ESG Report2022

STATE STREET CORPORATION | 2022 ESG REPORTHOMECONTENTS
3

Our Purpose

17

G OV ER NA N CE

27

Human rights in our
supply chain

4

Statement fromRon O’Hanley

18
19
19

Stakeholder Engagement
Materiality assessment
History of ESG engagement

28

Operational and Cyber
Resilience
Operational resilience
Cyber resilience

6

8

10
11
12

14
15
16

A Letter from
Rick Lacaille21

2022 at a Glance

21
22
22
22

C LI E N TS
Asset Management
Insights, engagement, andproxy voting
Investment Servicing
State Street Total ESG™
ESG research andthought leadership

22
24
24
25
25
26
26
27
27

INTRODUCTION

Board Governance and
ESG Management
Board governance
Policies and charters
ESG management
Focus on climate risk at theBoard level
Recruitment for greater Board
diversity
Shareholder engagement
Consolidated leadership forum
Risk, Ethics,
and Compliance
Risk management
Navigating the shifting worldof complianceIntegrating ethical conduct
into our culture
Our Conduct Standards
Committee
Compliance training

CLIENTS

28
29
31
31

33
34
35
36
37
37
38
38
40
41
41

Data Privacy
Global data policy andcompliance training

42
43
43
44
44
44
45
45
46
47

S O CI A L
Diversity, Equity, andInclusion
Black Equity at Work
Certification
10 Actions to Address Racism
and Inequality
Equity in Action MonthDisability and veteraninclusion
Diversity Inc. Top 50
Gender equality
Enhancing supplier diversity
Pay equity disclosure
Civil Rights Audit

GOVERNANCE

Employee Experience
Our culture
Listening to our employees
Bravo employee recognition
Employee networks
A culture that values learningand advancement
Supporting employee healthand well-being
Flexible work
Developing talentInternal mobility through ourtalent marketplace

48
49
50

Corporate CitizenshipState Street Foundation
State Street Volunteers

52

Corporate Balance SheetManagement
Sustainability Bond
Treasury ESG and funding
strategies
Tax-advantaged investments
Global Credit Finance
Leveraged loans
Commercial real estate
Municipal finance

52
53
53
53
53
54
55

SOCIAL

56

E NVIRONME NT

82

APPE ND IX

57
58

Environmental Footprint
Progress against ouroperational sustainability
goals
Measuring our environmental
impactReducing our environmental
footprint
Maintaining carbon neutrality
Reduced water consumption
Reducing our waste
Sustainable building design

83

Sustainability AccountingStandards Board (SASB)
ReportAsset management andcustody activities

58
59
59
59
59
59
60
61
62
62
77

Task Force on Climaterelated Financial Disclosures
Governance
Strategy
Risk management
Metrics and targets

ENVIRONMENT

84

92

GRI Index

113 U.N. Sustainable
Development Goals
116 EU Directive on
Non-Financial Reporting
118 EEO-1 Report
120 U.N. Global Compact
124 Assurance Letter
126 State Street Worldwide

APPENDIX

2

STATE STREET CORPORATION | 2022 ESG REPORTHOMEOUR PURPOSE IS CLEAR:

To help create better outcomes for the world’s
investors and the people they serve.
As one of the world’s largest service providers and managers
of institutional assets, our success depends on the successof our stakeholders — our clients, employees, investors,
and the communities we serve. We believe that considering
environmental, social, and governance (ESG) issues supports
our purpose.
For more information, visit statestreet.com.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

3

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

4

STATEMENT FROMRON O’HANLE Y
Welcome to our 2022 Environmental, Social, and Governance(ESG) Report, which sets out State Street’s approach to
managing and measuring ESG considerations.
2022 was an especially dynamic year in the ESG space,marked by several significant events, including Russia’s
invasion of Ukraine in February, and the war’s impact on fuelprices, transition finance planning, ESG ratings, and ESGfocused exclusionary investment screening. Asset managers
responded to new and proposed regulation, including the EU
Sustainable Finance Disclosure Regulation, the SEC’s proposed
rule to require climate-related disclosures, and an increase inreporting expectations around climate and ESG risks, including
the Corporate Sustainability Reporting Directive.

RONALD P. O’HANLEY
Chairman and CEO

INTRODUCTION

CLIENTS

During a year in which the topic of ESG spurred divided politicaland policymaker views, particularly in the U.S., we maintained
our commitment to ESG and remained consistent in our
approach, which is underpinned by value.

GOVERNANCE

SOCIALWe believe that ESG supports State Street’s purpose to help
create better outcomes for the world’s investors and the people
they serve. Through our service of global clients, we haveacquired a broad understanding of how E, S, and G issues may
affect investors and the value they derive from investments.
State Street employs a three-pronged approach to ESG:
1. As a corporation, we identify the ESG impacts wehave as a company and are attentive to the effective
management of those impacts. We aim to reduce ourenvironmental impacts and manage climate-related risks
for our business, and we carefully consider and manage
our impact on employees, communities, and society.
ESG oversight is underpinned by robust processes andcontrols, recognizing the interests of clients, employees,
and shareholders.
2. As an investment manager, we believe that incorporating
ESG factors into our investment risk framework can have

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

a positive impact on long-term value creation. This belief
influences our engagement and stewardship activity, ourdevelopment of investment choices for our clients, and thedesign of our investment processes.
3. As an investment servicer, we support our clients intheir ESG activities, enabling them to be effective intheir management of ESG opportunities and regulatory
requirements through the provision of timely reporting
research, data, and analytics.
In 2022, we continued to progress our corporate ESG agenda
through the launch of our inaugural Sustainability Bondframework and issuance of our first Sustainability Bond, theproceeds of which will be exclusively allocated to projects withpositive environmental impacts and/or positive social outcomesaligned to one or more of the U.N. Sustainable Development
Goals. State Street Global Advisors, our investment
management business, extended proxy voting choice to moreindex fund investors, which will enable those investors to direct
how shares they hold in index funds are voted. We advanced
the goals of our 10 Actions to Address Racism and Inequality,and have conducted an independent civil rights audit, theresults of which will be announced in the second quarter of2023. And, we continued to take a leadership role with globalorganizations that include: the Council for Inclusive Capitalism,a group of global leaders doing business in ways that benefit
people, their communities, and the planet; FCLTGlobal, which
focuses capital on the long term to support a sustainable andprosperous economy; and the Sustainable Markets Initiative,
launched by the then-Prince, now King Charles III of theUnited Kingdom at the World Economic Forum in 2020 toprovide recommendations to world leaders to accelerate theenergy transition to a more sustainable future, which last year
introduced a transition finance framework.
Consistent with prior reporting, State Street discloses ouractivities according to the Sustainability Accounting Standards
Board (SASB), the Task Force on Climate-related Financial
Disclosures (TCFD), and the Global Reporting Initiative (GRI)
frameworks. This report also fulfills State Street’s obligations
under the EU Non-Financial Reporting Directive and as asignatory to the United Nations (U.N.) Global Compact, anddescribes how our ESG-related activities support progress
toward U.N. Sustainable Development Goals.
Given that the political polarization around ESG does not look
to abate any time soon, where do we go from here? We believethat ESG need not be a divisive issue. Rather, we view it as anevaluation and assessment of long-term risk for investors andthe associated implications for companies and policymakers.
It is a more comprehensive view of value creation and risk
mitigation. We will serve and operate as a responsible
corporate citizen, which includes considering ESG factors as alens for long-term decision-making and carefully managing theimpacts we have on colleagues, communities, the environment,
and society. Along with our peers, we seek to manage
the regulatory, client, shareholder, and wider stakeholderinterests around ESG issues, and we are working on behalf ofour clients to bring greater coherence to competing standards
and frameworks.
As ESG considerations evolve, we will continue to partnerwith clients — and work alongside our peers and regulators,
broader stakeholder audiences, and the communities in which
we live and work — to navigate this changing landscape andthe complexities that regulations and market dynamics may
bring. State Street is well positioned to help clients address thiscomplex set of issues while creating value for its stakeholders
and shareholders.

INSERT DIGITAL SIGNATURE]
R
RO
ON
NA
A LL DD P
P .. O
O ’' HHAAN
N LL E
EY
Y
Chairman and CEO

Chairman and CEO

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

5

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

6

A LE T TER FROMRICK L ACAILLE
To our valued stakeholders:State Street has three principal ways in which it delivers
impact to its stakeholders. One way is through its business
operations, including its physical footprint and consequentenvironmental and social impacts. Another way is throughproducts and services — we offer products that can help ourclients achieve their sustainability goals. The third way that
State Street delivers impact is as a large-scale institutional
investor on behalf of a global client base with a significant
ownership stake in thousands of portfolio companies.
We believe that carefully managing our own ESG impacts
can create long-term value for our key stakeholders.
Furthermore, by providing our clients with insight andchoice in their management of environmental, social, andgovernance factors, we enhance the quality of our service.
RICK LACAILLE

Our status as a global systemically important bank, the natureof our business operations, and our role as an investor create
a complex array of impacts. In order to gauge how we canbe most effective and deliver value for our key stakeholders— clients, investors, employees, and communities — we
conduct a biannual materiality assessment. In this report,
the use of the term “materiality” and other similar terms
is intended to reflect matters that we judge to be of mostsignificance to our key stakeholders in terms of impact
or creating long-term value. We are not using such terms
as they are used under the securities or other laws of theUnited States or any other jurisdiction, or as these terms
are used in the context of financial statements and financial
reporting. Through the materiality assessment and analysis,
we identify these ESG topics, which are shared with our Boardof Directors, and they inform our ESG strategy, approach,and reporting. We conducted our last assessment in 2021,
which resulted in eight focus areas for our ESG strategy.

Executive Vice President andGlobal Head of ESG

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

We look forward to conducting our next assessment thisyear, where we will review a number of inputs from multiple
reporting frameworks and benchmarking exercises, as well as
feedback gathered from stakeholder surveys, interviews, andshareholder engagement.

Draft IFRS S2 Climate-related Disclosures, to be a crucially
important development. As regulations continue to evolve andnew regulations emerge, helping our clients adapt and stayahead of these requirements will be an important priority.

Looking back over 2022, many of our clients faced significant
new regulatory demands, particularly with the introductionof the Sustainable Finance Disclosure Regulation in Europe,requiring transparency on portfolio composition. We provided
clients with insight and comprehensive data about theirportfolios, enabling them to go beyond compliance with theregulation and improve their ability to communicate clearlywith their clients.

Our global client base gives us insight not only into how ESG
issues affect investors, but also the disparate environments
in which our clients operate and the competing objectives
they seek to manage. Often, meeting our clients’ needsmeans providing a range of options from which they canchoose according to their particular goals, constraints, andother imperatives. In our investment products, that includes
strategies with a specific ESG focus as well as others that
employ ESG criteria in their research processes.

We also responded to proposals regarding mandatory ESG
disclosure from both the Securities and Exchange Commission
in the United States and the Financial Conduct Authority in the
United Kingdom, among others, offering our perspectives on
effective climate-related financial disclosures for the benefit
of investors. Given these developments, we consider theestablishment of the International Sustainability Standards
Board (ISSB) and publication of two Exposure Drafts,
including the IFRS S1 General Requirements for Disclosureof Sustainability-related Financial Information and Exposure

Given the scale and global reach of our business, managing
our own environmental impacts is relevant to all our
stakeholders. We are committed to a high standard for global
environmental stewardship and as a result have set goals andtargets to help reduce our environmental impacts. We continue
to make progress toward our operational sustainability goaltargets for carbon reduction and water consumption reduction.
In 2022, we maintained carbon neutrality on Scope 1 andScope 2 emissions through the purchase of renewable energy
certificates and carbon offsets. Externally, we are an engaged

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL7

We believe that carefully
managing our own
ESG impacts can create
long-term value for our
key stakeholders — clients,
investors, employees, andthe communities where
we operate.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

8

2 0 2 2 AT A G L A N C E
ESG SNAPSHOT2ENVIRONMENTAL

SOCIAL

GOVERNANCE

25%

$3.8B

30%

carbon emissions reduction(Goal: 27.5% by 2030)

senior debt issued in 2022 using
diverse syndicates6

female Board
members40%$20.2M23%

water reduction(Goal: 25% by 2030)

total giving by State Street
Foundation

racially diverse Board
members

1,754 mt

145,22292%

annual carbon savings from2022 projects“Bravo” program employee
recognition moments recorded

independent Board
members

100%

$141M

$500M

carbon neutrality4

spend in supplier diversity
programbond issuance under
Sustainability Bond Framework

18

95,494

7

ISO 14001 sites5

hours volunteered by employees

new independent directors
added since 2017industry voice, and our participation with the Sustainable
Market Initiative enables us to bring clients together in a
dialogue to share actionable ideas for facilitating the transition
to a low-carbon economy, and to enhance the sustainability ofthe environment on which we depend.
1Over the past year we made important progress on internal
initiatives and achieved higher levels of engagement within
our company. For example, we have over 100 employee
network chapters worldwide. Among the largest are theProfessional Women’s Network, whose goal is to elevate andempower female employees throughout our organization, andthe Environmental Sustainability Employee Network, which
has branches across the globe to share ideas and actions to
support their local communities. Perhaps the most significant
initiative is our 10 Actions to Address Racism and Inequality. It
has had many impacts, going beyond a focus on human capitalmanagement to consider for example procurement practices
and our role in the financial system, best exemplified by our
successful fixed income issuance program underwritten byminority-owned brokers.

3

All data as of December 31, 2022, unless otherwise noted. Environmental goals are against 2019 baseline.
3 Metric tons of carbon dioxide equivalent.
4 For Scope 1 and 2, based on independently reviewed data and resultant investment in renewable energy credits and carbon offset projects.
5 State Street maintains ISO 14001 Environmental Management certification in 18 global offices. ISO is the International Organization for Standardization and ISO 14001 sets out the criteria for an environmental
management system and can be certified to. It maps out a framework that a company or organization can follow to set up an effective environmental management system.
6 Diverse syndicates include veteran, Black, Latinx, and women-owned firms. $3.8B senior debt issued includes $500M bond issuance under the Sustainability Bond framework.
2

1

Launched by the former Prince of Wales, at the World Economic Forum 2020 Annual Meeting in Davos,
the Sustainable Markets Initiative's mission is to build a coordinated global effort to enable the private
sector to accelerate the transition to a sustainable future.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

Another prominent accomplishment was the release of ourinaugural Sustainability Bond Framework and issuance of
our first Sustainability Bond. The proceeds received from theSustainability Bond issuance will be exclusively allocatedto projects with positive environmental impacts and/or
positive social outcomes, that are aligned to one or more of
the internationally recognized United Nations Sustainable
Development Goals, thus underlining our commitment
to operating responsibly as part of our corporate-wide
ESG strategy. The achievement reflected cross-functional
collaboration across the firm and was the product of ayearlong effort.
As a preview of this report, in the following pages we detailState Street’s approach to ESG aligned to four primary areas:
Clients, Environment, Social, and Governance. Within these
sections, we will cover our ESG strategy and our approach
to measuring and managing our eight ESG material issues:climate change; employee experience; diversity, equity, andinclusion; board governance and ESG management; risk,
ethics, and compliance; operational and cyber resilience; data
privacy; and ESG integration, which encompasses how State
Street defines and approaches ESG, and is a common threadthroughout the report.

INTRODUCTION

CLIENTSIn 2023, we are preparing for future regulatory reporting
requirements that will impact our corporate reporting
deliverables. We are also refining our internal governancestructure and oversight of ESG issues and activities, in close
partnership with our Risk, Legal, Finance, Compliance, andMarketing colleagues.
In closing, our enterprise ESG strategy, and our goal to deliver
long-term value for our key stakeholders, remains consistentdespite the evolving external ESG landscape. Our foundational
objectives with respect to E, S, and G likewise remain constant:• Environmental: We aim to reduce environmental impacts
from our business operations and manage climate-relatedrisks for our business.

In 2022, the definition, merits, and realm of ESG were
continually challenged and debated. We believe that thesestress factors and pressures — even the expression of politicalperspectives about ESG — provide an opportunity to affirm
the validity of ESG as an important lens and consideration
for decision-making, not only for clients, but also for our own
operations as a responsible corporation.
Sincerely,
signature]
RICK LACAILLERICK LACAILLE
Executive Vice President and Global Head of ESG

Executive Vice President and Global Head of ESG• Social: We carefully consider and manage our impact on
employees, communities, and society.
• Governance: Our Board of Directors exercises independent
oversight of all matters including those relating toenvironmental and social factors.

GOVERNANCE

SOCIAL

9

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

CLIENTS11

ASSET MANAGEMENT14INVESTMENT SERVICINGINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

10

STATE STREET CORPORATION | 2022 ESG REPORTHOMEA SSE T MANAGEMENTState Street Global Advisors is the asset management businessof State Street Corporation. Our ESG strategy and stewardshipapproach arise from our fiduciary duty to drive long-termvalue for our clients. To that end, we engage with companies
and boards on long-term risks and opportunities, including
ESG factors and issues. To pursue value for our clients, we
encourage companies to assess, manage, mitigate, or capitalize
on financially material risks and opportunities.
In 2022, State Street Global Advisors centralized ESG governanceby creating a senior level committee to oversee its ongoingcommitments to ESG and sustainable investing, related businesspractices, and public policy matters relevant to the firm, as wellas to oversee the Asset Stewardship team's proxy voting andissuer engagements. We also issued our first Task Force on
Climate-related Financial Disclosures (TCFD) report.

PORTFOLIO COVERAGE 100%
Increase assets under management (AUM) invested in assets
in material sectors (carbon-intensive sectors) that are (i)achieving net zero or (ii) aligned to net zero to 100% by 2040.
ENGAGEMENT 90%+
Ensure that at least 70% of financed emissions in material
sectors are net zero, aligned with a net-zero pathway, or the
subject of direct or collective engagement and stewardship
actions, and increase this ratio to at least 90% by 2030.
SCOPE 1+2 EMISSIONS REDUCTION 50%
Reduce financed Scope 1+2 carbon emissions intensity
50% by 2030 relative to 2019 baseline at portfolio level.

Over the past year we set interim targets for our in-scope assets
for the Net Zero Asset Managers initiative (NZAM).

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

11

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

Because our aggregate portfolio broadly reflects the market
itself, our perspective is that of a universal owner of assets.
That means that real-economy carbon emissions reductions,
across all sectors and all regions, are critical for our ability tomeet our net zero goals by 2050.
As near-permanent holders of capital where divestment is not
an option, we take a partnership approach in our relationships
with portfolio companies and boards, using our stewardshiptools to engage with portfolio companies to seek long-termvalue. Through thought leadership, engagement, and proxyvoting, we take an outcome-oriented approach to managing
ESG risks and opportunities to our clients' investments.

Insights, engagement, and proxy voting
State Street Global Advisors’ approach to proxy voting andissuer engagement is premised on the belief that companies
that adopt robust, effective governance and sustainability
practices will be better positioned to generate long-term value
and manage risk. As long-term holders of the constituents of
the world’s primary indices, the informed exercise of voting
rights, coupled with targeted and value-driven engagement, isthe most effective mechanism for creating value for our clients.
Accordingly, our stewardship program proactively identifies
companies for engagement and voting to mitigate ESG risks in
our portfolios.
Insights
Our stewardship program utilizes a risk-based approach toidentify material topics deemed likely to have the greatest
impacts on the long-term value of our portfolio companies.
We publish articles and papers on topics such as climate,stewardship, and executive compensation.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL12

See below for some of our recent publications:• Asset Stewardship Report 2021
• Making It Plain: Our Asset Stewardship Approach• The Role of Long-Term Shareholder VoiceEngagement
We hold more than 12,000 listed issuers across our global
portfolios. Therefore, the success of our engagement strategy
is built on our ability to prioritize and allocate resources tofocus on companies and issues that have the greatest potential
impact on shareholder returns. To support this process we havedeveloped proprietary in-house screening tools to help identify
companies for active engagement based on various financial
and ESG indicators.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

Factors considered in identifying target companies include:• Size of absolute and relative holdings• The top holdings of our investment• Input from our active equity and fixed income
investment teams• Companies with poor long-term financial performance• Companies identified as lagging market and industry
standards on ESG matters• Outstanding concerns from prior engagement• Priority themes based on an assessment of emerging
ESG risks
The intensity and nature of our engagement with portfolio
companies are determined by our holdings, engagement
culture in a market, and an assessment of the materiality of
ESG concerns. We endeavor to build geographic diversity within
our engagement activities to reflect our economic exposure to
global markets.

INTRODUCTION

CLIENTS

Proxy voting
We vote at approximately 22,000 meetings annually andprioritize companies for review based on factors including thesize of our holdings, past engagement, corporate performance,and voting items identified as areas of potential concern. Basedon this assessment, we will allocate appropriate time andresources to shareholder meetings and specific ballot itemswith the expressed purpose of maximizing value for our clients.
In 2022, State Street Global Advisors announced that it would
offer more investors the ability to direct how shares heldin the funds they own are voted. The proxy voting choiceprogram offers eligible investors in certain institutional
funds in the U.S. and the U.K. a range of voting policies thatwill be applied to the voting of shares held in those funds.
Voting policies offered as part of the new program will bemade available to investors through Institutional Shareholder
Services (ISS), a recognized independent proxy voting provider.
State Street Global Advisors’ clients in separately managed
accounts already have the ability to either vote their own
shares directly or delegate proxy voting of their shares toState Street Global Advisors' Asset Stewardship team.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

13

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

14

INVESTMENT SERVICING

At State Street, our Investment Servicing line of businessperforms core custody and related value-added functions,providing institutional investors with clearing, settlement,
and payment services. As one of the world’s largest asset
servicers, we have responded to the growing interest in ESG
investing with State Street Total ESG™ — an interactive, webbased platform that provides streamlined ESG research, data
management, analytics, and reporting tools for clients in all
stages along their ESG journeys. Our comprehensive ESG
solution equips clients with a flexible and comprehensive
capability to analyze ESG data from multiple data providers,
identify portfolio risks, and generate ESG reports alignedwith various regulatory schemes, in a variety of formats, andon both fund and entity levels. As an established investment
custodian and depository services provider, State Street
enables the turnkey overlay of fund holding data across a wide
range of asset classes on top of multiple third-party ESG data
sets; this data can be combined with client proprietary ESG
scores, allowing clients to create both standardized regulatory

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALand other customizable reports that help them to identify
new investment opportunities and focus their time on alphagenerating activities — forming the most comprehensive,customizable, and end-to-end solution in the ESG asset
servicing industry.
Our clients’ most significant ESG issues are data management,
climate risk and regulatory risk management, and reporting
commitments to collaborative global targets such as Net Zero
2050. By combining our strategic relationships in the ESG data
field, our research and analytics expertise, and our ability toaddress client needs across the front, middle, and back office,we have the capability to help our clients with all of thesekey concerns.
While competitors like data providers, data managementcompanies, or consultants may be able to address a single
element of these concerns, State Street has the unique ability toprovide an end-to-end, comprehensive solution — State Street

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

Total ESG — that includes portfolio construction, portfolio andrisk management, and regulatory reporting. We have built ateam of ESG subject-matter experts who engage with clientsand regulators to translate upcoming needs into technology
solutions, perform diligence on dozens of emerging ESG data
vendors, and support clients with implementations and ongoingguidance to establish ESG best practices.

