State Street to commit to cutting greenhouse gas emissions by 2050

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The ticker and the logo for New York Stock Exchange is traded on a screen at the post where it is displayed on the floor of the State Street Corporation in New York City, U.S. June 30, 2016. REUTERS Brendan McDermid is Brendan McDermid.

The asset management arm of the State Street Corp said it would join large investment firms pushing to limit net emissions to zero by 2050, part of a rush by other companies to meet climate goals.

PepsiCo Inc and Ingka Group in the Ikea store also announced new efforts on Tuesday ahead of a virtual climate summit with world leaders starting Thursday.

Scientists and activists expect U.S. President Joe Biden to cut emissions by 2030, the first update on the national climate target since 2015.

On Tuesday, Ceres, one of the largest passive fund managers with some$ 3.6 trillion in assets, was to announce its commitment at a state-sponsored virtual conference in State Street where U.S. The Climate Envoy John Kerry is scheduled to speak; State Street will be one of 14 previous signatories to the Net Zero Asset Managers initiative, which will now include$ 37 trillion in assets including new backing from its rivals BlackRock Inc and Vanguard Group Inc. Net zero refers to a balance between the produced emissions and those that are taken out of the atmosphere through technologies like carbon capture.

Signatories pledge to report quarterly targets for 2030 and set progress under common standards.

The net-zero by 2050 target is consistent with our commitment to drive long-term value on behalf of our clients said Cyrus Taraporevala, CEO of State Street Global Advisors, the asset-management arm of the company. The corporate support makes the U.S. ambition unrealistic, said Mindy Lubber, president of the Ceres climate advocacy group, and contrasts with executives' long-running skepticism, she said.

As the risks from climate change become more visible, Lubber said: Light bulbs are going off across the private sector.

Lubber and others warned that many questions remain such as exactly what financial disclosures should be required or whether executives should account for how customers use their products like fuel. Pepsi said it would expand its regenerative farming programs to 7 million acres, or roughly all the land used for the production of its products, including adding more than 500,000 acres in the United States by the end of this year.

Ingka Group, the largest owner of Ikea furniture stores, said it would spend 4 billion euros on wind and solar power production, in addition to 2.5 billion euros it spent previously on the area.

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