New Tools Help Clients Measure Environmental, Social, and Governance
Risks, Bring Greater Transparency to Their Portfolios’ ESG Profiles
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.
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1Global Sustainable Investment Alliance 2016 Global
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State Street Corporation
Brendan Paul, + 1 617-662-2903
BPaul2@StateStreet.com
@StateStreet
Source: State Street Corporation