State Street and S&P Global Trucost have, on April 20, announced the signing of an agreement that will marry State Street’s ESG Risk Analytics and Reporting capabilities with Trucost’s climate data and analytics.

The agreement will also allow State Street to overlay Trucost’s data intelligence on the risks and opportunities of climate change to build on its existing client-focused ESG services.

The available intelligence solutions will be offered to State Street’s clients holding assets totalling over US$40 trillion ($53.06 trillion).

In addition, the engagement offers State Street’s clients the opportunity to access Trucost’s environmental data through the reporting and analytics capabilities of State Street’s platforms.

The function will allow clients to access carbon footprint and other environmental data mapped to their portfolios, as well as the increasingly influential Taskforce on Climate-related Financial Disclosure (TCFD) reporting features, leveraging on Trucost’s Carbon Earnings at Risk, Paris Alignment and Physical Risk data intelligence.

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By partnering with State Street, Trucost will be able to more deeply integrate its climate data intelligence into clients’ decision making and reporting.

With the Trucost engagement, State Street Risk Analytics will also bring clients support for UN Sustainable Development Goals (SDG), EU Taxonomy, and sector-specific revenue metrics and will expand asset class coverage to include sovereigns.

According to recent findings derived from Trucost data released through State Street, 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 also on track for over three degrees Celsius warming, which falls 72% short of required emissions reductions to achieve the Paris Agreement.

“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,” says Brenda Lyons, executive vice president and global head of asset servicing products at State Street. 

“We are excited to partner with State Street to accelerate the awareness of climate risks and opportunities,” adds Dr. Richard Mattison, Chief Executive Officer of S&P Global Trucost and Chief Product Officer of ESG at S&P Global. “Market frameworks are being developed across many jurisdictions and S&P Global provides integrated approaches for market participants to manage and report on climate and ESG impacts.”

“For investment managers and asset owners globally, the demand for ESG reporting and data solutions continues to grow. As this need increases, our ESG Risk Analytics tools, combined with Trucost’s climate data services, are uniquely positioned to help clients meet the evolving global regulatory environment,” says Rick Lacaille, senior investment advisor and global ESG lead at State Street.