S TAT E S T R E E T T O TA L E S G ™
Our solution provides industry-leading ESG data sets frommultiple vendors to meet investment and reporting needs
across asset classes, enabling:• Centralized portfolio and multi-vendor ESG data
management, so clients can spend more time optimizing
active and passive investment opportunities• Measurement of carbon footprint and carbon intensity,
scenario analysis, and other risk exposures• Compliance rule-setting customized to client oversightmodels across asset classes• Alignment of client portfolios to comply with regulatory
reporting such as the EU Sustainable Finance Disclosure
Regulation (SFDR) and the Task Force on Climate-related
Financial Disclosures (TCFD)

It is important to note that State Street Total ESG does notadvance a perspective on ESG issues; instead we provide data
and analytics to our clients to help them fulfill the approachthey have identified for themselves.
In recent years, many of our clients faced significant regulatorychange, particularly with the introduction of the SFDR in
Europe and the global adoption of TCFD standards, requiringtransparency on portfolio composition.
State Street Total ESG is a dynamic solution that has adaptedwith the dynamic nature of the ESG industry. As clients look to
add more sophistication to their ESG analysis and subsequent
disclosures, State Street Total ESG continues to anticipate
clients' needs and adapts to meet these growing demands.

• Access to industry-leading ESG research and regulatory
engagement, making it easy to stay on top of thelatest developments

For the TCFD, our solution offers clients risk management,
metrics, and target reporting capabilities, allowing clientsto effectively measure various climate-related metrics —including carbon footprint and intensity, scenario analysis,
Paris alignment, and climate Value-at-Risk – enabling
reporting at any frequency needed, including on-demand.

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL15

As the needs for the SFDR are quite large in scope, State Street
Total ESG further offers comprehensive end-to-end support
for this framework, with capabilities such as risk management,
Principal Adverse Impacts (PAI) reporting, European ESG
Template (EET) support, web disclosures, pre-contractual andperiodic reporting as well as language translation services.
These reporting capabilities are all supported by our team ofsubject-matter experts, who stand ready to help clients adapt
the reports to their needs.
The platform also benefits from our active engagement withregulators. For example, we responded to proposals underconsideration by the Securities and Exchange Commission
in the U.S. and the Financial Conduct Authority in the U.K. As
regulations and cooperative initiatives evolve, we will continue
to assist our clients in adapting to change and staying ahead ofthese requirements.
ESG and climate risks pose significant financial risks andopportunities, now and in the future. Through Total ESG, we are
well positioned to provide solutions that ease the challenge of
ESG measurement, allowing clients to focus on identifying ESG
risks and opportunities within their portfolios.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEESG RESEARCH AND THOUGHT
LEADERSHIPOne of our goals in 2022 was to continue delivering practicalthought leadership as a way to further engage with clients andprovide timely insight on important ESG issues.
State Street Associates’ partnership with
Harvard Business School
We build lasting relationships with thought leaders in academia
and look for ways to translate academic theory into businesspractice. In 2022, State Street Associates, the research armof State Street Global Markets, continued its partnership withrenowned ESG Professor George Serafeim of Harvard Business
School. Professor Serafeim’s research has been instrumental
in illuminating how ESG issues are critical drivers of long-termvalue and defining frameworks for ESG investing. The joint workby Professor Serafeim and State Street Associates researchers
Alex Cheema-Fox and Megan Czasonis helped provide practical
approaches for our clients to further integrate ESG criteria into
investment management utilizing different approaches andacross asset classes. Through its partnership with Professor
Serafeim, State Street Associates continues to build on its initial
findings, produce a wide range of ESG thought leadership, andprovide clients with actionable insights.

2022 ESG RESEARCH
Papers published and accepted in leading financial journals in
2022 included:• “Climate Change Vulnerability and Currency Returns”(published in the Financial Analysts Journal) — An approach
to allocate currency pairs according to a country’s
vulnerability to climate change• “Climate Solutions Investments” (accepted by the Journalof Portfolio Management) — We develop a methodology
to identify “pure-play” climate solutions companies andconstruct portfolios from these companies

In other new research, Professor Serafeim and State Street
Associates researcher Alex Cheema-Fox, investigated theperformance of various decarbonization strategies in a yearthat saw strong performance for carbon intensive assets,publishing the results in “Decarbonization Demonized.”
Going beyond developed markets, the team examined
how ESG investing performs across asset classes
within e​ merging markets in “ESG Investing in
Emerging Markets: An Introductory Survey.”
The team also investigated the degree to which ESG has
influenced the holdings of institutional investors and their

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

16

engagement over proxy votes, and the borrowing of short sellers
in “The Effect of ESG on the Global Equities Lending Market.”In addition to the research and publication of thought
leadership, in 2022 Professor Serafeim and State Street
Associates researchers met with more than 450 clients via
roundtables and one-on-one client meetings with CEOs, CIOs,
and senior investment management executives. They alsopresented to more than 1,350 clients and prospects globally
through conferences, seminars, fireside chats, and State Street
Associates Summer Session ESG webinars.
The team is actively engaging with clients on insights fromtheir thought leadership. Our researchers offer high-value ESG
consultative analysis, beta-testing relative carbon exposure
analysis for client asset allocation, trading, and engagement
efforts. On our Global Markets Insights platform, newproprietary ESG indicators will be added to help investment
professionals understand how appetite for decarbonization ischanging on both a daily and longer-term basis. Moreover, we
will launch publicly available carbon indicators that measure
the average carbon intensity and emissions of institutional
investors’ portfolio holdings, globally.
In 2023, we expect to publish new insights examining how
climate change, physical risks, and transition risks may impact
inflation, and how employee diversity and other factors may
impact a firm’s profitability and therefore valuation.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEGOVERNANCE
18

STAKEHOLDER ENGAGEMENT

21

BOARD GOVERNANCE AND ESG MANAGEMENT

25

RISK, ETHICS, AND COMPLIANCE

28

OPERATIONAL AND CYBER RESILIENCE

31

DATA PRIVACYINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

17

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

18

STAKEHOLDER ENGAGEMENTState Street regularly engages with stakeholders,
including employees, clients, shareholders, communities,
and regulators. These engagements enable us tounderstand what matters to them and can inform
how we deliver value to our key stakeholders.
Employees — We facilitate employee engagement by fosteringa supportive and inclusive culture and through training anddevelopment opportunities, regular employee engagement
surveys, employee networks, flexible work programs, andcomprehensive benefits.

Shareholders — We regularly engage with our shareholders
on ESG subjects such as corporate governance, human capital,and climate issues.
Communities — We strengthen communities throughpartnerships, affiliations, volunteering, and grants from State
Street Foundation.
Regulators — We connect with regulators on proposed
legislation, which enables us to understand the evolving
regulatory landscape.

Clients — We work closely with our clients to understand theirneeds and objectives, and deliver value through investment
products and servicing capabilities.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMES TAT E S T R E E T ’S
M AT E R I A L T O P I C SBOARD GOVERNANCEAND ESG MANAGEMENT

CLIMATECHANGEDATAPRIVACYEMPLOYEEEXPERIENCEESG
INTEGRATION

DIVERSITY, EQUITY,
AND INCLUSIONM AT E R I A L I T Y A S S E S S M E N T• Data privacy

A critical component of our stakeholder engagement is ourmateriality assessment. This exercise is an integral part of ourown ESG management.

• Employee experience

In this report, the use of the term “materiality” and other similarterms is intended to reflect matters that we judge to be of mostsignificance to our key stakeholders — clients, shareholders,
employees, and communities — in terms of impact or creating
long-term value. We are not using such terms as they are used
under the securities or other laws of the United States or any
other jurisdiction, or as these terms are used in the context offinancial statements and financial reporting.

• Diversity, equity, and inclusion

Every two years, we conduct a robust materiality mapping
process to help us understand the ESG issues we face andwhat is most important to our stakeholders. The results help
inform how we report on our performance. Our assessment
process includes an analysis of potentially material issues,
resulting from the review of inputs from multiple reporting
frameworks and benchmarking exercises, as well as feedback
gathered from surveys and stakeholder interviews.
Our last materiality assessment, conducted in 2021, identified
the following ESG topics:

OPERATIONAL AND
CYBER RESILIENCERISK, ETHICS,
AND COMPLIANCE• Board governance and ESG management• ESG integration• Operational and cyber resilience• Risk, ethics, and compliance

HISTORY OF ESG ENGAGEMENTState Street has maintained a long-standing belief that ESG
topics are important to consider in delivering value to clientsand other stakeholders. State Street Corporation participates ina range of industry partnerships and initiatives to engage andcollaborate on ESG topics.
The Sustainable Markets Initiative has been State Street
Corporation's primary external climate-related partnership forthe past couple of years. Our chairman and CEO, Ron O'Hanley,leads the Asset Manager and Asset Owner Task Force within
the Sustainable Markets Initiative. The task force's purpose is
to find more effective ways of deploying institutional capital toaccelerate the transition to a net-zero world. Through our workwith the Sustainable Markets Initiative in 2022, we contributed
to the introduction of a transition finance framework.

• Climate change

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL19

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMES TAT E S T R E E T C O R P O R AT I O N
E S G A F F I L I AT I O N S
State Street Corporation participates in a range of industry
partnerships and affiliations, often for collaborative
purposes and to share research and ideas. We highlight a
selection of these affiliations below. We maintain our rightto hold independent positions and views and we do notnecessarily endorse the views of the affiliations.

Boston College Center for Corporate Citizenship
Boston Women’s Workforce Council
Cambridge Institute for Sustainability Leadership (CISL)
CDP
Ceres Investor Network
Council for Inclusive Capitalism
CSR Europe
FCLTGlobal
Investment Leaders Group (part of CISL)
Investor Leadership Network
ISSB Investor Advisory Group
Sustainable Markets Initiative

S TAT E S T R E E T G L O B A L
A D V I S O R S C O L L A B O R AT I O N
WITH OTHER MARKETPA R T ICIPA N T S
It is important to note at the outset that, in order to properly
exercise the fiduciary duties that we owe to our asset
management clients, State Street Global Advisors must
always act independently when making decisions regarding
how to invest our clients’ assets and how to vote with respect
to the equity securities in which we invest those assets. While
we always make our own independent investment and voting
decisions when managing our clients’ assets, we have joined
various industry groups, discussed in more detail below, sothat we can participate in conversations, discussions, andinformation sharing with respect to issues that impact global
and local markets and that impact the long-term value of
our clients’ assets. We believe that this approach, remaining
independent but joining industry groups to participate inindustry-wide efforts to drive long-term shareholder value
creation, is consistent with the fiduciary duty that we owe to
our clients while also allowing us to remain in compliancewith the variety of laws and regulations applicable to State
Street Global Advisors across the globe.

information regarding sustainability and systemic risks
that may help us serve our clients. The following is a nonexhaustive list of the industry organizations and initiatives
that we have joined, which are designed to address andexplore topics related to material sustainability risks andthe development of more sustainable capital markets.

30% Club
CDP
Ceres Investor Network
Climate Action 100+
Climate Bonds Initiative
Council of Institutional Investors
International Financial Reporting Standards Foundation
Sustainability Alliance
Institutional Investors Group on Climate Change
Investor Leadership Network
Investor Stewardship GroupInternational Sustainability Standards Board Investor
Advisory Group
Japan Stewardship CodeNet Zero Asset Managers initiative
One Planet Asset Managers initiative
Responsible Investment Association Canada

The Task Force on Climate-related Financial Disclosures
United Nations Environment Programme Finance Initiative
World Economic Forum Transition Finance Steering Committee

INTRODUCTION

CLIENTS

Sustainable Trading

The reasons that we participate in various multi-nationalorganizations and industry initiatives are to expand ourknowledge of certain thematic issues and share our views
with other industry members and to seek the best available

GOVERNANCE

SOCIAL20

Task Force on Climate-related Financial Disclosures
Transition Pathway Initiative
United Nations Principles for Responsible Investment

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEBOARD GOVERNANCE AND
ESG MANAGEMENT

As a global systemically important bank, it is critical that we
embed strong corporate governance standards and seek tolimit potential negative impacts on our economy, society, andstakeholders. Our corporate governance structure is designed
to promote the responsible management of the ESG issues wehave identified.

BOARD GOVERNANCE

exercise their business judgment in what they believe to be in
the best interests of the company and the shareholders, taking
into account our regulatory obligations, the interests of theemployees, clients, and the community at large, and in so doing
enhancing the long-term value of the company. To effectively
govern and carry out the business of the company, our Board
meets regularly. The Board oversees the strategies, policies,
corporate responsibility initiatives, and objectives that inform
our operational management.

Our Board of Directors, in their role of overseeing the soundmanagement of the company, have the responsibility to

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

21

STATE STREET CORPORATION | 2022 ESG REPORTHOMEPOLICIES AND CHARTERS

ESG MANAGEMENTState Street’s Board of Directors takes guidance fromthe Corporate Governance Guidelines and the Standardof Conduct for Directors on the role of the Board and its
responsibilities, functions, and conduct expectations. The
Board has several committees to assist in carrying out its
responsibilities. The mandates of these committees are set out
in the charters below:

State Street has for some years had a Corporate Responsibility
Committee to provide oversight for material ESG issues, which,in 2021, evolved into an ESG Executive Oversight Committee.
Reflecting the growing awareness that consideration of ESG
issues can impact value creation, in 2022 we continued toreview our internal ESG governance processes to strengthen
integration of such issues throughout the business. During2023, we plan to develop and implement an enhanced
ESG management model to complement and augment thestrengthening of ESG at the Board level.

Examining and Audit Committee
Executive Committee

This overarching view reflects how ESG is increasingly woven
throughout our business and how we connect our operational
initiatives through the ESG lens.

Human Resources Committee
Nominating and Corporate Governance Committee

F O C U S O N C L I M AT E R I S K AT T H E
BOARD LEVEL

Risk Committee
Technology and Operations Committee
More information on our current Board committee composition
can be found here.

Climate is a major issue of focus for our stakeholders. During
the year we worked to develop our climate program to moreclearly assess potential climate impacts and manage andmitigate these risks. As part of our first-ever climate risk

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL

identification process, we developed methodologies formeasuring these potential impacts, and a climate risk policy
and key risk indicators will be implemented later this year.
The Risk Committee of the Board receives regular updates inrelation to climate risk and State Street's work in this regard.

R E C R U I T M E N T F O R G R E AT E R
BOARD DIVERSITY
We are very aware of the benefits of increased diversity atState Street. It is one of our central culture pillars helping toreflect the diversity of the markets in which we operate, andbringing greater diversity of thought to support constructive
decision-making.
The Nominating and Corporate Governance Committee andthe Board give consideration to a series of attributes whenassessing potential director nominees and new candidates,
including demographics such as gender identity, race, andethnicity, in addition to relevant experience and professional
skill sets. In 2022, in line with our strategy for improved
inclusion, our Board expanded its criteria for diversity beyond
race and gender to include disability and other characteristics
related to diversity.

ENVIRONMENTAPPENDIX

22

STATE STREET CORPORATION | 2022 ESG REPORTHOMEBOARD DIVERSITYINTRODUCTION

INDEPENDENTDIRECTORSFEMALE
DIRECTORSRACIALLY
DIVERSE DIRECTORS

%
92

%
30

%
23

Are independent directors(12 out of 13)

Self-identify as female(4 out of 13)

Self-identify as
racially diverse(3 out of 13)

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

23

STATE STREET CORPORATION | 2022 ESG REPORTHOMESHAREHOLDER ENGAGEMENT
Throughout the year we conducted a series of meetings with anumber of our major shareholders, an important opportunity
for our leadership and the Board to hear their perspectives on
issues related to ESG. Topics discussed included our approach todiversity, climate risk, employee engagement, and remuneration.

C O N S O L I D AT E D L E A D E R S H I P
FORUMDuring 2022, State Street implemented a series of organizationalchanges to further align our management team structure andprocesses to simplify, deepen, and increase accountability.

INTRODUCTION

CLIENTS

These changes are important for effective decision-making
and execution. We organized the company around three corebusinesses, with Lou Maiuri, president and chief operating
officer, responsible for the Investment Servicing business andEric Aboaf, vice chairman and chief financial officer, responsible
for our balance sheet businesses. Cyrus Taraporevala retired as
chief executive of State Street Global Advisors (our Investment
Management business) at the end of 2022, and we appointed
Yie-Hsin Hung as his successor.
The result was a streamlining of our management processes
and bodies, including the composition of our management
oversight structure. The new framework operates with fouraligned and accountable management bodies:
1. Executive Committee, our enterprise strategy-setting anddecision-making body, comprising the leaders of our threecore businesses (Investment Services, Global Advisors, andGOVERNANCE

SOCIAL24

balance sheet businesses), as well as corporate function
and key global enterprise roles.
2. Investment Services, balance sheet businesses, andInvestment Management leadership teams, comprising the
key and strategic leaders from the previous Management
Committee and beyond who will set the priorities for eachof our three core businesses.
3. Executive vice presidents (EVPs), representing theexecutive leadership of our company, responsible for thedelivery of our strategic, financial, risk management, talent,and culture objectives.
4. Operating Group, comprising all senior vice presidents(SVPs) and EVPs, which brings together this cohort toensure timely understanding, alignment, and effective
management and execution of our priorities.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

25

RISK, E THICS, AND
COMPLIANCERISK MANAGEMENT
In the normal course of our business activities, we are exposed
to a variety of risks, some that are inherent in the financial
services industry, and others that are more specific to ourbusiness activities. Our risk management framework focuseson material risks. Many of these risks, as well as certain factors
underlying each of them, could affect our businesses and ourconsolidated financial statements, and are discussed in detailunder "Risk Factors" in our Form 10-K.
The identification, assessment, monitoring, mitigation, andreporting of risks are essential to our financial performanceand successful management of our businesses. Accordingly,
the scope of our business requires that we consider theserisks as part of a comprehensive and well-integrated risk
management function. These risks, if not effectively managed,

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

can result in losses to us as well as erosion of our capital anddamage to our reputation. Our approach to risk management,
including Board and senior management oversight and asystem of policies, procedures, limits, risk measurement,
monitoring, and internal controls, allows for an assessmentof risks within a framework for evaluating opportunities forthe prudent use of capital that appropriately balances risk andreturn. Our objective is to optimize our returns while operating
at a prudent level of risk. In support of this objective, we haveinstituted a risk appetite framework that aligns our businessstrategy and financial objectives with the level of risk that weare willing to incur.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

26

We know that a balanced, inclusive, andmeasured culture helps underscore
ethical conduct.

N AV I G AT I N G T H E S H I F T I N GWORLD OF COMPLIANCE
As a global financial institution with operations around theworld, State Street is subject to laws, rules, and regulations innumerous jurisdictions and by numerous regulatory bodies.
Further, our designation as a global systemically importantbank — a reflection of State Street’s size, complexity, global
footprint, and interconnectedness across the financial system— comes with heightened supervisory expectations. To addresscompliance risk and the evolving regulatory landscape,
our Compliance Risk Management Policy and supporting
framework ("Compliance Program") sets forth enterprise widestandards for identifying, assessing, monitoring, and reportingon compliance risk.
7

Our Compliance Program applies a risk-based approach toensure both management and control function resources
are directed to those risks, regulations, and regulatorsthat represent the greatest exposure and therefore require
the greatest level of engagement. Our regulatory change
management programs are designed to identify changes tothe regulatory environment that impact our legal entities, theproducts and services they provide, and the operations they
conduct. Management and control functions work in concert
to ensure that relevance and applicability to State Street areunderstood and that internal processes, procedures, andcontrols are designed to address changes in the external
regulatory environment.

impacting our company, as well as workflow functionality to
manage the associated impact and readiness assessments
in a more operationally efficient manner. Further, in 2022 we
designated Corporate Compliance personnel with responsibility
for creating an agile approach to ESG compliance risk
management that contemplates the quickly evolving global
regulatory landscape, proactively identifying and assessing
new regulatory obligations, and implementing responsive
compliance risk monitoring and management practices.

The regulatory landscape is dynamic and continuously evolving.
To navigate compliance in this complex environment, we
continually seek opportunities to enhance our programs. For
example, in 2022, we invested in a reg-tech vendor solutionthat will be implemented in a phased, firmwide approachto optimize the current regulatory change management
processes. The solution is AI-enabled and will provide more
timely identification and classification of regulatory changes

The value we create for clients is supported by a strong cultureof ethical decision-making. We know that a balanced, inclusive,and measured culture helps underscore ethical conduct. To
help build that culture, we are consistent and strategic in how
we approach and reward compliance and risk excellence.
We have both individual rewards programs and disciplinary
response mechanisms in place.

I N T E G R AT I N G E T H I C A L C O N D U C T
I N T O O U R C U LT U R E

Defined as the risk of legal or regulatory sanctions, material financial loss, or loss to reputation resulting from failure to comply with regulatory obligations (i.e., applicable final rules, laws, statutes and regulations,formal regulatory guidance, and self-regulatory organization standards that regulate State Street’s legal entities, financial services activities and functions that support those activities).

