SSGA launches trio of climate equity funds
Targeting Paris-aligned cuts in carbon emissions
State Street Global Advisors has launches three funds targeting Paris-aligned reductions in carbon emissions, investing across global, US and European equities.
The State Street Climate Equity range allocates capital towards companies benefiting from low-carbon technologies, and those with a strong and comprehensive climate change strategy.
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State Street's Sustainable Climate US, World and European Equity funds will employ a set of "norms based and business involvement" exclusions, as well as five different climate metrics; carbon intensity, embedded fossil fuel reserves emissions, percentage of brown revenue, percentage of green revenue and adaptation score on climate change preparedness.
For European investors, these funds are accessible via a Luxembourg SICAV.
EMEA head of ESG investment strategy at SSGA Carlo Funk said: "Climate change is often referred to as a slow-burning crisis.
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"The growing awareness and concern will further drive the transition to a low-carbon economy and the time to act is now.
"We are therefore very excited to launch a strategy that can significantly improve the carbon profiles of client portfolios utilising different climate metrics.
"The model finds the optimal trade-off between improving the carbon profile while staying in line with a tracking error target, as well as keeping to country and sector deviation constraints."
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