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State Street Releases Vision Report on Trends in Sustainable Investing

^{Published on 2010-10-20 09:40:41 - Market Wire}
 

BOSTON--([ BUSINESS WIRE ])--State Street Corporation (NYSE: STT), one of the world's leading providers of financial services to institutional investors, today released a new Vision Focus report on sustainable investing. Entitled aSustainable Investing: Positioning for Long-Term Success,a the report leverages new research by State Street Global Advisors (SSgA), the investment management business of State Street, to examine the growing impact of environmental, social and governance (ESG) concerns on the investment decisions of institutional investors.

"By taking steps to align themselves with this trend now, institutional investors may be better positioned to achieve long-term goals."

World population growth, climate change and a range of other catalysts are transforming sustainability into aa material issue for companies and investors alike,a the report states.

aWith global business and investing moving toward a more sustainable model, institutional investors need to position themselves for a future that may look dramatically different from the past,a said Chris McKnett, vice president of ESG investing at SSgA. aBy taking steps to align themselves with this trend now, institutional investors may be better positioned to achieve long-term goals.a

Once viewed as a marginal investing afad,a ESG investing is gaining momentum as global macro-trends increasingly point to a asustainability crisisa taking place around the world, the report states. aMany investors have called for more opportunities to incorporate ESG factors into their portfolios, prompting investment managers to enhance their product and service offerings.a

The report is a bridge to research findings outlined in a new SSgA study, scheduled to be released later this year. The 2010 study is an update to research conducted by SSgA in 2008. While the 2008 study suggested a growing importance for ESG-related investment considerations, the new study goes a step further by examining ESG in bear market periods, and found that, in general, high-scoring ESG companies suffered less during the 2008-2009 downturn.

In addition, the new research found that the magnitude of protection enjoyed by companies with strong ESG practices increased at the same time as the largest market declines occurred.

According to the Vision report, the global financial crisis contributed to greater awareness of ESG issues by spotlighting the need for amore stringent corporate governance and disclosure requirements to help protect the interests of investors.a

aThe new emphasis on sustainability is changing the rules of the institutional investment world,a continued McKnett. aAs ESG factors are increasingly mandated by investors, those companies with favorable ESG ratings are likely to become the preferred holdings.a

The Vision report reviews the development of ESG investing from the early focus on exclusionary screening of companies whose products or services were deemed inconsistent with an investora™s values, to todaya™s more proactive approach of incorporating ESG factors into the investment decision-making process. With more in-depth analysis of ESG data and ratings, the report states, aTodaya™s sustainable investor is intent on identifying companies expected to outperform over the long term based on their practices of embracing the concept of sustainability in the operation and management of their enterprises.a

State Streeta™s Vision Series addresses key trends and developments impacting the financial services industry. Previous reports have focused on pensions, exchange traded funds, asset allocation and sovereign wealth funds. To download a copy of this Vision Focus report or others in State Streeta™s Vision series of in-depth reports, please visit [ www.statestreet.com/vision ].

About State Street

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment management, research and trading, and investment servicing. With $20.2 trillion in assets under custody and administration and $1.9 trillion in assets under management at September 30, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide.For more information, visit State Streeta™s website at [ www.statestreet.com ].

The statements and opinions expressed are as of 10/20/2010 and are subject to change at any time, based on market and other conditions. State Street cannot guarantee the accuracy or completeness of any statements or data. These views may not be relied upon as investment advice or an offer for a particular security.