7

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

27

We hold our suppliers to the highest
standards when it comes to human rights andclosely monitor our supply chain.

O U R C O N D U C T S TA N D A R D SCOMMITTEE
Our Conduct Standards Committee is responsible foroverseeing State Street’s program for the enforcement of
employee conduct standards. This committee, made up
of senior leaders, is tasked with ensuring that we have aconsistent approach to applying our conduct standards
framework to all matters throughout the organization.
As the body responsible for overseeing and reviewing all
employee conduct matters, it reviews these matters anddecides appropriate responses. In the spirit of transparency
and to underscore our culture of risk excellence, we compile
an annual report for all employees that highlights noteworthy
committee activities, detailing the types of matters that thecommittee has dealt with and the respective outcomes.
Importantly, it highlights conduct examples that fall shortof our expectations.

INTRODUCTION

CLIENTSCOMPLIANCE TRAINING
We carry out compliance training for our employees to ensurethat they understand the standards that have been set for
conduct as well as our culture and values. We provide the tools
necessary to ensure that our teams are fully aware of how toengage with our clients, prospects, business partners, peers,and other stakeholders.
This training curriculum covers a broad spectrum of topics
including our Standard of Conduct, Anti-Bribery and Corruption
Policy, as well as industry-specific conduct requirements
related to issues such as information security and privacy,
conflicts of interest, insider trading, and fraud awareness.

GOVERNANCE

SOCIALH U M A N R I G H T S I N O U R S U P P LY
CHAIN
As a leading global organization with significant geographic
reach, we need to ensure that our ethical standards are upheldin our procurement practices and that our suppliers are fullycompliant with all human rights laws and regulations. We holdour suppliers to the highest standards when it comes to humanrights and closely monitor our supply chain. Further detail on
how we manage human rights in our supply chain can be foundin our Human Rights Statement and in our commitment to the
U.N. Global Compact and our Modern Slavery Statement.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

OPER ATIONAL AND
CYBER RESILIENCE

With offices in 30 countries, our operations are geographicallywidespread and diverse. As our business and the financial
services industry sector increase in scale and complexity,
so does our potential exposure to business continuity andoperational threats. How we mitigate the risk of these threats
is of paramount importance and a cornerstone of our strategy.
Our vigilant approach to building resilience in our operations
reflects the high value we place on protecting our stakeholders— clients, shareholders, partners, and employees.

O P E R AT I O N A L R E S I L I E N C E

INTRODUCTION

GOVERNANCE

CLIENTSAt State Street, we define operational resilience as the abilityof the firm to prevent, adapt, respond to, and recover and learn
from operational disruptions. Given the global interconnectedfinancial markets in which we operate and the changing natureof threats that could impact operations — particularly withrespect to geopolitical events and increasing cyber threats —ensuring we are continuously assessing the resilience of ouroperations is of paramount importance.

SOCIALENVIRONMENTAPPENDIX

28

STATE STREET CORPORATION | 2022 ESG REPORTHOME

We therefore take a proactive, ongoing, holistic approach
to identifying a range of disruption threats, be they natural,technical, or adversarial in nature. This includes continuous
assessment of geopolitical, cyber, and climate-related threats
both near- and longer-term in nature. The potential impact of
this is also examined, which may result in the identificationof vulnerabilities in the resilience of our operations. Where
appropriate we seek to remediate these through a variety ofmeans. These may be short-term in nature (e.g., the transfer ofwork from one location to another, establishing split operations
capabilities) or longer-term in nature (e.g., through the careful
repositioning of resources to minimize impact where possible).
Our business continuity and disaster recovery programs are
key to ensuring that we can absorb disruptions should theyoccur. These programs set standards that require recovery
strategies to be in place and regularly tested. These standards,
by way of example, include consideration of attributes ofthe locations of our global workforce and related public
infrastructure, and climate and geopolitical factors that could
impact their work.
This continuous threat assessment and mitigating actions,coupled with regulator incident and crisis management testing

INTRODUCTION

CLIENTSand exercises help to ensure that operational resilience iscontinuously improved, responsive to changing inherent risks,and embedded as a key tenet of our daily operations.
CASE STUDY — SUPPLY CHAIN DIVERSITY
We have pursued a policy of supply chain diversity over several
years, and we know there is merit in continuing to do so. It is
one of the most fail-safe mechanisms for supporting supply
chain resilience and therefore business continuity.
We also maintain processes for ensuring that our suppliers
uphold our own high standards of equity and fair treatment,
and maintain compliance with local laws and regulations. We
regularly review our more than 5,418 preferred suppliers forcompliance with relevant human rights laws and regulations,
including clauses prohibiting human trafficking andmodern slavery.
In 2022, we expanded our supplier risk criteria to evaluate
vendors for resilience, financial health, and risk exposure, tostrengthen our supply chain overall and identify any new areasof potential risk.

GOVERNANCE

SOCIAL

29

CASE STUDY — RESILIENCE FOLLOWING COVID-19 AND
THE UKRAINE WAR
While the COVID-19 pandemic was generally less of an
operational threat in 2022, the war in Ukraine served tohighlight the impact of geopolitical events on financial markets,
whether through energy supply disruptions or the potential for
broader escalation of the regional conflict, and to reinforce theimportance of business resilience.

CYBER RESILIENCE
The nature of our business means we have custody ofextensive amounts of data and information related to ourclients and employees. We have identified the potential for datacompromise as one of the greatest threats to our business.
We recognize the threat posed by cyber breaches and theimportance of protecting the data of all our stakeholders.
Cyber resilience is foundational to our business strategy — it
is not an adjunct to what we do, but an integral part of ouroffering. We regard our secure approach to data and the digitalassets we manage, and our commitment to online safety, as ahallmark of our trusted stakeholder relationships.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

We take a strategic approach to managing cyber resilience.
We continue to follow our multiyear roadmap of proactively
managing potential threats through a combination of worldclass cyber intelligence capabilities and skill building
throughout our organization. Our cyber defense is led by
our Global Cybersecurity (GCS) team, who are tasked with
continually improving our cybersecurity, enhancing the skills of
our teams, and maximizing operational effectiveness to keep
our defenses strong.
Our cyber fusion approach is proactive, intelligence-led, andintegrated with other parts of our organization. Intelligenceled means we have detailed insights into potential threats
and leverage our global capabilities to protect and defend ourclients' interests.

leading team of cyber talent provides better insight andmanagement of potential cyber threats.
Our Cyber Defense Center (CDC) provides continuous security
detection and incident response capabilities, monitoring threats
in real-time across the entire State Street corporate network.
Its role is to minimize risk to our company, utilizing effective
incident response procedures combined with highly trained
personnel and the latest industry-leading security tooling.
The CDC operates two Fusion Centers in Kilkenny, Ireland, andPhoenix, Arizona, providing nonstop services with full failoverand redundancy capabilities. The Cyber Defense Center is acore component of our comprehensive and multidisciplinary
cyber security program.

A key development of the year was the opening of our Cyber
Fusion Centers in Ireland and the U.S. The implementation
expanded our global cyber resilience footprint and provided a
24/7 intelligence gathering and incident response process thatprovides insights and visibility to our greatest cyber threats.
These centers reflect our proactive, pragmatic, and valuedriven approach to identifying and managing cyber risks.
Combining enhanced intelligence gathering with our industry-Throughout 2022, we continued to increase our cyber resilience
resources, investing significant effort to attract, develop,
and retain top talent. We worked in close partnership with
our Global Human Resources team to strengthen our global
talent bench, building teams in multiple locations to provide
a seamless global resource, particularly in the Cyber ThreatIntelligence Group, our advanced threat teams, and our security
operations and defense teams. Knowing that the market forskilled cyber talent is highly competitive, we invested in training

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL30

and development programs to help ensure that our employees
are furnished with the right tools to remain at the forefront ofcyber resilience.
The India GCS Architecture and Engineering Center of
Excellence is an extension of the Global GCS function, delivering
as one cohesive team co-located with other State Street
critical business functions. The team comprises highly skilled
and trained cyber professionals, with years of expertise andcertification in diverse multidisciplinary skills in areas ofidentity and access management, cloud security, application
security, cyber data and analytics, network security, cyberengineering, automated testing, and security administration.
The center allows us to provide critical cyber engineering
capabilities strategically on a 24/7 basis, and provides crucial
access to talent in today's tight cybersecurity labor market.
In 2022, we also saw an increase in collaboration acrossmultiple disciplines within the cyber community, with thecommon goal of countering potential cyber threats. This gave
rise to a significant increase in public-private partnerships
to effectively address and combat risks, which we expect tocontinue as potential threats become more widespread.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

31

DATA PRIVACYINTRODUCTION

CLIENTSand data protection blurs, we work ever more closely with our
cybersecurity colleagues to protect client data.

The complexity and geographic reach of our business means
we have custody of significant quantities of data belonging
to our clients, vendors, employees, and shareholders, acrossnumerous jurisdictions. Our commitment to protecting that data
demonstrates the trust at the heart of our relationships withour clients and our people.

G L O B A L D ATA P O L I C Y A N D
COMPLIANCE TRAINING

We have developed frameworks, programs, and policies
to manage and protect data transparently and securely.
These frameworks, programs, and policies help ensure that
we comply with the respective data protection regulations
applicable to regions of operation, including the EU General
Data Protection Regulation (GDPR). Within State Street, dataprotection is managed jointly by our Global Cybersecurity (GCS)
team and our Privacy Office. As the line between data privacy

Our Privacy Office oversees the governance of personaldata, including its use, retention, and disclosure. Throughit we have enforced a Global Privacy and Personal Data
Protection Standard for all State Street personnel since
2018. All employees attend compliance training on thestandard, which also addresses the many variations anddifferences in local privacy and data protection regulations
in our operating regions.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

It is every employee’s responsibility to safeguard the data
entrusted to us, regardless of whether the data subject isan employee, client, or other individuals. In addition to ourPrivacy Standard and the work of the Privacy Office, individual
business units and corporate functions review privacy risks
and our ability to mitigate them through our non-financial
risk assessment programs. GCS works with State Street
information technology, control functions, and business units
to support the confidential nature, integrity, and availability of
information assets.
Over the past few years, we have responded to a significant
number of data subject rights requests by individuals, suchas California residents and EU data subjects, along with thosein other jurisdictions. These data requests most commonly
involve data deletion or "right to be forgotten" requests andare of crucial importance to the data subject, so in addition to
responding within the prescribed regulatory timeframe, we arecommitted to providing the best customer service in fulfillingthese requests.
In 2022, we created a privacy engineering team to support
the Privacy Office and enterprise data privacy efforts.
Members of the team have a unique combination ofknowledge and experience in the privacy compliance andinformation technology areas. They perform data protection
impact assessments (required by the EU and U.K.) providing
a significant capability for our data protection and risk
management efforts.

INTRODUCTION

CLIENTSAs the world transitions to “normal operations” in a postpandemic era, the dispersed workforce of an emerging hybrid
work model creates new challenges for data privacy. State
Street will continue to evolve our systems and processes forthe safe handling and protection of the personal data of all
our stakeholders.

32

It is every employee’s responsibility
to safeguard the data entrusted to us,
regardless of whether the data subject is an
employee, client, or other individual.

CASE STUDY: AN ADVOCATE FOR INVESTORS AND
INDIVIDUAL EMPLOYEESWithin our organization the Privacy Office has a unique roleas an advocate for the data subject, speaking on behalf of an
employee or investor seeking to correct or remove inaccuratedata, or an individual whose data has been impacted by anevent. In cases requiring rectification, the Privacy Office acts
as an advocate helping to facilitate the data subject’s ability,
within our established procedures, to obtain a resolution.
LOOKING AHEAD
We have identified and are monitoring several emerging data
privacy issues that are likely to gain prominence in 2023,
including changes to data privacy laws in China, issues ofdata privacy during data transfers, and data localization —in which local governments or authorities claim sovereign
jurisdiction over data.

GOVERNANCE

SOCIALWe believe that data localization is a significant concern. A
number of individual jurisdictions around the world have
implemented their own privacy laws, claiming sovereign rights
over certain data they consider to be local. Such claims pose
substantial challenges for State Street and other businesses
with a broad global footprint. We are developing policies tomanage this, educate our people on the implications, andreassure them that their data is safe. In China specifically,significant changes to the nation's data privacy laws havebeen made and, given the strategic development of ourbusiness in the region, we continue to take steps to comply
with these developments.
The role of data privacy in data transfers continues to attract
broad interest. We continue to advocate for our people andour clients in developing a level of understanding about thisto ensure that we have transparency around the protection ofdata in the transfer process.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

SOCIAL
34

DIVERSITY, EQUITY, AND INCLUSION42

EMPLOYEE EXPERIENCE

48

CORPORATE CITIZENSHIP52

CORPORATE BALANCE SHEET MANAGEMENTINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

33

STATE STREET CORPORATION | 2022 ESG REPORTHOMEDIVERSIT Y, EQUIT Y, AND
INCLUSIONAt State Street, diversity, equity, and inclusion (DEI) are
fundamental to our culture, strategic approach, and how we
operate our business. We want our employees to bring theirwhole selves to work and to feel comfortable and safe indoing so. Promoting a diverse and inclusive workspace brings
us a broader range of perspectives and life experiences thatencourage innovation and make teams more effective. We
believe that our focus on DEI creates value for our clients, ourshareholders, our employees, and our communities.

As a financial services leader with a global footprint, we also
have a responsibility to set an example by our actions andbehaviors and to help our clients pursue DEI best practices. Our
10 Actions to Address Racism and Inequality were launched
in June 2020, and we continue our efforts to integrate theActions into our culture and to make progress toward achieving
their goals across our operations, in our interactions withclients and stakeholders, and in society as a whole.

INTRODUCTION

GOVERNANCE

CLIENTSSOCIALENVIRONMENTAPPENDIX

34

STATE STREET CORPORATION | 2022 ESG REPORTHOME

We know that we have further to go. This year we incorporated
DEI priorities into every manager’s performance review andoffered all employees the option of adding DEI to their goals.

2022 GLOBAL FEMALE EMPLOYEES
Position% Female

5-Year2022 Goal for
Global Female
Employees

Senior Vice President andabove (SVP+)

35%

36%

Managing Director (MD)

32%

37%

Vice President (VP)

32%

38%

Assistant Vice President (AVP)

41%

44%

2022 U.S. EMPLOYEES OF COLOR
Position% Employeesof Color

5-Year2022 Goal for
U.S. Employeesof Color

SVP+

21%

22%

MD

22%

22%

VP

32%

33%

AVP

37%

35%

INTRODUCTION

CLIENTS

Leading with inclusion, we take a global approach to our
initiatives, acknowledging regional differences while pursuing
the shared goal of a culture where everyone feels they belong
and has the opportunity to succeed. This puts momentum
behind our diversity efforts and helps our employees feel proud
to be working at State Street.
We strive to challenge our assumptions about our own
behaviors, an effort that can raise important issues or
identify unconscious habits or beliefs that may be holding
us back. As our surveys provide a fundamental measure of
employee sentiment, we recently targeted focus groups of
employees from underrepresented groups to gauge theirsense of belonging.
To help employees better understand and address unconscious
bias and racism, we worked with strategic learning partners tocreate best-in-class content and increase access to workshops.
Across our learning and development opportunities, weincorporate best practices for inclusive training curricula. See
A Culture That Values Learning and Advancement.
Our more than 24 global employee networks provide
opportunities for people of diverse backgrounds to connect and

GOVERNANCE

SOCIAL

35

share their distinct cultures, identities, and experiences in a
supportive environment. See Employee Networks.

B L A C K E Q U I T Y AT W O R K
C E R T I F I C AT I O N
Building on prior years’ work with Management Leadershipfor Tomorrow, in 2022, State Street achieved Black Equity
at Work Certification. The designation is a first-of-its-kind,clear standard and roadmap for employers committed toa systematic, results-oriented approach to Black equity inthe workplace. State Street is the first global systemicallyimportant financial institution to earn this designation and oneof only 11 companies to ever receive the Bronze Black Equity at
Work Certification.
In 2022 we also announced our commitment, as one of thefirst in the industry to do so, to pursuing the Management
Leadership for Tomorrow (MLT) Hispanic Equity at Work
Certification, which sets clear, measurable standards forcompanies to achieve Hispanic equity within their organizations
and for contributing to Hispanic equity in society. We havedeveloped a rigorous plan to measurably promote Hispanic
equity in five core areas, including: Hispanic representation
at every level; an inclusive, anti-racist work environment;compensation equity; racially just business practices; andracial justice contributions and investments. Our plan has been
approved by MLT, which is the first step towardearning certification.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

10 A C T I O N S T O A D D R E S S R A C I S M
AND INEQUALIT Y
Our 10 Actions to Address Racism and Inequality are key
drivers of better outcomes within our organization and insociety as a whole. While there is more to do, we have madeimportant progress.
In 2022, we focused on reinforcing this framework across ourglobal businesses. Our leadership in Europe, the Middle East,
and Africa (EMEA) and Asia-Pacific (APAC) took an intentional
approach to ensure that the 10 Actions were understoodand adapted to regional and local environment and historicalsituations. Our APAC Diversity, Equity, and Inclusion Council
considered how the initiatives could be best applied in Asia, andsimilar well-attended conversations were held in EMEA. We
also identified a need to continue the momentum by expanding
conversations about inclusive behaviors across our business,accelerating these programs in APAC and EMEA, and gathering
more data in other regions.
Progress against the 10 Actions include:
1. Improved Black and Latinx senior employee representation

INTRODUCTION

CLIENTS

2. Sharpened our focus on Black and Latinx talentdevelopment through the launch of the Black Leaders
Cohort (BLC) and the Latinx Leaders Cohort (LLC), which
comprise our most senior Black and Latinx leaders,those at or above managing director level. In addition toproviding a sense of community for these leaders, the twogroups partner with the strategic organizations to provide
insight into themes of employee attraction and retention,and help promote State Street as an employer of choice
3. Conducted ongoing anti-racism conversations led by key
business managers and mandatory unconscious bias
training for all employees
4. Implemented DEI practices such as annual inclusive
behaviors survey and evaluation of members for
management committees
5. Increased spend with Black and Latinx suppliers, anexample includes distribution of a total of 41 percent of deal
economics from $3.75 million bond issuance to diverse
capital firms (see Treasury and ESG Funding Strategies)

7. Leveraged State Street Global Advisors' Asset Stewardshipefforts by partnering with Russell Reynolds Associatesand Ford Foundation to issue a report on best practices for
effective oversight of DEI. Read the report here
8. Improved Black and Latinx representation across ourindustry by establishing strategic partnerships withorganizations such as Black Women in Asset Management(BWAM), who is helping to identify diverse talent in the UK,
and Association of the Luxembourg Fund Industry (ALFI), a
similar organization in Luxembourg. Learn more about ourpartnerships here
9. Established combating racism as a priority for our State
Street Foundation, including Racial Equity and Social
Justice studies of our Grantee Partners in key geographic
locations. Learn more about our Massachusetts study here
10. Increased civic engagement and reflection, providing World
Anti-Racism Reflection Moments (W.A.R.M.) for employees
and families through monthly global opportunities forreflection and community service to engage on anti-racism
and social justice issues

6. Improved Black and Latinx Board representation,
increasing racial diversity to 23%

GOVERNANCE

SOCIAL36

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

37

GENDER DIVERSITY OF
S TAT E S T R E E T ’S B OA R D
AND EMPLOYEESEQUITY IN ACTION MONTH

BOARD
70%
30%

SENIOR MANAGEMENT (EVP and SVP/SMD)
65%
35%

MANAGEMENT (MD, VP, and AVP)
64%
36%

ALL OTHER (Officer and Associate)50%
50%

Throughout the world, there are systems that privilege somegroups over others. In recognizing that reality we also accept
a collective responsibility to work for solutions that help tobalance these systems so that all stakeholders — including
our workforce, our clients, and our communities — can achieve
their best outcomes.
During Equity in Action month, which launched in June 2022,
we empowered our employees to take action to create a more
equitable world. Each week we focused on a specific culture
trait with opportunities to engage with Global Diversity, Equity
and Inclusion, State Street Volunteers, and BeWell.
To honor Juneteenth, for example, we promoted a 10-day Take
Action with Your Wallet Challenge. Throughout the month our
initiatives focused on:• Finding ways of working better together toward an inclusive,
diverse, and equitable workplace, business, and community• Helping others to succeed in our communities
through global volunteer eventsMale

INTRODUCTION• Celebrating those who volunteered their time tocreate impact• Challenging ourselves to break through personal andprofessional silos and expand our networks
A collaboration between our culture team, employee
engagement team, corporate citizenship resource, and global
inclusion teams, the program demonstrated our interconnected
approach to building a more equitable organization.

DISABILITY AND VETERANINCLUSION
In keeping with U.N. Convention on the Rights of Persons with
Disabilities, State Street regards employees and individuals withdisabilities as full and equal members of society. As an inclusive
organization, we seek systemic solutions that guarantee
accessibility, and combat stereotypes and unconscious bias
through training and education that helps all our employees
understand the challenges faced by people with disabilities, andwork with community groups and other partners to create amutually supportive framework for progress.

FemaleCLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

38

In recognition of our commitment to diversity,
State Street was ranked #44 among the2022 Diversity Inc. Top 50 — the only asset
manager to make the list.

In 2022 we relaunched our Self-ID program to capture a truer
picture of disability within our workplace by asking employees
to voluntarily describe their disability status (and othercategories such as veteran status, race, ethnicity, etc.)
State Street signed the Disability IN CEO Pledge, attended theDisability IN Conference, and partnered with Work Without
Limits to conduct disability awareness training for our TalentAcquisition staff.
We continued our work on the Global Disability Taskforce, which
launched in 2020, attended Military Recruitment events, andcontinued to support Massachusetts Fallen Heroes. We also
launched the Military Recruitment and Retention Taskforce.

