US-based custodian bank State Street has introduced its Carbon Asset Servicing Solution to help asset owners and managers to integrate carbon-related assets, such as allowances and credits, into their portfolios. State Street said the new solution would leverage its back- and middle-office capabilities to simplify management of carbon assets and minimise manual processes, enabling clients to incorporate carbon assets into both existing ESG and non-ESG portfolios. It also includes a range of fund administration and depositary services, including recordkeeping, NAV calculation, reporting and other oversight functions. The Carbon Asset Servicing Solution supports “seamless integration” of carbon assets into State Street’s core investment servicing offering, coordinating multiple parties’ data, including leading carbon registries, exchanges and cash agents, allowing clients to gain exposure to the asset class via spot and derivatives markets. “Our new carbon asset servicing solution will help clients gain access to this emerging asset class so they can directly hold carbon allowances and credits and trade them as they would other products, and ultimately look to maximise the potential of their investment portfolios,” said Phil Kim, Global Head of ESG Product at State Street.
We are excited to introduce State Street Carbon Asset Servicing Solution that allows asset managers, asset owners and other financial services institutions globally the ability to integrate carbon-related assets into their portfolios. Learn more. https://t.co/9kcItXn2rw pic.twitter.com/jgEMo7t1HL
— State Street (@StateStreet) May 8, 2023