State Street has teamed up with S&P Global Trucost to enhance environmental, social and governance (ESG) services to clients. The partnership brings together State Street’s ESG risk analytics and reporting capabilities and Trucost’s data intelligence on the risks and opportunities of climate change.
State Street will offer its clients the opportunity to access Trucost’s environmental data through the reporting and analytics capabilities of State Street’s platforms. This functionality allows clients to access carbon footprint and other environmental data mapped to their portfolios, as well as increasingly influential Taskforce on Climate-related Financial Disclosure (TCFD) reporting features. Trucost, by partnering with State Street, will be able to more deeply integrate its climate data intelligence into clients’ decision making and reporting.
State Street recently launched ESG Risk Analytics to provide risk management, metrics and target reporting capabilities for TCFD on a platform that allows clients to measure their carbon footprint and intensity and offers clients monthly, quarterly and annual ESG reporting.
Brenda Lyons, executive vice president and global head of asset servicing products at State Street, says: “This partnership furthers our commitment to offer clients a full complement of ESG analytics and reporting capabilities. Our ESG solutions, coupled with Trucost’s renowned climate data resources, allow State Street to deliver clients the critical data required to help them meet challenging global ESG regulatory guidelines and investor expectations.” said Brenda Lyons, executive vice president and global head of asset servicing products at State Street.
Among the recent findings leveraging Trucost data:
- Major global companies could face up to US$283 billion carbon pricing costs, with 13% earnings at risk, by 2025 under a high carbon price scenario.
- Major global companies are on track for >3ºC warming, falling 72% short of required emissions reductions to achieve the Paris Agreement.
- About 66% of major global companies have at least one asset at high risk under the high impact climate change scenario in 2050. The greatest risk comes from water stress and wildfire.
- For most business activities, the largest proportion of the carbon footprint is concealed in supply chains or in the product use and disposal phase. In the healthcare sector, upstream supply chain emissions account for almost 65% of the sector’s total carbon footprint. For the consumer discretionary sector, which includes car manufacturing, almost 80% of the sector’s carbon footprint comes from the downstream use of products by customers.
- About 49% of revenues of major global companies are generated in business activities that support the United Nations Sustainable Development Goals.
- About 31% of revenues of major global companies are aligned with the EU Taxonomy for Sustainable Activities.