INTRODUCTION

CLIENTS

DIVERSITY INC. TOP 50
In recognition of our commitment to diversity, State Street
was ranked #44 among the 2022 Diversity Inc. Top 50 — theonly asset manager to make the list. The survey is the leadingassessment of diversity management in corporate America,
with more than 1,800 participating companies. The recognition
is an endorsement of the body of work we have done as anorganization to achieve greater equity. We were rated according
to the following criteria:• Human Capital Metrics: gender and racial/ethnicity
breakdown of representation in overall workforce
representation, overall management, senior management, newhires, promotions, and 10 percent highest paid populations• Leadership Accountability: CEO/senior leadershipcommitment and accountability, Board of Directors, officeof diversity and inclusion, diversity council practices, andrepresentation metrics• Talent Programs: employee resource groups, mentoring,high potential and sponsorship programs, practices, andparticipation metrics

GOVERNANCE

SOCIAL• Workplace Practices: talent acquisition, talent management,
onboarding, diversity training, workforce development
and engagement, LGBTQ, people with disabilities, militarycommunity, and employee benefits policies and practices• Supplier Diversity: spend with companies owned by people
from underrepresented groups, accountability, and practices• Philanthropy: contributions to nonprofit organizations
focused on people from underrepresented groups, employee
volunteerism, and matching programs and practices

GENDER EQUALIT Y
Our focus on promoting racial and gender equality helps
broaden perspectives, demonstrate best practices, andnurture our teams.
We support gender equality in the workplace through our
flexible work culture and benefits, providing parental andcaretaker support by offering child, elder, and personal careprograms, referrals and resources, emergency backup daycare
for our employees, and paid parental leave benefits, as well as
adoption and fertility assistance (all vary by location).

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEOver the past year, we continued to partner with Boston
Women’s Workforce Council’s 100% Talent Compact, throughwhich companies commit to closing the gender pay gap.
We also worked with the 30% Club to improve our efforts toincrease female representation at the highest levels of theorganization. For the 16th consecutive year, State Street was
the presenting sponsor of the 2022 Massachusetts Conference
for Women, the world’s largest women’s conference.
Our Professional Women’s Network established theSponsorship Program in 2019 to build and support a pipeline ofleaders for the organization and help bridge the male/female
achievement gap.
In 2022 we continued our partnership with Kahilla, an online
women’s resource group dedicated to helping women(particularly women of color) develop the mindsets andskill sets to advance and attain leadership positions. Kahillaprovides access to scalable leadership development resources
and curated content on a single digital platform. Following
a comprehensive utilization review to ensure that Kahillatraining and events were being actively used, we increased
our participation by providing memberships to 108 additional
employees. We plan to promote Kahilla broadly across the

INTRODUCTION

CLIENTS

organization in 2023 and make the curriculum available tomore women than ever before.
As a component of our commitment to gender equity, State
Street is also taking steps toward greater transparency for its
pay structures. See Pay Equity Disclosure.
We participate in several initiatives to promote inclusion andgender equity at State Street and in the asset management
industry. We worked with external partners to develop newlearning options for our Degreed platform, such as “Beyond
Equality: Engaging in Equity,” which helps employees better
understand gender inequity from an organizational and external
perspective, and to deliver a training called the Privilege
Project, which uses scenario-based discussions to explore
gender privilege in the workplace and other environments. We
also partnered with Kaplan Mobray to provide workshops on
inclusive leadership and its importance to the organization,
including examples in which leaders engage with employees
from underrepresented groups (including women). In 2022, we
also engaged with the following organizations:

supports women in computing and technical fields, as wellas the organizations that employ them and the academic
institutions training the next generation.
• Black Women in Asset Management (BWAM) champions the
positive impact of the talented Black women who work inasset management and provides tools that will enable themto thrive.
• Conferences for Women (CFW) is the largest networkof women's conferences in the U.S. The mission of theConferences for Women is to promote, communicate,
and amplify the influence of women in the workplaceand beyond.
• Women in Banking and Finance (WiBF) is a not-forprofit membership association aimed at increasing therepresentation of female leaders in the banking and financesector. The program includes enhanced learning, leading
to improved performance for employees, and knowledgetransfer from experienced leaders to less experienced.

• Anita Borg Institute for Women and Technology (Grace
Hopper Celebration) connects, inspires, guides, andGOVERNANCE

SOCIAL39

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

40

We encouraged our primary suppliers to
ENHANCING SUPPLIER DIVERSITY
Building on the successful initiatives and progress of thepast two years, in 2022 we continued our efforts to increase
diversity within our supplier base.
Our active partnerships with key organizations led to a
substantial increase in spending with diverse suppliers inboth the U.S. and the U.K. In 2022, our Tier 1 addressable
spend from vendors owned by individuals with disabilities
increased more than 50-fold year-over-year, while our spending
from Black- and Latinx-owned businesses experienced
an approximately 9% year-over-year increase. To further
enhance our Tier 2 efforts, we implemented automation in key
areas and encouraged our primary suppliers to source fromdiverse businesses through our Tier 2 program. This initiative
successfully generated more than $68 million in additional
diverse spend in 2022.
State Street performed well against industry benchmarks andwas included among the Top 50 Best-of-the-Best corporationsin America for our commitment to diversity and inclusion by

8

the National LGBT Chamber of Commerce and partners in the
National Business Inclusion Consortium.
In 2021, State Street became the first major bank to issue debt
through a diverse syndicate, and, at that time, we committed tousing at least one minority-owned firm per deal. Over the past
year our Global Treasury team surpassed that commitment,
issuing approximately 41% of $3.8 billion in total issuance via
diverse firms. We launched our Sustainability Bond Frameworkin the fourth quarter of 2022 to enable the issuance of Green,
Social, and Sustainability Bonds. A portion of total debt
issuance in 2022 included a $500 million sustainable bondissuance, which was underwritten by a syndicate that included
veteran-, Black-, women-, and Hispanic-owned firms.
8source from diverse businesses, which
generated more than $68 million in additional
diverse spend in 2022.
State Street performed well against industry
benchmarks and was included among the
Top 50 Best-of-the-Best corporations in
America for our commitment to diversity
and inclusion by the National LGBT Chamberof Commerce and partners in the National
Business Inclusion Consortium.

In 2022 we established important relationships with newindustry partners, including:• Women's Business Enterprise National Council• National LGBT Chamber of Commerce• National Veteran's Business Development Council• United States Hispanic Chamber of Commerce• Finance Services Roundtable for Supplier Diversity

Veteran-, Black-, women-, and Latinx-owned firms

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

41

As part of State Street’s commitment
We continued to work with the Greater New England Minority
Supplier Development Council, the Massachusetts Competitive
Partnership, the Boston Chamber of Commerce Pacesetter
program, and the Minority Supplier Development UK in EMEA.
These organizations leverage their members’ purchasing
power to increase opportunities for local, ethnic minorityowned businesses.
Our partnership with the Management Leaders of Tomorrow led
to State Street earning a Cycle 1 Bronze-level certification fromBlack Equity at Work. Our Hispanic Equity at Work plan has
been approved and we are pursuing similar efforts to achievecertification for that initiative.

PAY E Q U I T Y D I S C L O S U R E
A significant part of our approach to achieving gender equity
is in closing the pay gap between men and women. As partof our commitment to equal pay for work of equal value, we
regularly assess how women are paid compared to men on a
global basis, and in the U.S., how employees of color are paid
compared to their peers.

INTRODUCTION

CLIENTS

Our annual Pay Equity Review process compares pay between"like-for-like" roles, adjusting for factors such as job level,
location, and job function that make one role different fromanother. In April 2022 we issued the findings of our most recent
review process, which can be found on State Street's public
website. We also conducted an unadjusted pay gap analysis,
which compares the median pay of all men with the median
pay of all women globally, and, in the U.S., the median pay of all
employees of color with the median pay of all white employees.

to transparency, accountability, and action,and following important and productive
discussions with a range of internaland external stakeholders, in 2022 weundertook an external civil rights
audit to assess our business practices
and services from that perspective.

CIVIL RIGHTS AUDITAs part of State Street’s commitment to transparency,
accountability, and action, and following important andproductive discussions with a range of internal and external
stakeholders, in 2022 we undertook an external civil rights
audit to assess our business practices and services from thatperspective. While the report did not identify any systemic
issues, we found areas and opportunities for improvement andintend to publish the results in the first half of 2023.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

42

EMPLOYEE E XPERIENCE

When employees are engaged, supported, and feel valued,
everyone benefits. Employees are able to reach their fullpotential, employers retain their best talent, and client
service is at its best. The desire to create this optimal work
environment has been consistent for years at State Street. We
strive to maintain a supportive culture — one that emphasizes
connection and caring for our colleagues, our clients, and ourcommunities. We regard our culture as essential to achieving
our business objectives and connecting employees to ourcompany's purpose.

In 2022, we continued our efforts to maintain an environment
where employees can excel personally and professionallyand where a healthy work-life balance is encouraged. We
promote employee health and well-being through our benefits,wellness initiatives, and flexible work offerings. We continued
to encourage employee interaction and foster a sense ofconnection through regular Q&A calls with management,
employee forums, and surveys to help our leaders listen andunderstand our employees’ concerns and experiences.

In recent years, the challenges of the global COVID-19
pandemic and the momentum toward social justice have led
employees to seek a greater connection to purpose and thecore values of their employer. We facilitate this connection
through our supportive and inclusive culture, effective internal
communications, intentional learning and development, andopportunities for engagement in the community.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEO U R C U LT U R E

S TAT E S T R E E T C U LT U R E T R A I T S
We employ a behavior-based approach to culture that focuses on amplifying the desired behaviors associated with our five culture traits.

We link our corporate strategy and values to desired everyday
behaviors that reinforce our culture traits (see sidebar).
These traits are aligned to our values and set the stage forhow employees interact with each other and our clients.
When reinforced in the workplace, these behaviors serve tostrengthen an atmosphere in which employees can thrive,
which is essential to achieving our business goals.

OUR CULTURE TRAITSLISTENING TO OUR EMPLOYEES
Fostering a positive employee experience is only possible whenemployees feel included, valued, and heard. One way we ensure
this happens is by our commitment to employee listening andaction through several mechanisms.
Each year, we conduct a comprehensive survey with our entire
employee population to measure and understand what drives
engagement. We also look for factors that, when responded
to, will influence positive business outcomes. We also use
the findings as part of our action planning to better respondto employee needs and inform organizational improvements
for the coming year. State Street managers have access to an
online tool to analyze their team results, which are aggregatedanonymously to preserve confidentiality of employee feedback,INTRODUCTION

CLIENTS

GOVERNANCE

OUR BEHAVIORSCHOOSE TO OWN IT

Take the initiative to deliver
business objectives

BREAK THROUGH SILOS

Collaborate across teams toreach our shared goals

DELIVER RESULTS WITH
INTEGRITY AND SPEED

Drive outcomes for clients,
employees, and shareholders
while managing risk

DO BETTER EVERY DAY

Seek better ways of working
and adopt new solutions

CARE FOR OUR COLLEAGUES,
CLIENTS, AND COMMUNITY

Help others to succeed

SOCIALENVIRONMENTAPPENDIX

43

STATE STREET CORPORATION | 2022 ESG REPORTHOMEand they can examine or respond to suggestions to enhanceteam engagement and track progress over time.
Another way we listen to all of our employees is throughintermittent pulse surveys. These shorter surveys solicit
feedback on the progress of our engagement efforts as well
as seek employee opinion on other ongoing company efforts.
The goal is to identify how important elements of our culture
show up in our daily interactions and work with our colleagues,
peers, and leaders, to identify where improvement is occurring,
and where more work remains to be done.
Other mechanisms for creating a dialogue with employees are
regular blogs from senior executives on our intranet and online
discussions with strategic initiative leads on our internal social
networking site.
In addition, employees have told us they want more structured
opportunities to interact with colleagues and management.
In response, we host bi-monthly employee calls and monthly
manager calls in most regions, along with Town Halls andLeader Forums worldwide for our business groups andregional locations. We also work with our employee network
leaders to offer a host of in-person and hybrid networking,learning, and engagement opportunities to foster a sense ofcommunity and belonging.

INTRODUCTION

CLIENTSB R AV O E M P L OY E E R EC O G N I T I O NThroughout the year, employees are encouraged to recognize
and celebrate colleagues who live our culture traits via our
global peer reward and recognition program called Bravo. This
program is increasingly important, as the hybrid working modeland global team structure do not always allow for face-to-facerecognition opportunities. Bravo encourages employees torecognize their colleagues for good work, good deeds, or goodideas — anything that reflects our culture traits. Employees
have greatly appreciated the opportunity to highlight the workand success of their teammates and amplify those positive
stories across the entire State Street global network. In 2022,
our employees experienced more than 145,000 recognition
moments, which include not just awards received but also thenumber of times employees thanked or congratulated
one another.

EMPLOYEE NET WORKS
Our 24 employee networks provide forums and opportunities
for individuals to come together to share their uniqueperspectives and experiences, learn from one another, andbuild community. These affinity relationships help employees
feel they belong and are empowered to bring their authentic
selves to work. Over 110 chapters worldwide offer in-housenetworking, mentorship, career development, and training

GOVERNANCE

SOCIAL

44

opportunities as well as cultural experiences that reflect theunique interests and goals of each network. Sponsored bysenior executives, the networks are managed by volunteer
employees and organized around the 4C model: culture, career,commerce, and community.

A C U LT U R E T H AT VA L U E S
L E A R N I N G A N D A D VA N C E M E N T
Effective learning opportunities provide career development forour talent, helping us to be higher performing. We empower our
employees to define and select learning and career pathways
for themselves, in addition to required training. Ultimately, we
believe that effective learning opportunities may reduce ourbusiness risk and fuel our growth.
We provide a wide range of development and training initiatives
that help employees increase their skills and progress toward
their professional goals. Our training library includes overa million different learning opportunities, including online
courses, videos, posts, and articles.
One of our focus areas in 2022 was to increase awareness anduse of our learning platforms and resources. The predictive
capabilities of the platforms become more effective as
user volume increases. Our Degreed Enterprise Learning
Platform is a great example. Degreed helps employees

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOMEnavigate our educational library through targeted, AI-driven
recommendations based on an employee’s specific interestsand skill profile, helping to ensure that individuals continue
to develop in areas most relevant to their role. In addition,individuals and managers can recommend to their colleagues
specific training that they have completed to reinforce peer
learning. Almost half of the global workforce accessed theDegreed platform 10 or more times in 2022.
Our Web Content Accessibility Guidelines provide educational
resources and best practices for building and adapting more
inclusive training curricula, particularly for those with vision orhearing impairments. Over the past year we began to embed
this approach to ensure that newly created resources will beaccessible to all.
We continued to seek opportunities to drive engagementwith our learning platforms, including for example a pilot
partnership with a virtual coaching company. It provides mobile
device technology that is scalable and convenient, particularly
for middle management. In 2023 we plan to continue rolling thisout, in conjunction with other innovative solutions, to further
expand access to learning resources.
In addition to the vast range of vendor-sourced learning
opportunities available on Degreed, we have continued to curate
and develop new programs to address the evolving needs of theorganization. These include leadership development programs

INTRODUCTION

CLIENTS(for example, the “Journey to Leadership Excellence” program,developed in partnership with Harvard Business Publishing,which recently won the bronze award from the Brandon
Hall Group for Best Advance in Education Delivered ThroughTechnology), Data Analytics, Digital and Crypto Asset pathways,
New Ways of Working in a Hybrid Environment, Executive
Presence and Storytelling for Business Impact, and thedevelopment of technical business-aligned modules. There has
been a particular focus on enhancing our learning experience
for new joiners, for example our flagship Global Delivery
Academy that provides new hires with a comprehensive
multi-week onboarding program that combines core financial
industry knowledge, State Street processes and technology, andprofessional skills, through live instructor-led sessions, online
learning, and videos.

S U P P O R T I N G E M P L O Y E E H E A LT H
AND WELL-BEING
We take a comprehensive approach to employee health andwell-being. We consider physical, emotional, and financial
wellness under our global well-being program, BeWell. To
support this, we offer a wide array of benefits to meet thediverse needs of our global workforce and their families.

reimbursements, childcare support, financial planning andeducation, tuition assistance, and online wellness programs.
We also sponsor “healthy challenges” to create enthusiasm andsupport employees with achieving their wellness goals.
• State Street provides a Mental Health Hub where employees
can find all stress management tools and other mental
health resources. The hub includes access to our free andconfidential global Employee Assistance Program, designed
to support employees’ mental health and well-being. This
service is available 24/7, throughout the world.
• State Street also strives to support employees in dealing
with events beyond the workplace. For instance, specializedcrisis support and increased SOCIAL FUND financial aid
has been provided to help employees impacted by the
war in Ukraine.

FLEXIBLE WORK
State Street is committed to attracting and retaining aperformance-driven workforce in order to achieve its businessgoals and to provide a high-level of service to its clients. State
Street recognizes that maintaining flexibility in how, when, andwhere work is done can be key in meeting these objectives.

The benefits vary from country to country but may include
wellness coaching, exercise and meditation classes, fitness

GOVERNANCE

SOCIAL45

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME“This is an innovative way for all
employees to access new roles, skills,
and opportunities and for managers
to recruit internal talent. By broadening

As we collectively support the company in transforming theway we work, and with the shift to a hybrid working model,
State Street’s commitment to flexibility continues through theevolution of flex work. Alternative Work Arrangements is a
new approach to flexible work and an opportunity to enhance
the policy, governance, and resources to address the flexibility
needs of our workforce today and as part of our workplace ofthe future.

every employee’s access to roles andby showing managers the full breath oftalent at State Street, our goal is toprovide better pathways to success forall employees. We also want to deploy
a marketplace as a way to drive greater
diversity at all levels of the company.”– Ron O’Hanley

4,600+
employees hired into roles throughinternal mobility in 2022

INTRODUCTION

CLIENTS

Employees may work with their managers to propose analternative work arrangement that helps achieve businessobjectives while allowing flexibility for the individual employee,
in alignment with our hybrid work model.

D E V E L O P I N G TA L E N T
In alignment with our philanthropic focus on education andworkforce development, we offer a variety of early-in-career
and talent pipeline programs including the following:• In partnership with the Boston Private Industry Council (PIC),
we offer 6-week summer internships for Boston highschool students• We also offer a 10-week summer intern program forcollege students, hosting students from universities acrossthe US for experiential learning and a full curriculum of

GOVERNANCE

SOCIAL

46

professional topics with exposure to senior leaders whoshare details about State Street’s businesses• In addition, State Street welcomes college students toparticipate in two 6-month co-op programs each year
allowing for a deeper understanding of the company and key
business areas• Globally, we offer intern programs in a number of countries
around the world, aligned with the institutions of higher
education in those countries• In India, we also offer a 1-year apprenticeship program withmore than 250 participants each year
The programs indicated above represent a great opportunity
for students and other early-in-career individuals toexperience State Street’s environment, culture, andbrand, while company managers and leaders gain
exposure to young talent. The programs are part of ourtalent pipeline whom we look to convert into full-time
positions based on performance and role availability.
College intern programs in particular represent feeder pools
into our Professional Development Program, which places
high-performing recent college graduates into a two-yearrotational program of tailored immersion across a rangeof business areas. In 2022, we introduced business tracks

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEEMPLOYEE NETWORK MENTORING
Our employee networks also provide mentorshipprograms and opportunities for professional development:• Professional Women’s Network (PWN) Sponsorship
Program — The PWN Sponsorship is helping build andsupport a pipeline of leaders by pairing a mid-career
participant with one of our senior leaders.
• Latin American Professionals Group (LAPG)
Mentoring Program — This program combines
targeted professional development with networking
in a development plan to help early- to mid-career
participants build on their current skills.
• Disability 4 Disability Mentoring Program — A peerto-peer mentoring program by the Global Disability
Awareness Alliance, Disability 4 Disability matches
members throughout the world for mentoring
relationships that strive towards a focused outcome.

INTRODUCTION

CLIENTS

into this program which allows participants to rotate within
business areas before receiving a full-time position within thebusiness area. We also offer several mentorship programs
designed to develop the next generation of talent. Our Diversity
Mentorship Program helps candidates move from operationalroles into sales and client management. The annual programis sponsored by our head of sales and other senior leaders
who provide mentoring and education in those areas. Our
Leadership Development Program provides rotational
assignments for current high performing and high potential
Assistant Vice Presidents, allowing them to leave their current
positions and experience a variety of business areas, before
landing a new role in a different business area. Participantsreceive targeted development, exposure to executive leaders,and coaching. There were nine participants in the AVP
Leadership Development Program in 2022.
In addition to the above, we offer multiple regional sessionsof a 6-month VP Accelerator program for high performingand high potential VPs. Participants are nominated by their
managers or other leaders and selected based on a variety
of factors to ensure we have diverse representation from key
business areas. The program offers mentoring, project work,

GOVERNANCE

SOCIAL47

leadership panels, coaching, development related to levelappropriate topics, and much more. 90 VPs participated in the
program in 2022.

INTERNAL MOBILITY THROUGH
O U R TA L E N T M A R K E T P L A C E
In 2020, State Street introduced the Talent Marketplace, aninnovative approach designed to increase our focus on internal
mobility by enabling employees’ access to new roles and on
the job learning opportunities while also encouraging internal
mobility throughout our organization globally. This approach
focuses on providing programs, tools and resources designed
to develop existing skills and provide upskilling throughtraining to increase an employee’s readiness to advancetheir career.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMECORPOR ATE CITIZENSHIPAt State Street, we strive to make a positive and lasting
impact in communities where we have a business presence.
Our Corporate Citizenship programs provide comprehensive
support to our communities through grants, volunteerism, andvisibility. We also empower and resource our employees to bepart of this purpose-driven work, helping them feel a sense of
pride in State Street.

