State Street Launches Sustainability Engagement and Voting Service

State Street Global Advisors (SSGA), one of the world’s largest investment managers, announced the launch of its new Sustainability Stewardship Service, offering institutional clients with the ability to follow a sustainability-focused engagement and proxy voting framework.

According to SSGA, the new service was launched in response to institutional client feedback, seeking more engagement with companies on sustainability topics, and designed with input from clients prioritizing sustainability outcomes.

The new opt-in sustainability service is available globally to SSGA’s institutional separately managed account clients. The firm said that its European and UK fund ranges have already elected to have their proxy voting and engagement conducted in alignment with the service’s sustainability policies.

SSGA’s new sustainability service will incorporate sustainability considerations in proxy voting and engagement across four key areas, including Climate Change, Nature, Human Rights and Diversity.

Karen Wong, Global Head of Sustainable Investing and Asset Stewardship at State Street Global Advisors, said:

“In the ever-evolving sustainability landscape, investors need informed solutions to help them invest with confidence on behalf of their clients and members. The Sustainability Stewardship Service was developed in partnership with clients and will evolve through ongoing client input and research.”

Alongside the creation of the new service, SSGA announced the launch of a dedicated Sustainability Stewardship Service team, focused exclusively on carrying out the service’s Sustainability Policy. In addition to conducting research and industry engagement, the team will also carry out targeted dialogues with portfolio companies on the sustainability priorities on behalf of investors participating in the service.

SSGA announced that it has hired sustainable investment and engagement veteran Hannah Shoesmith to lead the team as Managing Director, Head of Sustainability Stewardship. Shoesmith joins SSGA from Schroders, where she served as Active Ownership, Head of Engagement. Prior to joining Schroders, she served as Director of Engagement for Hermes Investment Management.

Ann Prendergast, Head of EMEA, State Street Global Advisors, said:

“At SSGA, we believe in providing choice. Our aim is to ensure that all our clients have the opportunity to build investment portfolios matched to their goals and preferences.”