as any offer or solicitation to buy or sell any product, service, or securities or any financial instrument, and it does not constitute any binding contractual arrangement or commitment for State Street of any kind. The Content provided is not intended for retail clients, nor is intended to be relied upon by any person or entity, and is not intended for distribution to or use by any person or entity in any jurisdiction where such distribution or use would be contrary to applicable law or regulation. No permission is granted to reprint, sell, copy, distribute, or modify the Content in any form or by any means without the prior written consent of State Street.
This information is only for general informational purposes in connection with exploratory conversations and it does not constitute investment research or investment, legal, or tax advice from State Street Corporation and its subsidiaries and affiliates (“State Street”). This information is not an offer or solicitation to buy or sell any product from State Street, and it does not constitute any binding contractual arrangement or commitment of any kind. The offer or sale of any of these products and services in your jurisdiction is subject to the receipt by State Street of such internal and external approvals as it deems necessary in its sole discretion.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for decisions based on such information and it should not be relied on as such.
State Street Corporation, One Lincoln Street, Boston, MA 02111-2900.
© 2017 State Street Corporation – All Rights Reserved
1 Global Sustainable Investment Alliance 2016 Global Sustainable Investment Review; http://www.gsi-alliance.org/wp-content/uploads/2017/03/GSIR_Review2016.F.pdf