INTRODUCTION

GOVERNANCE

CLIENTSSOCIALENVIRONMENTAPPENDIX

48

STATE STREET CORPORATION | 2022 ESG REPORTHOMES TAT E S T R E E T FO U N DAT I O N G I V I N GS TAT E S T R E E T F O U N D AT I O N
Since the 1970s, State Street Foundation has made grants tohundreds of nonprofits and non-governmental organizations
throughout the world, seeking to create deep-rooted economic
benefits through education and workforce development
initiatives. The Foundation supports high-performing
nonprofits reducing gaps in educational achievement andemployability due to race, ethnicity, and socioeconomic status.
By providing unrestricted grants to support the core functionsof organizations whose missions, activities, and strategies alignclosely with our own, State Street Foundation enables theseorganizations to determine their spending priorities.
We updated our grant making guidelines for our Massachusetts
grants portfolio in 2021 to better reflect our commitment toracial equity and social justice, and extended these guidelines tothe rest of the United States and Canada in 2022. Expanding thiswork across our global locations will inform our future giving
in Europe, the Middle East, Africa, and the Asia-Pacific regions.
Over 60 percent of the charities State Street Foundation
supports in our eastern Massachusetts headquarters region
are led by Black, Indigenous, or people of color (BIPOC).

EMPLOYEE MATCHING GIFTS
including 2:1 matches forselect organizations supporting
Ukrainian refugees

GRANTS TO NONPROFITORGANIZATIONS
addressing equity
gaps in education andworkforce participation

OTHER
including volunteer
support anddisaster relief$4.8M$13.2M$2.2M

In 2022, State Street Foundation expanded its commitment
to Early College in Massachusetts, a college readiness initiativethat enables underserved high school students to earn college
credits free of charge while completing their high school$20.2MTOTAL GLOBAL GIVING BY
STATE STREET FOUNDATIONINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

49

STATE STREET CORPORATION | 2022 ESG REPORTHOME

4Annual paid volunteer days for every employee

1:1
Matched employee donations andfundraising efforts$500
Granted for every 16 hours volunteered with asingle community organization$10,000
All employees have access to at least $10,000

graduation requirements. Overseen by the Massachusetts
Department of Elementary and Secondary Education, thisstate-accredited joint venture pairs high schools with higher
education institutions to close student achievement gaps incollege completion. State Street Foundation made significant
investments in four high schools in Boston and Quincy, andfunded a technical assistance organization to help each uniqueschool environment navigate its program’s approval anddesignation process, which enables further access to publicfunding. In 2022, we seed-funded an additional Boston Publichigh school to bring our support of Early College to a total of
five high schools within the cities of Boston and Quincy.
State Street Foundation's wide reach and impact around theglobe is due to the work of our Community Support Program(CSP), employee-led volunteer committees that support local
charitable organizations in the communities where State Street
has a business presence. These committees provide employees
the opportunity to give back by unleashing their professional
talents and expertise. CSP committees are responsible forproviding grant funding to local charitable organizations inaccordance with Foundation guidelines and facilitating volunteer
projects for their colleagues.

annually in matching gifts

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

50

Additionally, we encourage State Street employees to support
the charities that they care about, and we amplify their
donations through a robust matching gift program. We match
1:1 employees' personal donations of $25 or more to charities
and accredited schools, and in 2022 offered a 2:1 match forselect organizations supporting Ukraine relief efforts. In 2022,
64 percent of employees whose donations were 2:1 matched for
Ukraine relief efforts were first-time participants inthe program.
To complement our 1:1 match of personal donations, we offer
a 1:1 match of employees' charitable fundraising efforts andmonetize their volunteer time. For every 16 hours an employee
volunteers with a single organization, the organization is eligible
to receive a grant of $500. Through our matching gift program,
employees can access up to $10,000 annually to amplify theircommunity impact.

S TAT E S T R E E T V O L U N T E E R S
Our employee volunteer program, State Street Volunteers,
aims to help our communities thrive via service that helps
close social and racial equity gaps, while also up-skilling our
employees by engaging them in this critical work. State Street
Volunteers utilizes an open-platform approach, encouraging

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

employees to volunteer with organizations they care about. We
actively support our volunteer ambassadors and Community
Support Programs globally to provide meaningful volunteer
opportunities locally. Additionally, we provide highly strategic
and impactful skills-based volunteer opportunities to our State
Street Foundation grant partners, engaging teams of volunteers
to help build organizational resilience. We strive to incorporate
volunteering as a core part of our corporate culture, ensuring
it is equitable, accessible, and maximizes community andemployee impact through the intersection of our communities’
needs, State Street resources, and employee interests.
SKILLS-BASED VOLUNTEERINGThe State Street Volunteers program continues to focus on
and scale our skills-based volunteer efforts, in which ourcommunity partners self-identify their needs and are matchedwith subject-matter experts from across State Street. Theseskills-based projects are typically virtual, ensuring the ability
for all our community partners to access the very best ofState Street regardless of where the employee or charity
is located. As we continue to highlight the impact of skillsbased volunteering and listen to the needs of our community
partners, employees have increasingly engaged with our global
projects and begun to develop their own skills-based service
opportunities. Of the total volunteer hours recorded by our
employees in 2022, 55 percent were skills-based in nature.

INTRODUCTION

CLIENTS

We continue to scale our skills-based volunteer programs
through two annual signature programs. In 2022, State Street
Volunteers partnered with State Street's Executive Leadership
Development Program to provide year-long volunteer
engagements to top-performing senior employees. Program
participants led 10 skills-based volunteer projects with State
Street Foundation grantees, each lasting 8-11 weeks, providing
valuable service and resources to the grantee partners.
Program participants expanded their professional experienceby working on challenges with highly skilled and capable
volunteers from around the world.
The second signature program is our annual Day of Service,
which takes place during Global Volunteer Week, a week
focused on inspiring and motivating State Street employees
for volunteer service. The Day of Service is comprised of 10
hack-a-thon style projects that partner State Street Foundation
grantees with a wide array of employees globally to solve
problems, brainstorm new ideas, and engage in diverse thought
and conversation.

SUPPORT TO UKRAINIAN REFUGEES
We are humbled by the support and solidarity that ourcolleagues globally, and particularly in Poland, have shown tothose affected by the war in Ukraine. Our employee volunteers,
primarily in Poland but across Europe, have gone above andbeyond to support those impacted by this humanitarian crisis,

GOVERNANCE

SOCIAL51

IN 202295,000+employee volunteer hours

55%
of volunteer hours were skills-based in nature

spending thousands of hours at train stations to welcome
the people of Ukraine, provide them with food and essential
items, offer them translation services, and help assimilatethem into their new homes. Additionally, our Polish colleagues
offered employment support through assistance with writing
job applications, paying language tuition, and providing accessto necessary IT equipment. The support that our employee
volunteers provided to Ukrainian refugees embodies the goalsof our Corporate Citizenship program and our culture trait:"Care for our Colleagues, Clients, and Community."

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

52

CORPOR ATE BAL ANCE SHEE T
MANAGEMENTS U S TA I N A B I L I T Y B O N D
In November 2022, our Corporate Citizenship and Diversity,
Equity, and Inclusion (DEI) teams worked with our treasury,
finance, and investor relations groups to launch our first
Sustainability bond, another demonstration of our tangible
support for ESG investing. We announced the issuance of$1 billion of senior unsecured bonds, including an inaugural$500 million bond issued under our Sustainability BondINTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

Framework, which enables the financing of green, social, andsustainability projects. The syndicate included a veteranowned firm as a bookrunner, and included Black-, women-, andHispanic-owned firms as co-managers. The framework is anelement of State Street’s broader ESG strategy.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

TREASURY ESG AND FUNDING
S T R AT E G I E S
In 2022, we furthered our commitment to Diversity, Equity,and Inclusion by continuing partnerships with minority-,
women-, and veteran-owned institutions. During the year, weachieved our commitment of using at least one diverse firm
per deal as a bookrunner as well as having multiple diverse
co-managers. We have distributed approximately 41% ofdeal economics to diverse firms across $3.8 billion in 2022
issuances. In February 2022, State Street announced it would
partner with Black-owned businesses to underwrite $1.5 billionof senior unsecured debt. In line with our ongoing DEI policy,
this reinforces our commitment to strengthening Black-owned
businesses and partnering with Black- and Latinx-owned
investment firms.
Our Treasury and Global Credit Finance (GCF) divisions haveestablished ESG-related guidelines for their balance sheet
investing and lending practices. For example, there has beena concerted effort to increase exposure to ESG bonds. This
type of impact-based investment strategy underscores ourcommitment to responsible investing.

TA X- A D VA N TA G E D I N V E S T M E N T S
Our commitment to ESG investing extends to initiatives to help
finance public investments that support our communities. In
2022, our tax-advantaged investments group maintained twolines of tax-advantaged sustainable investments, in affordable
housing and renewable energy. The combined impact of theseinvestments totals $183 million.
In an era of housing instability, institutional investment in
low-income and affordable housing has been a bright spot,
and our focus in this area has helped to create a market forinvesting supported by the low-income tax credit. The impactof the 2022 Inflation Reduction Act is just starting to be felt forenergy infrastructure, but should be positive for adding energy
capacity ranging from wind and solar to hydrogen and carbon
capture assets.

GLOBAL CREDIT FINANCE
Global Credit Finance (GCF)'s mandate is to attract, serve, andretain State Street's clients through the extension of credit,
while optimizing the profitability of a diversified portfolio ofloans constructed within the confines of our balance sheet.
GCF accomplishes this by offering a broad range of productsthat meet our clients' credit needs, for example by providing

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL53

commercial real estate lending, or municipal financing.
As a result, we cultivate and maintain strong long-term
relationships with many of State Street's largest clients.

LEVERAGED LOANS
In addition, State Street invests in a portfolio of leveraged loans,which are privately arranged debt instruments that provide
capital to a company, usually with a rating below investment
grade. Global Credit Finance has built a portfolio of large, liquid,
syndicated loans to corporate borrowers, denominated in euros
and U.S. dollars. Environmental risks, social track record,
and governance structures have historically been factors
considered in the Leveraged Loans team’s credit in order toassess the potential impact they would have to the credit profile
of our borrowers.
The Leveraged Loans portfolio is naturally tilted towards
more environmentally friendly sectors, given our high credit
quality and hold-to-maturity investment strategy. The portfolio
is underweight cyclical sectors, which are some of the mostimpactful on the environment, such as Chemicals (4.21 percent),Industrials (2.52 percent), and Energy (0.35 percent) as ofDecember 31, 2022. Negative social considerations arehighlighted with mitigants. Governance risk remains important
given the typical characteristics of our borrowers, such as
high leverage, mid-cap, private ownership, and sponsor held.
As a result, the Leveraged Loans analysis includes a trust and

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

54

33% of our $2.8 billion real estate portfolio
investments represent buildings with LEEDand EnergyStar certifications.

competency assessment focusing on the managing bodies ofeach borrower.
In 2022, the Leveraged Loans team incorporated ESG
third-party analytical ratings and analyst ESG assessment
interpretations into its credit appetite paper for both its
existing and prospective loans. Each borrower is carefully
analyzed of its ESG risks. The aim is to highlight material
ESG risk considerations in the credit opinion and rationale forinvestment. The team also participated in a pilot regulatory
Climate Risk Stress Test exercise and developed an internal
method to estimate GHG emissions for companies that do not
publicly disclose such data.

testing capabilities and improve upon the credit risk
management framework.

Energy Star ratings. Of the 13 LEED-certified buildings, four are
LEED Platinum, the highest certification level, while nine are
LEED Gold.

C O M M E R C I A L R E A L E S TAT E

LEED certifications are more concentrated in the office sector(11 of the portfolio’s LEED loans representing $857 million ofloan value involve offices), while two multi-family loans with
$101.5 million of loan value involve LEED certification.

In 2022, the commercial real estate team developed a climate
risk scorecard to assess both physical and transition risks
related to climate change at each property in our portfolio.
This scorecard measures climate risk for each loan
quantitatively, based on the probabilities of various weather
events, and qualitatively, based on the severity of the impact ofeach event according to a team member’s judgment. The team
now incorporates this scorecard into its investment decisionmaking process.

For 2023, the team is expanding its evaluation of ESG risks for
all new and existing borrowers. For example, from a climatechange perspective, specifically physical and transition risks,
the team will begin using an internally developed "climate
risk scorecard." The aim is to use the scorecard findings tobuild out and calibrate State Street’s climate risk stress

To better understand the environmental risk to the portfolio, thegroup cataloged property-level environmental certifications.
Through this effort, the team identified that 18 of the 54 loans(33%) in our $2.8 billion real estate portfolio involve buildings,
representing $1.2 billion in loan values, with some sort ofenvironmental certification — five have both Leadership in
Energy and Environmental Design (LEED) and ENERGY STAR
ratings, another eight have LEED ratings, and five others have

INTRODUCTION

GOVERNANCE

CLIENTSSOCIALIn addition to the focus on environmentally conscious lending,State Street also strives to promote the availability of affordable
housing in the U.S. Currently, nine of the portfolio’s 23 loans
backed by multi-family properties have a percentage ofunits with an affordable designation. As of January 2023,
roughly 5% of all apartment units forming the collateral of aState Street loan are affordable housing, and we continue tolook for lending opportunities to support this important mission.
ESG considerations have and will continue to serve asimportant drivers in the commercial real estate team’s
investment decision-making process. Executed in mid-2022,
the team closed a large direct investment, a $132 million loan
to support a client in their purchase of residential property in
New York City with 365 apartments, 73 of which are affordable
housing units.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

55

MUNICIPA L FIN A NCE P OR T FOL IO
BREAKDOWN
Our municipal finance group provides credit enhancementand direct lending facilities to help U.S. municipal and notfor-profit clients finance vital infrastructure projects thatserve social and environmental needs.
$3.4B STATE AND LOCAL GOVERNMENTMUNICIPA L FIN A NCE$425M PUBLIC POWER

Our municipal finance group provides credit enhancement anddirect lending facilities to help U.S. municipal and not-for-profit
clients finance vital infrastructure projects that serve socialand environmental needs. Our clients include state and local
governments; essential service providers like water, sewer,
and public power utilities; airports; transportation agencies;
affordable housing authorities; public higher education systems;
and not-for-profit hospital systems.

$1.65B WATER AND SEWER$210M HIGHER EDUCATION$238M AIRPORTS

management team oversees and reviews annually. ESG
considerations have and will continue to be important factors
within the investment decision-making framework. Portfolio
exposures are subject to analysis and monitoring for issues
including susceptibility to climate events and natural disasters,
water and wastewater management, energy management(including transition to renewable energy for power generation),cost of legal and regulatory compliance, demographic andsocioeconomic trends, affordability of service, and strength ofgovernance framework.

$249M HOUSING AUTHORITIES$763M TRANSPORTATION SERVICES

The municipal finance group evaluates portfolio investments
according to our risk guidelines, which our enterprise risk

$125M HEALTH CARE
$8M OTHERINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEENVIRONMENT57

ENVIRONMENTAL FOOTPRINT60TASK FORCE ON CLIMATE-RELATED FINANCIALDISCLOSURES REPORTINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

56

STATE STREET CORPORATION | 2022 ESG REPORTHOMEENVIRONMENTAL
FOOTPRINT

Climate change continues to be one of the single largest
issues impacting our global society. It is at the center ofpolitical debate, social discourse, and economic policy.
Managing the risks associated with climate change andhelping to find a solution are a priority for organizations
throughout the world. At State Street we view climatechange as a material risk we need to manage in line with
global best practices. We not only have a role in helping ourclients and partners address this issue, it is also imperativethat we lead by example in tackling climatechange throughout our operations.

In 2022, we appointed Richard Hamilton to lead State Street’s
approach to ESG strategy, risk, governance, and disclosure
as Senior Vice President for ESG. One of his key focus areas
is climate and our approach to managing climate risks, which
has become an area of intense focus throughout the world,
particularly from regulators. We have a significant global
footprint and each territory is looking to organizations likeours to provide guidance and leadership on climate change.

In addition to managing potential climate change risks to ourbusiness, we have also developed a strategy to reduce ourenvironmental footprint. This is not only the right thing to do,it also makes sound business sense. Diminishing our
impact on the environment reduces our costs, engages our
personnel, and demonstrates best practice to our clients andportfolio companies.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

57

STATE STREET CORPORATION | 2022 ESG REPORTHOMEPROGRESS AGAINSTE N V I R O N M E N TA L G OA L S

PROGRESS AGAINST OUR
O P E R AT I O N A L S U S TA I N A B I L I T Y
GOALS

40%

We continue to set a high standard with regard to ourglobal targets and ongoing commitment to environmental
stewardship. We recently announced that in line with global
best practice, we have updated our science-based carbon
target to a 1.5 degree scenario from our prior well-below
2 degree level. This bullish goal is to be achieved over the sametimeline, namely by 2030 for Scope 1 and Scope 2 emissions.
This translates to a reduction of 46 percent from the 2019baseline, rather than 27.5 percent.

2030
GOAL

Our strategy for achieving this remains unchanged; we have
simply committed to being more aggressive.

27.5%

25%

Carbon emissions
reduction by 20301

Water reduction(m3) by 2030

M E A S U R I N G O U R E N V I R O N M E N TA L
IMPAC T

25%

We consider the impacts of climate change in relation to ourreal estate portfolio. We take a programmatic approach toreviewing emissions and take steps to move further toward
our environmental goals. In line with our financial reporting,each quarter we assess our environmental footprint at all
our locations to determine if we are in line with expectations
and analyze the impact of our mitigation strategies. This is an
integral part of our climate risk management objectives andpart of our overall business approach.

INTRODUCTION

CLIENTS

1 Goals are against 2019 baseline.

GOVERNANCE

SOCIALCARBONWATERENVIRONMENTAPPENDIX

58

STATE STREET CORPORATION | 2022 ESG REPORTHOMER E D U C I N G O U R E N V I R O N M E N TA L
FOOTPRINT
In 2022, we reduced our absolute carbon footprint by 25%.
This success was largely the result of a series of programs
we have implemented, including right sizing our real estate
portfolio to accommodate a hybrid workforce and energy
savings opportunities. These programs include optimizing our
IT hardware and upgrading our boilers to reduce our natural
gas consumption. Furthermore, we realized the full benefit ofseveral projects we implemented at the end of 2021, including
lighting, chiller, and UPS upgrades.

M A I N TA I N I N G C A R B O N
NEUTRALITY
This year we continued to maintain carbon neutrality for
Scope 1 and Scope 2 emissions. At State Street, we seek tominimize our location-based emissions via our science-basedtarget, and by procuring renewable energy credits (RECs) and
offsets for our residual energy and emissions. Through carefulmanagement and carbon offsets, we also continue to achievecarbon neutrality for all our corporate travel.

INTRODUCTION

CLIENTS

59

R E D U C E D WAT E R C O N S U M P T I O NS U S TA I N A B L E B U I L D I N G D E S I G N

We have continued to exceed our water target of a 25%
reduction from a 2019 baseline with a 40% reduction in
2022. This reduction is less than we recorded in 2021, which
we anticipated, given our increased in-person attendancein 2022. As we continue to return to pre-pandemic in-officeattendance, we anticipate this level to continue to decline.
To reduce our water consumption, we continue to pilot
xeriscaping (landscaping that reduces the need for irrigation)and investigate other water reduction activities.

Where we can, we make decisions in our real estate portfolio toaddress our footprint and where we have leased premises, wechoose sustainable real estate.
One of our leading achievements in sustainable building designand carbon reduction infrastructure is the operation of solar
panels in our John Adams Building, which is a large building in
Quincy, Massachusetts, and one of the few we own. The arraycan provide enough power for the building's demand and theinitiative demonstrates our ability to progress toward energy
grid independence.

REDUCING OUR WA S TE
Having achieved our recycling target in 2021, we are currently
pursuing alternative waste reduction targets, metrics, andcertifications, specifically starting with our new headquarters
at One Congress Street in Boston, Massachusetts. We
anticipate then exporting these building operations,processes, and programs to other locations throughout
our global portfolio.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMETA SK FORCE ON CLIMATE-REL ATEDFINANCIAL DISCLOSURESWe believe that climate change presents material risks andopportunities that companies should analyze, prioritize,
and ultimately disclose. As the financial services industry,including banks, asset managers, and asset owners, continues
to acknowledge and consider this fact, we are committed toproviding transparency into our own activities regarding how
we approach and manage issues related to climate change.

State Street Global Advisors, our Investment Managementbusiness, published its first TCFD Report in 2022, and will
publish its next TCFD Report in 2023.

Since 2017, State Street has supported the mission andobjectives of the Task Force on Climate-related Financial
Disclosures (TCFD). The TCFD was set up in 2015 by the
Financial Stability Board to develop recommendations on thetypes of information that companies should provide to theirinvestors and other stakeholders to appropriately assess risks
related to climate change. The TCFD reporting principles coverfour main areas: governance, strategy, risk management, andmetrics and reporting. This report provides an update on State
Street’s approach across these four areas.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

60

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGOVERNANCEC L I M AT E R I S K G O V E R N A N C E S T R U C T U R E

In 2018, our Board of Directors assumed responsibility foroversight of environmental, social, and governance (ESG)
obligations, initiatives, and strategies. In 2021, we formalized
our existing governance over ESG initiatives and activities
by specifically including oversight responsibilities in thecharters of each of the following Board committees: Examining
and Audit, Human Resources, Nominating and Corporate
Governance, Risk, and Technology and Operations. During thisprocess, the Risk Committee of the Board of Directors added
responsibility for the risk management components (including
climate risk) of State Street's ESG obligations, initiatives, andactivities to its mandate.

FULL BOARD
CLIMATE STRATEGIC RISKS ANDOPPORTUNITIESState Street's climate risk management efforts are overseenby the Management Risk and Capital Committee (MRAC), whichis the senior oversight and decision-making body for financial
risk and capital and liquidity management, which oversees thefirm's management of climate risk and climate risk regulatory
requirements. Climate and ESG working groups provide
oversight for the development of climate risk identification,assessment, and management frameworks.

