State Street Enhances ESG Risk Analytics

ESG Matters in Fixed Income

State Street introduced an enhancement to its ESG Solutions, ESG Risk Analytics, which provides clients with the ability to address new global regulatory reporting requirements. Through a single platform, this data coverage brings clients the ability to cover most Principle Adverse Impact (“PAI”) and disclosure requirements.

ESG Risk Analytics is designed 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. In addition, State Street’s suite of ESG solutions will be providing regulatory support and complete data coverage for the EU Sustainable Finance Disclosure Requirements (“SFDR”).

“ESG considerations are increasingly at the forefront of decision-making for investment managers and asset owners and there’s a growing demand for solutions that will provide the necessary data, risk analytics and reporting capabilities at scale,” said Rick Lacaille, senior investment advisor and global ESG lead at State Street. “We continue to support TCFD recommendations and with our new ESG Risk Analytics tools, we are bringing our clients a holistic solution that helps assess ESG portfolios, while also enabling added transparency to meet the evolving global regulatory environment.”

“Through our multi-vendor ESG analytics reporting, State Street clients have the ability to address the new regulatory package of the EU action plan on sustainable finance, requiring financial market participants to disclose extensively their ESG metrics, performance and policies, as well as to integrate ESG considerations in their risk management and investment decisions processes,” added Brenda Lyons, executive vice president and global head of product at State Street.

The 2020 TCFD Status Report indicated the number of organizations expressing support for the TCFD has grown more than 85%, reaching 1,500+ organizations globally, including more than 1,340 companies with a market capitalization of $12.6 trillion and financial institutions responsible for assets of $150 trillion.

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 asset managers an integrated, fully automated, end-to-end experience while meeting investment and reporting needs across asset classes. This fully integrated offering through State Street Alpha will be available to clients later this year.

Source: State Street

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