State Street will achieve carbon neutrality for Scope 1 and Scope 2 emissions this year and has committed to further reducing its carbon emissions on an absolute basis over the next 10 years in accordance with the Science-based Targets initiative (SBTi), according to a statement from the firm.
Carbon neutrality means having a net zero carbon footprint. Scope 1 emissions are direct emissions from owned or controlled sources, while Scope 2 emissions are indirect emissions from the generation of purchased energy.
As of the end of 2019, State Street met its 30% carbon reduction goal, which was set in 2015, six years ahead of schedule. This year, the firm made efforts to achieve carbon neutrality through infrastructure retrofitting, purchasing renewable energy certificates (RECs) and carbon offsets, and “greening the grid” but utilising renewable energy sources wherever possible.
“We are committed to addressing climate change risk not only in our own business operations, but we have also joined forces with other stakeholders to help companies and investors identify and manage their own climate change risks, while supporting local and global initiatives aimed at building a more sustainable world,” Ron O’Hanley, chairman and CEO of State Street, said in the statement.
State Street’s continued action on climate change is seen across the group. For example, as an asset manager, it helps asset owners reduce climate risk in their portfolios and embrace growth opportunities in green innovation and engage with portfolio companies and boards to understand how they are managing the opportunities and risks of climate change.
Meanwhile, its asset servicing business continues to help clients better understand the carbon profile of their portfolio holdings so they can take action.