State Street has been appointed by EISS Super to provide environmental, social and governance (ESG) Risk Analytics Solution.
As part of this mandate, State Street will provide EISS Super customised ESG performance and risk management with top-down and bottom-up capabilities.
EISS Super can assess the carbon emissions of its $6 billion (Australian dollar) in assets, as well as view its portfolio through ESG data sets to meet their investment and reporting needs across asset classes, explains State Street.
It can also analyse how the change in allocation into each company affects the overall risk profile of their portfolios.
There are more than 25 ESG principals available on State Street’s ESG analytics platform, such as water and waste management, labour practices, employee diversity and inclusion, business model resilience, business ethics.
Daniel Cheever, head of State Street Institutional Services for Australia, comments: “Demand for ESG investing has been growing significantly in recent years. Asset owners are not only looking at ESG from a transparency and disclosure perspective but also integrating ESG into their investment process to manage material ESG risks and generate alpha.”
“Increasingly, investors analyse data beyond traditional financial metrics and it is important for them to have a holistic view of ESG drivers along with risk metrics our ESG Risk Analytics Solutions delivers. We are excited to support EISS Super as they navigate the ever-changing ESG data landscape.”
EISS Super CEO Alexander Hutchison adds: “We’re committed to delivering solid long-term investment outcomes for our members. We have a responsibility to consider, understand and manage all the potential risks facing our investment holdings and one of the risk categories we look at is ESG. State Street’s ESG Risk Analytics Solution is providing us with an even deeper insight into our investment holdings.”
