SSGA Launches Sustainability-Focused Proxy Voting Service for Institutional Clients

State Street Global Advisors (SSGA), the world's largest investment manager, has launched a new Sustainability Stewardship Service that provides a systematic method of proxy voting and corporate engagement on sustainability issues. The new service is available to institutional separately managed account clients globally and reflects increasing demand for more sustainable investment practice, particularly on environmental, social, and governance (ESG) matters.

The Sustainability Stewardship Service is an opt-in model created in collaboration with institutional investors. It is intended to enable clients to align proxy voting and engagement efforts with certain sustainability goals. These goals are organized around four broad areas of emphasis: climate change, nature, human rights, and diversity. This model is for investors who want greater influence over the effect of their investments on corporate action towards sustainability standards.

Earlier adoption has already been witnessed within SSGA's UK and European fund ranges, who have aligned their engagement and proxy voting activities with the principles of the new framework. The service is focused on long-term value creation through promoting sustainable business practices among the portfolio companies.

To complement this framework, SSGA has also established an independent Sustainability Stewardship team. The aim of this team is to make the service's policy operational, conduct company engagements, engage at the industry level in sustainability forums, and initiate research to influence strategic decision-making. These measures are expected to advance SSGA's voice in ESG investing and governance.

In order to further solidify the direction and execution of the service's strategy, the firm has also hired a new head of Sustainability Stewardship. The position will be responsible for all elements of the initiative, as well as its execution on portfolios and in line with overall industry standards for ESG practices.

The service adds to SSGA's more general proxy voting solutions by providing clients with increased control over the way their investment values are conveyed through shareholder voting. Through this, the company reiterates its focus on client choice and sustainable investing while seeking to provide scalable solutions to a range of institutional needs.

With Sustainability Stewardship Service up and running, SSGA enhances its leadership as a steward of ESG-based asset management. The service provides institutional investors with a more effective means to promote responsible company conduct and impact directly the future of sustainable investing. 

Source/Credits:
Content reworked from KnowESG. May 8, 2025 original article published: "Driving Change: SSGA Introduces Sustainability-Focused Proxy Voting Framework"