Sustainable Investing Shifting Perspectives

Taking the Pulse of Asset Owners on Climate-Related Investing

We asked +300 EMEA-based asset owners why and how they are integrating climate into their decision-making. Here’s what they said.

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Asset owners around the globe are implementing changes to their investment processes to prepare for the growing risks related to the climate transition. However, just how they are reconfiguring their strategies differs from region to region.

This report is based on a survey of 330 EMEA-based senior professionals — half from the C-suite — working at asset owners and advisors, including pension funds, insurers, endowments, foundations, central banks, sovereign wealth funds, and consultancies. We carried out the research in April and May 2024. The professionals we surveyed were based in Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Kuwait, Luxembourg, the Netherlands, Norway, Qatar, Saudi Arabia, Sweden, Switzerland, the UAE, and the UK.

Dig Deeper

Our latest thought leadership explores in greater detail some of the key trends from the survey.

The Challenging Sustainable Investing Landscape

One Size Does Not Fit All.

Achieving New Frontiers

The Role of Bonds in Sustainable Investing.

Investing in the Future

Approaches to Climate Change in Portfolios.

Navigating Sustainable Investing

Regulation as a Driver of Opportunity and Risk.

Sustainability Stewardship Service

An Innovative Stewardship Offering for Clients Who Prioritize Sustainability Outcomes.

Learn More

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Marketing communication.

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This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.

Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those projected.

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio’s specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio’s ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

A “quality” style of investing emphasizes companies with high returns, stable earnings, and low financial leverage. This style of investing is subject to the risk that the past performance of these companies does not continue or that the returns on “quality” equity securities are less than returns on other styles of investing or the overall stock market.”

Actively managed funds do not seek to replicate the performance of a specified index. The Active Fundamental Climate Transition Equity Strategy is actively managed and may underperform its benchmarks. An investment in the Strategy is not appropriate for all investors and is not intended to be a complete investment program. Investing in the Strategy involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment.

Estimated and unaudited SSGA ESG assets under management as of March 31, 2024, as calculated by SSGA for ESG Accounts. SSGA defines an “ESG Account” as a client account (i.e., fund or separately managed account managed by SSGA) that utilizes an investment strategy that falls into one of the following three categories, which are not mutually exclusive:

Negative ESG Screen, as defined below
Positive ESG Screen, as defined below
Third-Party ESG Index, as defined below

1. Negative ESG Screen: A “Negative ESG Screen” (also known as an exclusionary screen) is a screen incorporated into the investment strategy utilized for the management of a portfolio that results in the exclusion from the portfolio of securities of issuers that fail to satisfy certain ESG criteria (e.g., because the issuers comprise part of a sector or industry). Negative ESG Screens include but are not limited to SSGA Point of View (“POV”) screens, norms-based screens, Socially Responsible Investing (SRI) screens, and screens provided by other third parties (including client-directed screens). Where a client’s investment agreement and/or investment guidelines specify, or the client otherwise communicates to SSGA that the application of a negative screen is to satisfy a purpose other than ESG (e.g., diversification), such screens do not qualify as a Negative ESG Screen.

2. Positive ESG Screen: A “Positive ESG Screen” is a screen incorporated into the investment strategy utilized for the management of a portfolio that intentionally includes securities of issuers identified as having positive ESG characteristics (including positive characteristics of sub-components of ESG such as environmental, climate or social characteristics) relative to the issuer’s industry or sector peers. Positive ESG Screens include but are not limited to targeting an overall improvement of a portfolio’s ESG profile as compared to a benchmark or stated investment guideline, measured by an ESG score or an ESG metric or investing only in issuers within an industry or sector that score higher within that industry or sector than the issuer’s peers.

3. Third-Party ESG Index: An index-tracking client account qualifies as an ESG Account if it tracks a Third-Party ESG Index. An index is deemed to be a “Third-Party ESG Index” if the index methodology incorporates ESG factors or characteristics that are utilized by the third-party index provider to determine which securities are included as index constituents. A client account that utilizes a Third-Party ESG Index as a reference benchmark for performance or reporting purposes, but does not seek to track such index as an investment strategy, does not qualify as an ESG Account unless it meets at least one of the first two prongs of the definition of “ESG Account” set forth above.

The methodology used by SSGA to identify ESG AUM may differ from the methodology used under certain classification and disclosure regulatory regimes. SSGA’s ESG AUM may include AUM of client accounts for which a negative screen is applied at the request of the client for regulatory or other purposes, which may not be disclosed to SSGA, that SSGA believes results in the exclusion from the client’s portfolio of securities based on ESG criteria.”