RISK COMMITTEETECHNOLOGY &OPERATIONS COMMITTEE

EXAMINING & AUDITCOMMITTEEMANAGEMENT RISK AND
CAPITAL COMMITTEETECHNOLOGY AND
OPERATIONAL RISKCOMMITTEE

BUSINESS CONDUCTCOMMITTEE

Financial Risk and Program/
Execution Oversight

Resiliency
Risk

Disclosure
Risk

CLIMATE AND ESG WORKING GROUPS
Development of climate risk identification,assessment, and management frameworks

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

61

STATE STREET CORPORATION | 2022 ESG REPORTHOMES T R AT E G Y
Climate change has the potential to impact many parts of ourbusiness, including through the value of the investments on
our balance sheet, the locations in which we operate, and thefinancial condition of our clients.
Across our company, we incorporate climate change into ourbusiness strategy and planning in the following ways:• Assessing climate-related risks and opportunities on
our balance sheet. We evaluate the impacts of climaterelated factors on the assets we invest in on our balance
sheet to avoid the negative near- and long-term impacts ofclimate change and to ensure we are prepared to invest ourbalance sheet in assets that align with our climate change
goals over our investment horizon. In 2022, we released
our Sustainability Bond Framework and issued our first
Sustainability Bond. Issuances under the Sustainability
Bond Framework may support one or more of eight U.N.
Sustainable Development Goals, including climate action. In
addition, our tax-advantaged investments group maintained
two lines of tax-advantaged sustainable investments, inaffordable housing and renewable energy.
• Protecting the resiliency of our infrastructure andoperations. Given the global interconnected financial
markets in which we operate and the changing nature of

INTRODUCTION

CLIENTSthreats that could impact operations — particularly withrespect to geopolitical events and increasing cyber threats— ensuring we are continuously assessing the resilience of
our operations is of paramount importance. We, therefore,take a proactive, ongoing, holistic approach to identifying
a range of disruption threats, be they natural, technical, or
adversarial in nature. This includes continuous assessmentof geopolitical, cyber, and climate-related threats bothnear- and longer-term in nature. The potential impact of
this is also examined, which may result in the identificationof vulnerabilities in the resilience of our operations. Where
appropriate we seek to remediate these through a variety
of means. These may be short-term in nature (e.g., thetransfer of work from one location to another, establishing
split operations capabilities) or longer-term in nature (e.g.,through the careful repositioning of resources to minimize
impact where possible). Our business continuity anddisaster recovery programs are key to ensuring we canabsorb disruptions should they occur. These programs set
standards that require recovery strategies to be in place
and regularly tested. These standards, by way of example,
include consideration of attributes of the locations of ourglobal workforce and related public infrastructure, climate,
and geopolitical factors that could impact their work.
• Transitioning to a low-carbon economy. We continue toset a high standard with regard to our global targets andongoing commitment to environmental stewardship. We

GOVERNANCE

SOCIAL62

recently announced that in line with global best practice
we have updated our science-based carbon target to a
1.5-degree scenario from our prior well-below 2-degreelevel. This bullish goal is to be achieved over the sametimeline, namely by 2030 for Scope 1 and Scope 2
emissions. This translates to a reduction of 46.2 percent
from the 2019 baseline, rather than 27.5 percent.
• Supporting client needs around climate risk management.
As a custodian of and service provider for client assets,
we are committed to providing our custody clients withinformation that enables them to assess the climate changerisks present in their portfolios and thereby enable themto assess their risk exposures today and in the future,
fulfill their own TCFD goals, and comply with any relevant
disclosure or regulatory obligations. Through State Street
Total ESGTM, we are well positioned to provide solutions
that ease the challenge of ESG data measurement, allowing
clients to focus on identifying ESG risks and opportunities
within their portfolios.

RISK MANAGEMENT
Our approach to risk involves all levels of management, fromthe Board and its committees, to each business unit and each
employee. Responsibility for risk oversight is allocated sothat risk decisions are made at an appropriate level and are

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

C L I M AT E R I S K Q U A D R A N T S

subject to robust and effective review and challenge. Risk
management is the responsibility of each employee and is
implemented through three lines of defense: (1) business units,
which own and manage the risks inherent in their business,are considered the first line of defense; (2) Enterprise Risk
Management and other support functions, which provide thesecond line of defense; and (3) Corporate Audit, which assesses
the effectiveness of the first two lines of defense.

1

CLIMATE CHANGE AND RISK CONSIDERATIONS
Based on common definitions established by the global
network of central bankers and supervisors, climate risks
are defined as including physical risks, related to the physicalimpacts from climate change, and transition risks, related tothe process to adjust to a net-zero emission economy.
As a global financial institution and service provider, climatechange has the potential to impact us broadly, including
through the impacts of climate-related risks on our balance
sheet, our physical footprint and operations, the assets wecustody and service, and the assets we manage. In addition,
climate-related risks may impact our strategy and reputational
standing, and evolving regulatory requirements may create
new regulatory compliance risks. The key channels throughwhich climate-related risks may impact us are illustrated in thegraphic on the right.

2
FINANCIAL (DIRECT)RESILIENCY

Risk of financial loss from climate
impacts to State Street’s assets or
exposures including through its balance
sheet and loan bookRisk of impacts to State Street’s
operational continuity including
through damage to its own or to a thirdparty physical plant, property,
or operating environment

PRODUCT (BUSINESS RISK)DISCLOSURE (BUSINESS RISK)

Risk from lack of standardization or
oversight in offering “green” funds or
climate-related products, including
potential divergence from client
expectations or product ineffectiveness

Reputational or regulatory implications
and impacts of inconsistencies
between public statements, commitments,
or disclosures, and internal practices,
including potentially ineffective
internal controls

3

4
STRATEGIC RISKREPUTATIONAL RISKREGULATORY RISKINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

63

STATE STREET CORPORATION | 2022 ESG REPORTHOME

C L I M AT E R I S K P R O G R A M C O M P O N E N T S

In 2021, in recognition of the potential for climate-related risks
to impact State Street through these channels, the firm began
incorporating climate-related risk considerations into its risk
management framework.
These efforts have coalesced into the establishment of aclimate risk management program that includes the key pillars
illustrated on the right.
RISK IDENTIFICATIONIDENTIFY

MANAGE

CLIMATE RISKIDENTIFICATION

CLIMATE POLICYQUALITATIVE RISK APPETITEKEY RISK INDICATORS

Because risks evolve over time, risk identification is an iterative
activity that requires input from across the firm. State Street’s
established process for risk identification, the Material Risk
Identification (MRI) process, utilizes a bottom-up approach toidentify the firm’s most significant risk exposures, focusedon the risks that can have a material impact on the firm. The
resulting inventory of material risks is organized into State
Street’s Top Risk Framework, depicted on the following page.

INTRODUCTION

CLIENTS

GOVERNANCE

MEASUREDISCLOSE

COUNTERPARTY ASSESSMENTVOLUNTARY DISCLOSUREOPERATIONAL RESILIENCEREGULATORY REQUIREMENTSSCENARIO ANALYSISGOVERNANCE AND CONTROLSSOCIALENVIRONMENTAPPENDIX

64

STATE STREET CORPORATION | 2022 ESG REPORTHOMETOP RISK FRAMEWORKRISK THEMES

Climate risk drivers can impact these top risks through thetwo transmission channels described above: (1) physicalrisk, which may arise from near-term changes in weather
patterns and result in more frequent or more powerfulor acute weather events, or from longer-term changes
in the physical environment such as rising sea levels orsustained average temperature increases, and (2) transition
risks, which may arise from the regulatory, policy, legal,
technology, and market changes that occur in support of
the transition to a net-zero economy and which may include
carbon taxes, regulatory changes, and shifting consumer
preferences, among others. The impact of climate risk
drivers through these transmission channels may vary intheir manifestation or intensity depending on how climaterelated events, i.e., the speed of physical climate changes orof a climate transition, evolve, but illustrative examples of
how physical and transition risks can act as transmission
channels are shown in the table on the next page.

FINANCIAL RISKS

NON-FINANCIAL RISKS

BUSINESS RISKSRISKSINVESTMENT PORTFOLIO
MARK-TO-MARKET RISKOPERATIONAL RISKSTRATEGIC RISKINTEREST RATE RISKTECHNOLOGY ANDRESILIENCY RISKMODEL RISKTRADING RISKCORE COMPLIANCERISKINVESTMENTMANAGEMENT RISKCREDIT RISKLIQUIDITY RISKREPUTATIONAL RISKINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

65

STATE STREET CORPORATION | 2022 ESG REPORTHOMETop Risk
Financial
Risks

NonFinancial
Risks

Business
Risks

66

Transmission Mechanism
Mark-to-Market

Climate-related risks may impact the value of assets in which we invest, including through higher credit spreads in geographies or sectors exposed to higher physical ortransition risks

Interest Rates

Climate-related events may result in repricing of risks that may impact interest rates, resulting in unexpected rate changes or impacts to net interest income

Trading

Climate-related risks may impact the value of assets in which we make markets or where we have exposure to clients and counterparties

CreditCounterparties to whom we extend credit may be impacted by climate-related risks, which may impact their creditworthiness and ability to repay

Liquidity

Climate disruptions may impact the ability of our clients and counterparties to access capital or funding markets and cause them to draw on liquidity facilities we provide
Climate risks may result in decreases in client assets, resulting in lower levels of client deposits on our balance sheet

Operational

Increasing frequency or severity of climate-driven events may disrupt our operations or those of our third parties, leading to a higher potential for operational errors or losses

Technology and
Resiliency

Climate issues could impact our technology environment through operational disruptions or data center outages
Increasing frequency or severity of climate-driven events may disrupt our operational resiliency through impacts to our critical services, including damage to physical assets,
disruptions to employees, or impacts to our third parties

Core Compliance

Regulatory fines or other sanctions that may result in financial impact may result from failures to comply with applicable laws, regulations, public commitments, or internal
policies and procedures
Climate-related litigation may increase in light of growing scrutiny around climate-related disclosures (including fund disclosures) and commitments, resulting in legal liabilities

Strategic

Mismanagement of physical and transition risks by our clients may result in declining levels of assets under custody or administration, leading to impacts on our fee revenues
Inability to provide best-in-class climate risk-related products and services may erode our competitive position in the market, impacting fee revenues

Model

Lack of historical experience with modeling climate risk or a lack of appropriate climate data may result in the mispricing of climate risk impacts

Investment Management Our climate-related funds may underperform their benchmarks, eroding our competitive position in the market and impacting fee revenues
Reputational

INTRODUCTION

Increasing stakeholder focus on corporate behavior with regard to climate stewardship and climate commitments may lead to increased reputational exposure; failure to makeand meet commitments may result in loss of clients, employees, or investors

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

C L I M AT E R I S K I D E N T I F I C AT I O N P R O C E S S

In 2022, State Street utilized the MRI process to identify
the climate transmission channels relevant to ourmaterial risk inventory, utilizing a series of structured
global workshops across the firm. The full workshop
process is illustrated in the graphic on the right.

INPUTS

BUSINESS UNITRISK ASSESSMENTRISK INVENTORY
MAPPING

GOVERNANCE
REVIEW

MARKET RISK EXPOSURES

Business-specificbackground materials
and open questions

Climate driver
mapping to corporatematerial risk inventory

Climate Risk 
Working GroupCREDIT RISKE XPOSURESMRAC

LIQUIDITY PROFILEPRODUCTS
CLIENTSPROCESSES 
BUSINESS S TRATEGY

Global business units workshops (8 workshops)

CLIMATE RISK SCENARIOS

Climate Risk
Management
Framework

Business unit 
climate risks–Key climate
risk drivers

The climate risk identification process utilizes a bottom-up approach
to identify State Street’s most significant risk exposures across all on- and off-balance-sheet
risk-taking activities

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

67

STATE STREET CORPORATION | 2022 ESG REPORTHOME

Key climate risk transmission mechanisms identified throughthis process were organized based on their potential impact
areas and mapped to State Street’s material risks across the Top
Risk Framework categories as shown in the table on the right:

SourceRisk Driver

Top Risks
ImpactedMarketAcute climate event impacting our counterparty(s)Market repricing of climate risk
Secular declines in regional economies or sectors

Operational Resiliency of critical operations to climate risks

DirectFinancial

Operational ProductResiliency• Credit• Mark to Market• Interest Rate
• Liquidity• Technology &Resiliency• Strategic• Reputational

Climate model risk
Climate data availability

Strategic

Misaligned climate strategies acrossbusiness lines
Sustainability concerns around our clients oroperational footprint• Model Risk

• Strategic• Technology &Resiliency• Strategic• Reputational

Making and meeting climate commitments
Internal consistency of climate commitments
Green product strategy/design
Misselling/improper disclosures• Compliance• Strategic• Reputational

Regulatory Meeting our regulatory obligations

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

68

Disclosure

STATE STREET CORPORATION | 2022 ESG REPORTHOMERISK ASSESSMENT AND MEASUREMENT
All assets may face some level of inherent risk from climaterelated factors. However, the residual risk of any asset, and,ultimately, the risk of financial loss for that asset, must take into
account asset-specific characteristics and risk mitigants. See
the illustrative diagram below:

INHERENT RISKSSTRONGPROTECTIONINHERENT RISKSWEAKPROTECTION

of our operations to changes in the physical environment. This
includes assessing the frequency and severity of major weather
events that may impact our operations, induce damage, disrupt
our supply chain, or potentially hinder our ability to provide
products or services.

This approach forms the foundation for assessment of thelonger-term risks of climate change on our operational
resiliency through the mapping of key own locations,infrastructure, and third parties against the critical services weprovide for clients. See illustrative map on the next page.

We are committed to protecting our clients from any service
interruptions including those related to climate change, in
addition to taking responsibility for mitigating our climate
impacts. The risks to our operational resilience addressed in ourbusiness continuity and disaster recovery strategies include:

Some of the steps we have taken or will consider taking to
mitigate climate-related risks to our infrastructure include:• The loss of, or temporarily restricted access to, buildings,
or operationsLARGE
RESIDUALRISK

CLIMATE-RELATED RISKS TO OUR PHYSICAL ASSETS• Business, operations, or technology impacts to employees
because of severe weather
Our building, operations, and technology teams also use thisapproach when exploring potential new business locations. If a
property is in an area that has a higher risk of climate change
effects, we assess the risks for our operations, and implement
appropriate infrastructure to safeguard against any businessinterruptions that could occur as a result.

To understand our operational vulnerabilities related to climate
or environmental factors, we regularly evaluate the exposure

INTRODUCTION

CLIENTS• Locating critical infrastructure on higher floors of buildings• Adapting business continuity plans to include scenarios of
extreme weather incidents• Innovative approaches to energy efficiency• The loss of, or damage to, technology, and operations
infrastructure

SMALL
RESIDUALRISK69GOVERNANCE

SOCIAL• Flexible commuting options for employees
In addition to our existing assessments, we are evaluatingclimate-related scenario analysis as a tool to inform ourdecision-making, including evaluating the potential impacts toour buildings' critical systems as a result of specific climate
scenarios (including sea level rise under a 3.6⁰ C and a 1.5⁰ C
scenario), as well as potential severe weather event impacts
and water stress resulting from the effects of climate change
in the medium to long term. We also include the evaluation ofclimate-related event risks in our Operational Risk scenario
analysis program, where such events are incorporated as partof our evaluation of potential operational risk losses.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEE N D -T O - E N D P R O C E S S M A P

STATE STREET
Location 2

Location 1
ACUTE RISK

Flood risk,
ensure adequate
preparation

Risk of sea level
rise, consider officelocation strategy

CHRONIC RISK

Location 3

THIRD PARTIES AND INFRASTRUCTURE

ACUTE RISK

Risk of waterstress, consider
impact onservice provision

CHRONIC RISK

Higher Risk

INTRODUCTION

Location 3(third party)

Location 2(financial
market utility)

Location 1(data center)

Medium Risk

CLIENTS

Lower Risk

GOVERNANCE

SOCIALENVIRONMENTENVIRONMENTAPPENDIX

70

STATE STREET CORPORATION | 2022 ESG REPORTHOME

CLIMATE-RELATED RISKS TO OUR FINANCIAL ASSETS
Climate-related risks to financial assets are influenced by a number of factors that may act as risk drivers or as risk mitigants,
and include:

Risk Mitigants

Rationale

Asset Class

Asset class characteristics may increase or decrease inherent climate risk. For example, sovereign bonds may
have lower inherent climate risk related to diversification of exposures and ability to levy taxes versus corporates,
which may have more concentrated sources of repayment

Credit Quality

Counterparty credit quality is a key determinant of an entity’s ability to withstand business fluctuations, including
as related to climate drivers. An entity with poor credit quality may have limited ability to withstand the financial
impacts of climate-related impacts

Tenor

Many climate risk drivers are expected to intensify over the medium to long term. Therefore, shorter-duration
assets provide some level of protection given the ability to reevaluate risk and adjust exposures in light of changing
climate factors

Diversification

Climate risk impacts can vary broadly across and within geographies and industries. Diversification of our balance
sheet across and within geographies and sectors may help mitigate the impact of climate risks

Insurance

Insurance may provide some protection against physical climate risks

Risk Drivers

Rationale

SectorSome sectors may have greater exposure to transition risks, particularly in a disorderly transition scenario

Correlation of
Climate Risks

Physical and transition climate factors may occur in an interconnected manner, with higher correlations likely toresult in higher losses, even in a diverse portfolio

In addition to these mitigants and drivers, the adaptive capacity
and transition planning of counterparties are important factors
to consider in understanding climate risk exposure, with these
two factors able to act either as risk mitigants or risk drivers.
Adaptive capacity is defined as the ability to adjust to reduce
potential damage and to respond to the negative consequencesof climate events, while transition planning is the act of putting
in place strategies to harness that capacity to mitigate therelevant risks. Entities may or may not sufficiently plan forclimate risks or have the capacity to follow through on theirplans, so these factors may either decrease or increase theirrisk exposure. Given a lack of complete and comparable dataon adaptive capacity and transition planning, these factors are
not yet used consistently in evaluations of counterparty climaterelated risk exposure.
BALANCE SHEET RISK ASSESSMENT
We have assessed each asset class on our balance sheet
considering the factors described above. The table on thefollowing pages shows our assessment of the inherent andresidual risks of our balance sheet by asset type, including
consideration of the relevant risk mitigants. In addition, thetable includes potential drivers of higher risk that could impact
residual risk levels should they emerge.

Cost and Availability The availability and cost of insurance may shift as insurers become more sophisticated in modeling the impact ofclimate-related risks
of Insurance

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL71

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEAsset Type

Inherent Risk

Real Estate
MortgageHigh – A real estate mortgage is a
Agency Residential andconcentrated investment in a single
Commercial Mortgage-Backed
physical location, which could be at risk Securities (MBS and CMBS)
of significant loss in extreme climaterelated circumstances

Corporates

INTRODUCTION

State Street Portfolio

High – Corporates are more highly
leveraged than other investments
and have complex exposures, but
exposure to climate risk is highly
dependent on sector

CLIENTS

Risk Mitigants

Residual
Risk

Potential Drivers of Higher Climate-related Risk

$51

• High credit quality of senior tranches• Diversification by geography and obligor• Government agency guarantee• Insurance coverage

Very Low

Availability and cost of insurance
Correlation across underlying exposures

Non-Agency Residential andCommercial MBS$2• High credit quality of senior tranches• Diversification by geography and obligor• Insurance coverage

Low

Availability and cost of insurance
Correlation across underlying exposures

Commercial Real Estate
Mortgages (CRE)$3• Seniority of loans• Low loan to value• Insurance against extreme weather andflood when necessary

MediumAvailability and cost of insurance
Correlation across exposures

Corporate Bonds$2• High credit quality• Seniority of loans• Short tenor of exposures

MediumSectorCorporate climate adaptation capacity andtransition plans

Leveraged Loans$4• Seniority of loans• Short tenor of exposures

High

SectorCorporate climate adaptation capacity andtransition plans

Collateralized Loan Obligations(CLOs)$8• Diversification by geography and obligor

Low

Correlation across underlying exposures

GOVERNANCE

Exposure($B)972

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEAsset Type

Inherent Risk

State Street Portfolio

Exposure($B)9Consumer

Low – Drivers of default in consumer
loans are only indirectly linked toclimate risk drivers

Consumer Asset-Backed
Securities (ABS)Sovereigns

Medium – These entities are generally
large and have highly diverse
income streams

Municipalities

Funds

9

Risk Mitigants

Residual
Risk

Potential Drivers of Higher Climate-related Risk

$5

• High credit quality of senior tranches• Significant diversification by geography
and obligor

Very Low

Correlation of losses to climate

Sovereigns and Non-U.S.
Agencies$32• High credit quality• Exposure primarily to countries withstrong climate adaptive capacity andtransition planning

Very Low /Low

Sovereign climate adaptation capacity andtransition plans

Supranationals$9• High credit quality

Low

Regional concentrations of exposures, as relevant
Sovereign climate adaptation capacity andtransition plans$1• High credit quality

MediumAvailability of federal disaster recovery funds
Availability and cost of insurance
Municipal climate adaptation capacity andtransition plans

Municipal Finance (Loans andCommitments)<$1• Extremely high credit quality• Short tenor of exposures• Majority of exposure is undrawn

Low

Availability of federal disaster recovery funds
Availability and cost of insurance
Municipal climate adaptation capacity andtransition plans

Fund Finance$16• Low leverage• Diversification• Collateral• High credit quality•Short tenor of exposures

Low

Lack of a strategy to manage climate risk
considerations at the fund sponsor level
Potential concentrations in higher-risk sectors

Medium – Municipals are concentrated Municipal Bonds (Publicly
in a single geographic area and may be Traded Bonds)
vulnerable to extreme climate-driven
circumstances

Medium – Diversification reduces risk
relative to corporates

As of December 31, 2022

INTRODUCTION

CLIENTS73

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

HIGH

Based on the composition of our balance sheet, we have limited
pockets of direct exposure to higher climate risk, and, given therisk mitigants cited above, we believe the risk of financial loss
from climate risk-related factors to the assets on our balance
sheet is limited and generally well-managed within our existingrisk framework parameters. We also identified potential driversof higher climate-related risk for each portfolio; these factors
will be included in climate risk assessments on an ongoingbasis to ensure we are capturing climate-specific downside
risks to our balance sheet.

MUNI
BONDSCRE

MEDIUM

PHYSICAL RISKIn 2022, we prioritized development of our understanding of theclimate-related risks posed to balance sheet assets identified
as having the most direct potential exposure to climaterelated risks, developing structured bottom-up methodologies
to assess the inherent and residual risk of corporate bonds,
leveraged loans, municipal securities, and commercial realestate loans. These assessments have been incorporated into
annual due diligence processes and have so far confirmed thelimited nature of the vulnerability of our balance sheet assets toclimate-related risk impacts.

