Today, State Street CEO Cyrus Taraporevala announced that they would be using their proxy voting power to ensure companies were identifying material ESG issues and incorporating the implications into their long-term strategy. This is a big move, and echoes the plans by BlackRock to embed sustainable investing principals into its core strategy.
We agree that ESG is no longer an optional consideration – they are vital metrics and indicators for the long-term financial sustainability of a company.
Taraporevala said as much during our Bloomberg Investor Breakfast last year. When asked about the future of ESG investing, he stated “my hope is that within the next 5 or 10 years, ESG investing will just be considered investing.”