State Street Global Advisors (SSGA), one of the world’s largest investment managers, announced a series of new portfolio decarbonization-focused interim goals, forming part of the firm’s net zero investment commitment.
The introduction of the new goals follows SSGA’s joining of the Net Zero Asset Managers Initiative last year, and the firm’s commitment to achieve net zero in its investment portfolios by 2050.
The new goals include targets for net zero portfolio coverage, engagement, and financed emissions reductions. In carbon-intensive sectors, SSGA is aiming for 100% of its portfolio to be invested in assets that are either achieving net zero or aligned with net zero by 2040. The firm’s new engagement goal is to reach 90% of financed emissions aligned with a net zero pathway or the subject of engagement and stewardship actions by 2030. SSGA has also set a target to reduce financed Scope 1 and 2 emissions intensity by 50% at the portfolio level by 2030, on a 2019 baseline.
On the company’s website, Karen Wong, SSGA’s Global Head of ESG and Sustainable Investing, highlighted the firm’s approach to achieving its net zero investment goals. Wong said that SSGA will engage with its investee companies, prioritizing real economy decarbonization, and that the firm will choose to engage over divestment. Additionally, SSGA will partner with clients, offering climate investment knowledge, along with climate analytics and investment solutions. SSGA will also work with policymakers and key stakeholders, including index and data providers and standard setters, to address challenges to achieving net zero.
SSGA President and CEO Cyrus Taraporevela said:
“We must do our part to hold ourselves accountable for progress. Last April, we joined the Net Zero Asset Managers Initiative to ensure our portfolios reach net-zero greenhouse gas emissions by 2050 or sooner and set interim targets for 2030.”