BALANCE SHEET RESIDUALRISK ASSESSMENT

LOW

MUNI
FINANCE

CLOs

NON-AGENCY
MBS
AND CMBSCORPORATEBONDSLEVERAGEDLOANSMEDIUM

HIGH

SOVEREIGNS,
SUPRANATIONALS,
AND NONU.S. AGENCIESIn addition, State Street assesses country-level climate risks
across a subset of 93 countries using a model that incorporates
country-specific physical and transition risk metrics to evaluate
countries’ relative climate-related risk based on factors
including vulnerability to natural disasters, emissions intensity,and economic reliance on fossil fuel revenues.

VERY LOWAGENCYMBS
AND CMBS

FUNDS
CONS.
ABS

VERY LOW

LOW
TRANSITION RISK

Relative size of balance sheet exposure for asset types

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

74

STATE STREET CORPORATION | 2022 ESG REPORTHOMEThis model was used to assess relative climate risks for thesovereign, supranational, and non-U.S. agency segments of thebalance sheet. In addition, the model was used to assess theremainder of the securities in our investment portfolio, which is
our portfolio of publicly traded securities, based on the countryof risk of the assets. Based on the model outputs, the majorityof the assets in our investment portfolio are in countries
with relatively low climate-related risks among the countries
assessed (see table below).
Country Climate
Risk Classification

Sovereigns,
Supranationals,
and Non-U.S.
Agencies10

All Other
Investment
Portfolio
Assets11

CARBON INTENSITY

Low

93.6%

98.3%

Medium

5.9%

1.7%

High

0.5%

0%

0%

0%

Very HighWe also conduct assessments of second-order risks in our
portfolio by assessing the climate risk-related preparednessof companies to whom we provide credit facilities through ourFund Finance business.
Clients are assessed across various dimensions of theircommitment to managing climate-related risks based on
1011

their responses to the Climate Disclosure Project (CDP)questionnaire from the most recent calendar year, including
whether they have a dedicated climate risk team, whether they
conduct climate risk stress tests, and whether climate risk
considerations impact their business decisions. Approximately
73 percent of our exposure is to clients who the CDP deems
to be at the “leadership” or “management” level for theirintegration of climate-related risks into their business practices,while approximately 8 percent of clients declined to respond to
the CDP questionnaire in the timeframe evaluated.

For the publicly traded companies in our investment portfolio,
where available, we evaluate the carbon intensity of ourportfolio relative to the index average for the S&P 500. Our
analysis covers 92 percent of the corporate bonds in ourinvestment portfolio. Overall, the State Street portfolio is morecarbon-intensive than the index. While State Street’s portfolio
generally has a lower carbon intensity than the index on asectoral basis, our higher overall carbon intensity is driven
by a higher concentration in high-quality, liquid securities,
pursuant to the objectives of a custody bank investment
portfolio. Carbon intensity is measured as tons of CO2
per million dollars of revenue.

Modeled results include 98% coverage of the Sovereigns, Supranationals, and non-U.S. Agencies exposures
Modeled results include 97% coverage for all other assets in the portfolio

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

Weighted Average
Carbon Intensity75

S&P 500

State Street

217

247

SCENARIO ANALYSIS
In 2022, we conducted an initial scenario analysis exercise
to assess how climate physical and transition risk drivers
might impact our financial and non-financial risks. Using a
combination of qualitative analysis and subject-matter expert
inputs, we assessed impacts to portions of our balance sheet
and two key non-financial risks.
To assess credit risks in our corporate and CRE portfolios, weused existing credit risk modeling constructs, adjusting model
inputs to simulate the impacts of climate-related stresses.
These input adjustments were based on academic and industry
research quantifying climate risk impacts under relevant
scenarios, with expert review of the applicability of the data to
the relevant credit segments. We tested a range of inputs tosimulate both more stressful and less stressful scenarios. Our
analysis stressed physical or transition risk based on whichrisk was deemed to be the primary driver of downside risk
for the asset class, with this determination made during theclimate risk identification process. For our CRE portfolio, we
assessed physical risks, and for the corporate sectors tested,
we assessed transition risks. Using this methodology, we
found that while climate-related drivers could have significant

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

impacts under very stressful assumptions, credit losses for the
portfolios remained limited due to the high fundamental credit
quality of the investments.
For our non-financial risk assessments, we utilized theexisting scenario analysis methodology used for quantifying
non-financial risks for regulatory capital purposes, e.g., theComprehensive Capital Analysis and Review and the Internal
Capital Adequacy Assessment Process exercises. To adapt themethodology to address climate-related risks, we reviewed
historical climate-related loss incidents impacting financial
institutions and used this data to develop plausible climaterelated loss scenarios where possible. For risk types where

INTRODUCTION

CLIENTShistorical data was not available or relevant, we createdhypothetical scenarios modeled on available loss incident data
but with the integration of climate risk components. These
scenario approaches were supplemented by internal data toincorporate State Street-specific contextual information. Seniorsubject-matter experts across State Street participated inworkshops to review the historical data, verify the applicabilityof the scenarios for State Street and assess the impacts of the
scenarios across key drivers.

continue to evolve to take into account the changing severity
or frequency of climate-driven events should these shifts
impact the sufficiency of measures currently in place. The
outcomes for compliance risks related to climate regulations
were more challenging to assess given the evolving andglobally divergent nature of the regulatory and market
environments. Tail events involving material breakdowns ofcontrols or significant changes in regulatory or legal views
could have serious consequences, necessitating continued andheightened vigilance.

For resiliency risk, subject-matter experts ultimately
determined that the risk of loss or interruption of service would
be primarily driven by unanticipated gaps in our business
continuity planning, acknowledging that such planning must

GOVERNANCE

SOCIAL76

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

77

M E T R I C S A N D TA R G E T S

Transparency and disclosure regarding climate metrics are
critical to achieving the objectives of the TCFD framework. We
continue to actively work with TCFD, other asset managers,
climate data providers, and industry associations to achieveconsensus on the climate metrics we and the companies weinvest in use, according to their sector and how they calculate
and will report on those metrics.
From a risk management perspective, key risk indicators (KRI)
are critical to ensure progress in measuring and monitoring
our progress against both understanding and controlling forthe climate risks that may impact State Street. KRIs being
implemented are comprised of metrics showing our progress
both in mapping our key exposures and tracking those
exposures determined to have greater direct exposure toclimate-related risk drivers.

12

GREENHOUSE GAS EMISSIONS (METRIC TONS CO2E)
DIRECT AND INDIRECT GHG EMISSIONS (SCOPES 1, 2, AND 3)12CO2e Emissions (Metric Tons)

2022

2021

2020

2019

2018

CO2 Direct

4,956

4,427

4,993

6,582

7,335

CH4 Direct

13

11.52

12.89

16.90

17.13

N20 Direct

3.17

2.71

2.92

3.73

4.60

HFCs Direct

1,859

2,26

2,411

2,340

2,458

Total Direct (Scope 1)

6,831

6,709

7,420

8,943

9,814

Biogenic CO2

0.70

0

1.42

4.39

4.50

Total Indirect (Scope 2)

57,13556,98767,04975,72878,678

Total Indirect (Scope 3)

31,75911,05637,48890,872

95,888

Total GHG Emissions

95,72574,752111,956

175,543

184,380

Scope 2 is location-based methodology

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

78

GHG INTENSITY13

GHG Emissions Intensity Ratio
List of Included Gases

2022

2021

2020

2019

2018

1.59

2.08

1.85

2.02

2.21

Carbon Dioxide (CO₂), Methane (CH₄), Nitrous Oxide (N₂0)

GHG REDUCTION

Total GHG Reductions in
Metric Tons CO2 Equivalent

13

Denominator

2022

2021

2020

2019

2018

Emissions
Reduced:Direct (Scope 1)
and Indirect(Scope 2)

1,754

1,336

1,025

1,333

1,652

Intensity ratio is Scope 1 and Scope 2 (not Scope 3)

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

79

ENERGY USETOTAL INTERNAL AND EXTERNAL ENERGY CONSUMPTION
Consumption by Fuel Type

UNIT

2022

2021

2020

2019

2018

Natural Gas

GJ

85,61077,47389,266

119,054

132,695

Diesel

GJ

7,069

5,273

4,785

5,308

5,960

Total Direct Energy

GJ

92,67982,746

94,051

124,361

138,655

Electricity

GJ

674,231684,706

753,866

807,157

815,297

Heating

GJ

20,27323,298

26,11339,222

34,608

Cooling

GJ

7,939

7,777

5,261

4,865

3,459

Total Indirect Energy (Scope 2)

GJ

702,443715,782785,240

851,244853,365

Business Travel (Nonrenewable)

GJ

84,16913,162

29,788

126,798

202,454

Total Indirect Energy (Scope 3)

GJ

786,539

728,944815,028

1,102,403

1,194,473

Total Scope 1 Fuel Usage

Total Scope 2 Indirect Energy Usage

Total Scope 3 Energy UsageINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

80

ENERGY INTENSITY RATIOSCOPE 3
Methodologies for the estimation of carbon emissions are
evolving. We currently think of the potential for disclosure under
three pillars:

UNIT

2022

2021

2020

2019

2018

Numerator

KWH

220,867,291

221,813,319

244,247,646

271,001,367

275,560,881

Denominator

Occupants

40,30630,55240,20042,001

39,996

5,480

7,260

6,076

6,452

6,890

UNIT

2022

2021

2020

2019

2018

Electricity

GJ

11,2342, 04913,85015, 14423, 252

Heating

GJ

15,10816,045000

Total Energy Saved

GJ

26,34218, 093

13,85015,14423,252

Energy Intensity

TOTAL ENERGY SAVEDINTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL

1. Our operational footprint – As in previous years, we maderelevant disclosures in our annual ESG Report.
2. Our asset management business – State Street
Global Advisors is a member of the Net Zero AssetManager initiative.
3. Our own balance sheet – As a custody bank, the majorityof assets on our balance sheet are different from those of
institutions that primarily provide direct financing to theirclients. As of our last public filings, significant portions ofour balance sheet included Agency MBS, ABS, Sovereigndebt, and Municipal paper. These asset classes do not yet
have industry-agreed methodologies to estimate financed
emissions. As a result, our data providers have not yet
been able to provide emissions estimates for more thana small proportion of the assets on our balance sheet.
We are proactively engaging with industry participants as
we work toward defining an appropriate framework for acustody bank and we continue to mature our own internalcarbon accounting methodology. Over time, we expectthat increased consistency in approaches to measure
and report emissions will lead to advances that we canincorporate into our methodology and allow us to enhance
our disclosures accordingly.

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMETARGETSA 2030 science-based target of 27.5% reduction in metrictons of CO2e from a 2019 baseline was set in 2020 after
State Street achieved our 2025 2°C-aligned carbon
emissions reduction target at the end of 2019. We updated
our target to a more stringent 1.5°C-aligned target,
representing a 46.2% reduction in carbon emissions. Pairedwith State Street's commitment to be carbon neutral, which
we achieved for a third year in 2022, this two-pronged
approach involves procuring green power and carbon
offsets for all energy consumption while looking to reduceoverall energy consumption each year. The target covers allof State Street's Scope 1 and 2 emissions under operational
control following the location-based method. Furthermore,State Street is continuing to pursue our water reduction
target of 25% by 2030 following a 2019 baseline. While we
exceeded the target in 2022, we will continue to monitor
this as our office occupancy returns to pre-pandemic levels.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

81

STATE STREET CORPORATION | 2022 ESG REPORTHOMEAPPENDIX83
		

SUSTAINABILITY ACCOUNTING STANDARDSBOARD (SASB) REPORT92

GRI INDEX

113

U.N. SUSTAINABLE DEVELOPMENT GOALS

116

EU DIRECTIVE ON NON-FINANCIAL REPORTING

118

EEO-1 REPORT

120

U.N. GLOBAL COMPACTINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

82

STATE STREET CORPORATION | 2022 ESG REPORTHOMESUSTAINABILITYACCOUNTING STANDARDSBOARD (SASB) REPORTINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

83

STATE STREET CORPORATION | 2022 ESG REPORTHOMEASSET MANAGEMENT AND
CUSTODY ACTIVITIESINTRODUCTION
State Street Corporation is a financial holding company
organized in 1969 under the laws of the Commonwealth of
Massachusetts. We conduct our business primarily throughState Street Bank, which operates as a specialized bank,referred to as a trust or custody bank, that services assets onbehalf of institutional clients.
We have two lines of business: Investment Servicing andInvestment Management.
Our Investment Servicing line of business provides a rangeof services to our clients. Through State Street Investment
Services, State Street Global Markets , State Street Alpha ,and State Street Digital , we provide investment services
for institutional clients, including mutual funds, collective
investment funds and other investment pools, corporate andpublic retirement plans, insurance companies, investment
managers, foundations, and endowments worldwide. Ourfinancial services and products allow our large institutional
SM

SM

INTRODUCTION

CLIENTSSM

investor clients to execute financial transactions daily inmarkets across the globe. As most institutional investors
cannot economically or efficiently build their own technology
and operational processes necessary to facilitate all of theirglobal securities settlement needs, our primary role as a
global trust and custody bank is to help our clients to efficiently
perform services associated with the clearing, settlement, andexecution of securities transactions and related payments.
Our Investment Management line of business provides a broad
range of investment management strategies and products forour clients through State Street Global Advisors. Our investment
management strategies and products for equity, fixed income,and cash assets, including core and enhanced indexing, multiasset strategies, active quantitative and fundamental active
capabilities, and alternative investment strategies span the risk/
reward spectrum of these investment products. Our assets
under management (AUM) is currently primarily weighted toindexed strategies. In addition, we provide a breadth of services
and solutions, including ESG investing, defined benefits anddefined contribution products, and Global Fiduciary Solutions.
State Street Global Advisors is also a provider of exchange
traded funds (ETFs), including the SPDR® brand.

GOVERNANCE

SOCIAL84

TRANSPARENT INFORMATION AND FAIR ADVICEFOR CUSTOMERSFN-AC-270a.1
1) Number and (2) percentage of covered employees with arecord of investment-related investigations, consumer-initiatedcomplaints, private civil litigations, or other regulatory proceedings
There were 0 State Street employees with a record of
new investment-related investigations, consumer-initiatedcomplaints, private civil litigations, or other regulatory
proceedings disclosed in 2022.
State Street has extensive policies, procedures, trainings andcontrols designed to ensure compliance with all applicable
rules and regulations. For more information, see Risk, Ethics
and Compliance.
FN-AC-270a.2
Total amount of monetary losses as a result of legal proceedings
associated with marketing and communication of financial productrelated information to new and returning customers
In 2022, 0 fines or other financial or non-financial sanctions
were disclosed or levied related to legal proceedings associated

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEwith marketing and communication of financial product-related
information to new and returning customers.
State Street discloses all material legal and regulatory
proceedings in our Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q.
FN-AC-270a.3
Description of approach to informing customers about products
and services
When approaching clients or prospective clients about ourservices, we are subject to a range of regulations regarding
the accuracy and fairness of the messaging. The way wecommunicate with our clients varies and includes several
factors including applicable laws and regulations, the type ofclient, and the product or service being discussed. In all cases,
we provide all relevant information to our clients regarding theservice provided, costs, risks, and any warranties regarding
performance. In the case of investments, we provide the fundor product’s constituent documentation (e.g., prospectus) andthe investment strategy, characteristics, fees and expenses,
financial statements, and performance.
EMPLOYEE DIVERSITY AND INCLUSIONFN-AC-330a.1
Percentage of gender and racial/ethnic group representation for(1) executive management, (2) non-executive management, (3)professionals,14 and (4) all other employees

Global Racial/Ethnic Representation
FemaleMale

Not
Disclosed/
Available

Executive
Management

10%

12%

—%

Non-Executive
Management

12%

21%

—%

Professionals
and All Other
Employees

25%

18%

—%

For more information regarding State Street’s approach toinclusion and diversity, including our policies and programs forfostering equitable employee representation across our global
operations, see Diversity, Equity, and Inclusion
and our website.

“Professionals” is defined as follows: Most jobs in this category require bachelor and graduate degrees, and/or professional certification. In some instances, comparable experience may establish a person’squalifications. The EEO-1 Job Classification Guide provides examples of job titles in this category. All other employees include those employees who are not classified as executive management, non-executive
management, or professionals.

14

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIAL85

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

86

US Racial/ Ethnic Group Representation
Asian

Black orAfricanAmericanTwo orMore Races

White

Hispanicor
LatinxAmerican Indianor Alaska Native

Native Hawaiian Not Disclosed/
or Other Pacific
Available
IslanderExecutive Management

12%

4%

—%

75%

4%

—%

—%

3%

Non-Executive Management

25%

3%

—%

63%

3%

—%

—%

4%

Professionals

23%

11%

—%

54%

7%

—%

—%

3%

GOVERNANCE FACTORS IN INVESTMENT MANAGEMENT AND ADVISORY
FN-AC-410a.1
Amount of assets under management, by asset class, that employ (1) integration of ESG issues, (2) sustainability themed investing, and (3) screening

Asset Type

Screening

Sustainability
Themed Investing

ESG Integration

Equities$395,700,000,000$49,400,000,000$17,400,000,000

Fixed Income$44,200,000,000$800,000,000$200,000,000

Cash$6,300,000,000$0$0Other (Alternative Investment, Multi-Asset Class Solutions)$8,700,000,000$0$400,000,000

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEState Street Global Advisors currently has approximately$458 billion in ESG assets under management (AUM), which
comprise about 13% of State Street Global Advisors’ assets
under management as of December 31, 2022. Our methodologyof reporting ESG AUM changed compared to the prior year.
SSGA only reports AUM on accounts that are classified as
ESG accounts per our internal policy. Screening assets include
ESG accounts that utilize a negative or positive ESG screen.
Sustainability Themed Investing assets include only thosethematic strategies that utilize a negative or positive ESG
screen or track a third-party ESG index. ESG Integration assets
include only those strategies that incorporate ESG factors in
the investment process and utilize a negative or positive ESG
screen, or track a third-party ESG index.
FN-AC-410a.2
Description of approach to incorporation of ESG factors ininvestment and/or wealth management processes and strategies

We do not take a one-size-fits-all approach to ESG investing.
As set out below, our approach varies between asset classes
to reflect the investment strategy. Our approach to investing byinvestment area is summarized below and detailed in our ESG
Investment Statement.
Equity Index/Smart Beta
Within our equity index strategies, ESG factors can beincorporated in multiple ways. An equity index itself may either
incorporate ESG characteristics or seek to increase target
exposure to sustainable investment opportunities. Alternatively,
we may integrate ESG as a custom solution in response toclient requests via our beta solutions capabilities. Indexing
strategies with the sole objective of replicating the return of a
non-ESG benchmark do not consider ESG factors in investment
selection, as the primary driver of investment decisions is theobjective of replicating the performance of the relevant index.

Whether clients are focused on risk management, responding
to new regulations, making investments that align with theirvalues, or seeking to enhance long-term performance, our
ESG capabilities can support clients in achieving their ESG
objectives and investment goals.

Active Quantitative Equity
The Active Quantitative Equity team has incorporated signals
derived from ESG metrics into its forecasts of stock returns,
where available, and uses these for all strategies managed
by the team. The ESG signals are included in their model of
expected return forecasts alongside measures representing
other themes such as value, company quality, and investor
sentiment. The team also has the capability to manage

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL

exposure to other measures of ESG on behalf of clients
when requested.
Active Fundamental: Equity — Growth/CoreIn their investment decision-making processes, the Active
Fundamental Equity Growth and Core team uses R-Factor
scores and other ESG data metrics to help isolate specificissues and assess the quality of companies and thesustainability of their growth. The Active Fundamental Equity
Growth and Core team may invest in companies where theteam has a positive view of company fundamentals despite
a lack of ESG data and/or low ESG scores. Additionally,
the team collaborates with the Asset Stewardship team toencourage investee companies to evaluate ESG factors andimprove disclosure.
TM

Active Fundamental: Equity — Value
The Active Fundamental Equity Value team seeks to identify
and incorporate ESG Factors into its investment decisionmaking processes. Analysts with the Active Fundamental
Equity Value team typically do not exclude companies on thebasis of a low or challenged ESG assessment.
Instead, the team seeks to understand the underlying ESG
factors and their potential impact on earnings power, balance
sheet strength, and the value of the business. The team’s

ENVIRONMENTAPPENDIX

87

STATE STREET CORPORATION | 2022 ESG REPORT

HOMEpriority is long-term returns, focusing on the price paid versus
the risk taken. Where, after analysis, the team has a positive
view of both the fundamentals and valuation of a company,
the team may still invest in the company despite a challenged
ESG assessment. The team may also coordinate with the Asset
Stewardship team to encourage investee companies to evaluate
ESG factors and improve disclosure.
Fixed Income
State Street Global Advisors manages both fixed income index
strategies, including those seeking to minimize tracking error
generally through a stratified sampling approach, as wellas active strategies, some of which utilize credit researchassessments as a part of an investment process.
In credit research processes, ESG factors may play a rolein helping to better assess an issuer’s creditworthiness. In
particular, corporate governance can play a role in fixed income
credit assessments. Governance structures drive risk policies
and can safeguard proper checks and balances. Depending
on a given security’s sector and/or the underlying investment
strategy, creditworthiness assessments may also consider
environmental and social factors.

securities issued by public corporations, but it can become
more challenging to assess the ESG Factors in relation to otherfixed income security types, such as sovereign bonds andsecuritized products.
Within our fixed income indexing capabilities, ESG factors canbe taken into account in several ways. Similar to equity, this
could be through the index itself (such as a third-party index)
or by deploying screens, tilts, or stratified sampling techniques
using R-Factor scores and/or other ESG data. Fixed income
mandates with the sole objective of replicating the return of a
non-ESG fixed income benchmark do not consider ESG factors
in investment selection, as the primary driver of investment
decisions is the risk profile of the relevant index.
Our active fixed income teams may consider ESG factors intheir credit research process by utilizing R-Factor scores and/or other ESG data to consider the impact of those ESG factors
on an issuer’s creditworthiness. In addition, State Street
Global Advisors' Counterparty Risk Management team may
consider ESG factors in the onboarding and oversight process
to the extent that such factors materially affect the trading
counterparty creditworthiness.

Integrating ESG factors into fixed-income investing can becomplex given the wide spectrum of available security types.
Entity-level ESG data now exists for a range of fixed income

Cash
The Cash Management investment process utilizes shortduration, high-quality securities to achieve the dual objectives

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL88of principal preservation and access to liquidity. The R-Factor
score has been incorporated into our Global Cash systems
and as a result, our investment professionals have access toissuers approved for use in the Cash Management strategies
along with, when available, their corresponding R-Factor score.
Similar to issuer ratings, the R-Factor score is an input to the
cash credit research process but is not the primary driverof the overall investment decision. In addition, State Street
Global Advisors' Counterparty Risk Management team may
consider ESG factors in the onboarding and oversight process
to the extent that such factors materially affect the trading
counterparty creditworthiness.
Currency
Currency hedging mandates are typically focused on removing
the currency exposure in an underlying portfolio and thus
do not take a view on the sustainability of the economies
underlying the currencies. However, within certain active andenhanced strategies where the mandates allow State Street
Global Advisors to take into account the longer term growthpotential of economies, we include a measure of the quality ofdifferent countries’ governance. In addition, an important part ofcurrency management is the management of counterparty risk;
our Counterparty Risk Management team may consider ESG
factors in the onboarding and oversight process to the extent
that such factors materially affect the trading counterparty
creditworthiness.
ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

has developed an ESG rating process aiming to identify
best practice ESG integration to effectively capture ESG
materiality within portfolios. The team is currently working
toward establishing ratings for all existing managers
across State Street Global Advisors.

Multi-Asset, Customized Solutions and Alternatives
Our Investment Solutions Group (ISG) is responsible for building
multi-asset and custom solutions to meet our clients’ specificinvestment objectives. ISG is composed of different teams that
perform the following complementary functions:•

Quantitative research, model developments andmonitoring, and strategy development•

Portfolio construction and management with a
specific focus on the design of investment strategy
and the management of multi-asset products, tacticalasset allocation, flexible asset allocation, exposure
management and execution of the outsourced chief
investment officer mandates••

Management of alternative investment asset classes witha focus on illiquid assets such as property investments,
private equity, and alternatives only mandates
Investment manager selection and oversight, which
evaluates internal strategies and investment teams ofState Street Global Advisors as well as external managers
whose investment solutions are chosen to fulfill specificinvestment objectives and requirements. The team

INTRODUCTION

CLIENTS•

Client engagement with specific and dedicated teams on
business strategy and development, operational support,
and reporting. ISG is responsible for the design andconstruction of capital market assumptions on a large
number of asset classes — equity, fixed income, liquid, andprivate alternatives — that are used to build strategic asset
allocation recommendations for clients. These rely on longterm assumptions that ISG makes about future risks andreturns on these asset classes. In Q3 2020, ISG decided toincorporate R-Factor within the equity asset class forecasts,
ascertaining the R-Factor score of the different equity
markets, and modifying the risk forecasts accordingly.

Given our observation that R-Factor scores for companies
in some equity markets in aggregate are persistently higher
than for others (due to structural differences in culture, law,
persistent sector composition, or environment), we focus on
how R-Factor scores for each equity market rise or fall overtime, rather than the absolute levels. Improvements in the

GOVERNANCE

SOCIAL89

R-Factor score may be rewarded by the market in the formof (1) higher returns, and (2) reduced risks. While ESG ratings
may have a nuanced effect on returns, their impact on risk is
expected to be more straightforward: Improved R-Factor scores
may reduce tail risks associated with ESG factors, thereby
delivering an overall lower level of risk (standard deviation).
The inverse is true for equity markets of countries in which
companies may have seen a deterioration in their R-Factor
scores. To account for these relationships, we have developed
a framework that associates countries where companies
demonstrate increasing R-Factor scores with lower risk
expectations, and vice versa.
As part of its broad mission, ISG engages directly with clientsto create portfolios that meet the relevant client’s specificobjectives including, where relevant, ESG objectives. For
portfolios where the client is pursuing an ESG objective,
the portfolio construction process will include a review andan assessment of the ESG characteristics of the different
underlying investment strategies and corresponding building
blocks that will be selected. ISG will then incorporate thesefindings into the overall portfolio construction process,balancing the client’s ESG goals with other considerations
including risk constraints and return considerations to

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

construct a portfolio solution with the goal of addressing theclient’s overall investment objectives.
FN-AC-410a.3
Description of proxy voting and investee engagement policies
and procedures
At State Street Global Advisors, we use a risk-based approach
to identifying issues that we believe have the most material
impact on the long-term value of our clients’ assets. We elevateoutcome-oriented stewardship priorities each year basedon factors such as market trends, financial materiality, andportfolio impact.
As near-permanent holders of capital, it is our responsibility
as fiduciaries to consider elements that may impact long-termvalue creation. Our Asset Stewardship program includes:
Corporate Engagement• Engaging with companies on key challenges andopportunities pertinent to their region and industry• Educating their boards and management on best practices

INTRODUCTION

CLIENTS90

Proxy Voting

PROXY VOTING• Leveraging the exercise of our voting rights, which
provides a meaningful shareholder tool that we believe
protects and enhances the long-term economic
value of the holdings in our client accountWe have put considerable care and attention to developing
proxy voting guidelines, which are approved and overseenby the ESG Committee. The general Global Proxy Voting andEngagement Principles and six market-specific guidelines
are available for public review on our website. These policies/
guidelines were designed to foster enhanced governancepractices at investee companies. They reflect our commitment
to global principles of good governance, while simultaneously
taking account of local market nuances and standards
where appropriate.

CORPORATE ENGAGEMENT
We engage with companies to drive improved standards anddisclosure around financially material risks and opportunities.
Our experience in Asset Stewardship has provided us with
important lessons on constructively engaging with companies.
Our focus begins with governance, as we believe that strong,
independent, and effective boards of directors can better
address the issues affecting long-term strategy. We use
sustained, multiyear engagements to drive improved disclosureand standards and seek the long-term preservation of thevalue of the companies in which we invest. We believe that our
portfolio companies are best suited to understand what issues
are most impactful for their business and, therefore, base ourpriorities for each portfolio company upon ongoing dialogue
with company management and boards.

BUSINESS ETHICS

GOVERNANCEENVIRONMENTSOCIALFN-AC-510a.1
Total amount of monetary losses as a result of legal proceedings
associated with fraud, insider trading, anti-trust, anti-competitive
behavior, market manipulation, malpractice, or other related
financial industry laws or regulations
In 2022, there were $0 total monetary losses as a result of legal
proceedings associated with fraud, insider trading, anti-trust,anti-competitive behavior, market manipulation, malpractice, orother related financial industry laws or regulations.

APPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

In the ordinary course of business, we and our subsidiaries are
involved in disputes, litigation, and governmental or regulatoryinquiries and investigations, both pending and threatened.
These matters, if resolved adversely against us or settled, may
result in monetary awards or payments, fines, and penalties
or require changes in our business practices. The resolution
or settlement of these matters is inherently difficult to predict.
Based on our assessment of these pending matters, we donot believe that the amount of any judgment, settlement, orother action arising from any pending matter is likely to have amaterial adverse effect on our consolidated financial condition.
However, an adverse outcome or development in certainof the matters could have a material adverse effect on ourconsolidated results of operations for the period in which suchmatter is resolved, or an accrual is determined to be required,on our consolidated financial condition, or on our reputation.
For further information regarding legal, governmental, andregulatory matters, or our approach to the management ofthese and related issues, please see page 162 of our 2022 10-K.

We expect all employees to promptly report any actual,attempted, or suspected violation of applicable laws, rules,
regulations, or policies. Failing to report a violation that one
knows about is itself a violation.

State Street does not tolerate retaliation against anyone whoreports a potential violation in good faith. Unlawful retaliation
includes negative job consequences against any employee orcontingent worker for acting upon a reasonable belief to:

For managers, this means that when one is aware of anissue relating to an employee or contingent worker, theymust address, escalate, and report the issue as necessary.
This includes reporting situations outside of their department
or involving employees or contingent workers outside of
their team.

•

There are many options for escalating concerns highlighted
in the State Street Standard of Conduct for Employees. For
example, our Speak Up line is active 24/7 if there are concerns
about known or suspected violations of laws or regulations,questionable business conduct, and breaches of the Standard of
Conduct — such as breaches pertaining to accounting practices,internal accounting controls, or auditing.

FN-AC-510a.2
Description of whistleblower policies and procedures

The Speak Up line is operated by an independent third party. An
employee can report anonymously (except where local law does
not permit), although identifying oneself allows State Street toact as quickly and appropriately as possible.

INTRODUCTION

GOVERNANCE

CLIENTSSOCIAL•

Report a potential violation of company policy orapplicable law
Participate in any internal or external investigation

To report an actual or possible violation of policy or law, anemployee can contact:
•
•
•
•
•
•

Their manager
Conduct Risk Management teamGlobal Human Resources
Legal
Global Security
The confidential Speak Up line

ENVIRONMENTAPPENDIX

91

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI INDEXINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

92

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGENERAL DISCLOSURESStatement Of Use
State Street Corporation has reported the information cited in this GRI content index for the period January 1 to December 31, 2022, with reference to the GRI Standards.
GRI 1 used GRI 1: Foundation 2021
Organizational Profile
2-1

Organizational details

State Street Corporation
State Street is a financial holding company organized under the laws of the Commonwealth of Massachusetts. Our common stock is listed on the New York Stock Exchange.
State Street Financial Center, One Lincoln Street Boston, MA 02111
We serve clients in more than 100 markets and have offices in 30 countries. For a list of office locations, see the About section of statestreet.com.

2-2

Entities included in
the organization’ssustainability reportingAll data presented in the report represents all wholly owned State Street Corporation operations, unless explicitly noted otherwise.

2-3

Reporting period,
frequency, and contact
point

ESG reporting period is January 1 to December 31, 2022, annual reporting.
Financial reporting period is January 1 to December 31, 2022.
May 17, 2023, publication
Richard Hamilton, SVP, ESG

2-4

Restatements of
information

No restatements.

2-5

External assurance

We obtain independent assurance on our annual ESG reports. For details of the scope and basis of the assurance carried out by ERM-CVS on our 2022 ESG Report, please refer to ERM
CVS’s Assurance Letter.

2-6

Activities, value chain,and other business
relationships

We have two lines of business: Investment Servicing and Investment Management. See Form 10-K for details starting on page 7, “Lines of Business.”

INTRODUCTION

Entities included in the report include our subsidiaries, including our principal banking subsidiary, State Street Bank and Trust Company. We deliver one consolidated sustainability reportfor State Street Corporation.

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

93

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

94

Organizational Profile
2-6
cont.

Activities, value chain,and other business
relationships

Supply chain categories that our Global Procurement Services (GPS) group focuses on for key products and services include:
Business Services: These include the global management of the Contingent Labor at State Street (CLASS) Program for staff augmentation and other labor services needs
across the company;
Financial Services: These deliver risk-mitigating business value to State Street within the sub-custody, insurance, and operation support areas;
Information Technology: These include business applications, hosted applications, telecommunications, hardware and storage cybersecurity, and software;
Market Data: This encompasses financial data such as quotes, end-of-day prices, valuations, news, corporate actions, descriptions, estimates, ratings, indices, factors, and information
related to financial instruments;
Office Support Services: These include program management for the print, office supplies, catering services, subscriptions, and facility services in alignment with the
Global Realty Services team;Outsourcing: This involves working with the business to source and negotiate onshore, near-shore, and offshore outsourcing arrangements;
Professional Services: These focus on providing highest value third-party service solutions to meet the business’s needs in the areas of consulting, marketing, legal and tax, and audit; andTravel Management: This supports travel agencies that manage our business travel and employees conducting business travel.
See Enhancing supplier diversity
See our Human Rights Statement and Modern Slavery Act Statement for more information on how we manage risks within our supply chain. These are located on State Street’s public
website at https://www.statestreet.com/us/en/asset-manager/about/our-impact/2021-esg-report/corporate-responsibility-policies.

2-6
cont.

Activities, value chain,and other business
relationships

INTRODUCTION

In 2022, State Street decided to no longer pursue the Brown Brothers Harriman & Co. (BBH) Investor Services acquisition.

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

Organizational Profile
2-7

Employees

Total employees: 42,226
Female employees: 18,901 (18,216 full-time and 685 part-time)
Male employees: 23,213 (23,115 full-time and 98 part-time).
Prefer not to disclose or unknown gender of employees: 112 (108 full-time and 4 part-time)
We do not disclose this breakdown further by gender and by region. See Diversity, Equity and Inclusion and EEO-1 Report regarding employee demographics.

2-8

Workers who are not
employees

The majority of workers at State Street are full- and part-time employees. State Street also engages with contractors and other providers depending on business needs.

2-9

Governance structure
and composition

State Street is governed by a Board of Directors that is responsible for acting in the best interest of State Street and its shareholders. State Street maintains a website at statestreet.com
that contains information about our corporate governance, including Board Committee members and Board Committee Charters, along with Corporate Governance Guidelines and State
Street’s Governance Standards.
State Street’s Board of Directors is responsible for oversight of material ESG issues. In 2021, the Nominating and Corporate Governance Committee of the Board and the Board itself
reviewed proposed changes to the charters of each of the committees of the Board to incorporate oversight for ESG activities, initiatives, and obligations for matters within eachcommittee’s specific remit. The Board, including through its committees, attends to specific functions, including overseeing the company’s ESG obligations, initiatives, and strategies. In
doing so, the Board delegates certain matters to the Examining and Audit, Human Resources, Nominating and Corporate Governance, Technology and Operations, and Risk committees.
State Street also has an Executive ESG Oversight Committee.
See Board Governance and ESG Management section and Proxy, which can be found at this site: https://investors.statestreet.com/filings-and-reports/annual-reports/default.aspx,
regarding the composition of the Board

2-10

Nomination andselection of the highest
governance body

INTRODUCTION

See Recruitment for greater Board diversity section regarding nomination and selection of Board members and “Director Qualifications and Selection Process” on State Street’s public
website for further details: https://investors.statestreet.com/corporate-governance/governance-guidelines/default.aspx

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

95

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

96

Organizational Profile
2-11

Chair of the highest
governance body

The Chairman of State Street’s Board of Directors is Ronald O’Hanley, who is also the Chief Executive Officer of State Street.
After the independent directors’ review and assessment, the Board of Directors continues to believe that Mr. O’Hanley’s role as Chairman, together with a strong independent Lead Director,
is currently the most effective leadership structure for State Street and is in the best interests of the Board, State Street, and its shareholders. Among the factors considered by the Boardin determining that the current leadership structure is the most appropriate are:• As our Chief Executive Officer, and with his experience in various leadership roles at State Street, Mr. O’Hanley has extensive knowledge of our business and strategy and is well
positioned to work with the independent Lead Director to focus our Board’s agenda on the key issues facing State Street.
• Oversight of State Street is the responsibility of our Board as a whole, which maintains a majority of independent directors (12 out of 13 directors), and this responsibility can beproperly discharged with a strong, active, and engaged independent Lead Director.
• The Chairman and independent Lead Director work together to play a strong and active role in the oversight of State Street’s business strategy and operational management.

2-12Role of the highest
Reflecting the growing awareness that consideration of ESG issues can impact value creation, in 2022 State Street undertook a review of its internal ESG governance processes togovernance bodystrengthen integration of such issues throughout the business. During 2023 we plan to develop and implement an enhanced ESG management model to complement and augment thein overseeing thestrengthening of ESG at the Board level.
management of impacts

2-13

Delegation of
responsibility for
managing impacts

See 2-9 regarding delegation of ESG activities and initiatives at the Board level and 2-12 regarding the 2023 plan for an enhanced ESG management model. The Board regularly receives
updates regarding ESG-related topics such as human capital management, climate risk, and corporate governance.

2-14

Role of the highest
governance body insustainability reporting

The Board reviews the material ESG topics resulting from the bi-annual materiality assessment. The material ESG topics inform our approach to ESG reporting. The Examining and Audit
Committee has been briefed on our approach to ESG reporting.

2-15

Conflicts of interest

The Board is guided by Corporate Governance Guidelines, which contain categorical standards for determining director independence under New York Stock Exchange listing standards.
In general, a director would not be independent under those standards if the director (and in certain circumstances, a member of the director’s immediate family) has, or in the past three
years had, specified relationships or affiliations with State Street, its external or internal auditors, or other companies that do business with State Street (including employment by State
Street, receipt of a specified level of direct compensation from State Street — other than director fees — and compensation committee interlocks). The categorical standards also provide
specified relationships that, by themselves, would not impair independence.
The Board has adopted a written policy and procedures for the review of any transaction, arrangement, or relationship in which State Street is a participant, the amount involved exceeds$120,000, and one of our executive officers, directors or 5% shareholders (or their immediate family members), who we refer to as “related persons,” has a direct or indirect materialinterest. A related person proposing to enter into such a transaction, arrangement, or relationship must report the proposed related-person transaction to State Street’s General Counsel.
The policy calls for the proposed related-person transaction to be reviewed and, if deemed appropriate, approved by the Nominating and Corporate Governance Committee.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

97

Organizational Profile
2-16

Communication ofcritical concerns

State Street’s public website has a Corporate Governance section that addresses reporting of concerns. Anyone who has a concern about State Street or its conduct, including concerns
about the Company’s accounting, internal accounting controls, or auditing matters, may communicate that concern directly to the Lead Director. Such communications may be confidential
or anonymous, and may be e-mailed, submitted in writing or through a web-based portal, or reported by phone to a special address or a toll free telephone number that is published on
the Company’s website. The Lead Director may, in his or her discretion, provide for handling of time-sensitive or emergency concerns, forward to the Examining and Audit Committee or toanother appropriate group or department any concern for their review, and will report to the non-management directors as a group on a quarterly basis regarding concerns received during
the preceding quarter. The Lead Director, the non-management directors, or the Examining and Audit Committee may direct special treatment, including the retention of outside advisors orcounsel, for any concern addressed to them. See here for more information: https://investors.statestreet.com/corporate-governance/governance-guidelines/default.aspx.

2-17Collective knowledge ofthe highest governancebodyState Street’s Board of Directors has been briefed on climate change and State Street’s primary climate-related risks.

2-18

Evaluation of theSee 2-9 and 2-12 regarding plans to enhance ESG management at the Board level.
performance of thehighest governance body

2-19

Remuneration policies

The Human Resources Committee is appointed by the Board of Directors to have direct responsibility for the oversight of:• the company’s human capital management;• all the compensation plans, policies, and programs of the company in which Senior Executives participate;• the alignment of the company’s incentive compensation arrangements with the company’s safety and soundness, consistent with applicable related regulatory rules and guidance, andincentive, retirement, welfare, and equity plans in which certain other employees of the company participate.

2-20

Process to determine
remuneration

See 2-19 regarding the Human Resources Committee of the Board, which determines remuneration.

2-21

Annual totalcompensation ratio

See “CEO Pay Ratio Disclosure” in Proxy, which is available here: https://investors.statestreet.com/filings-and-reports/annual-reports/default.aspx.

2-22

See A Statement from Ron O’Hanley and A Letter from Rick Lacaille.
Statement onsustainable development
strategy

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

98

Organizational Profile
2-23

Policy commitments

State Street’s public website includes documents on standards of conduct and policies, including:• Standard of Conduct for Employees• Standard of Conduct for Directors• Code of Ethics for Senior Financial Advisors• https://investors.statestreet.com/corporate-governance/standards-of-conduct/default.aspx
The following policies cover diversity and equal opportunity:• Global Diversity, Equity, and Inclusion Policy• Global Equal Employment Opportunity Policy• Global Non-Discrimination Policy• Global Remuneration Policy• US Pay Transparency Policy• US Affirmative Action Policy• US Americans with Disabilities Policy
State Street’s Corporate Responsibility policies, including our Human Rights Statement, are available on our public website: https://www.statestreet.com/us/en/asset-manager/about/ourimpact/2021-esg-report/corporate-responsibility-policies.

2-24

Embedding policy
commitments

See links in 2-23. Individual policies detail how State Street embeds each of its policy commitments throughout its activities.

2-25

Processes to remediate
negative impacts

State Street has two primary lines of business: Investment Servicing and Asset Management. We believe GRI Disclosure 2-25 is not applicable for our primary business.

2-26

Mechanisms for seeking See Standard of Conduct references in 2-23.
advice and raisingconcerns

2-27

Compliance with laws
and regulations

INTRODUCTION

In 2022, we had 0 instances of noncompliance.

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

Organizational Profile
2-28

Membershipassociations

State Street Corporation ESG Affiliations
State Street Corporation participates in a range of industry partnerships and affiliations,
often for collaborative purposes and to share research and ideas. We highlight a selectionof these affiliations below. We maintain our right to hold independent positions and views
and we do not necessarily endorse the views of the affiliations.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Boston College Center for Corporate Citizenship
Boston Women’s Workforce Council
Cambridge Institute for Sustainability Leadership (CISL)
CDP
Ceres Investor Network
Council for Inclusive Capitalism
CSR Europe
FCLTGlobal
Investment Leaders Group (part of CISL)
Investor Leadership Network
ISSB Investor Advisory Group
Sustainable Markets Initiative
The Task Force on Climate-related Financial Disclosures
United Nations Environment Programme Finance Initiative
World Economic Forum Transition Finance Steering CommitteeState Street Global Advisors Collaboration With Other Market Participants
It is important to note at the outset that, in order to properly exercise the fiduciary duties
that we owe to our asset management clients, State Street Global Advisors must always
act independently when making decisions regarding how to invest our clients’ assets andhow to vote with respect to the equity securities in which we invest those assets. While wealways make our own independent investment and voting decisions when managing ourclients’ assets, we have joined various industry groups, discussed in more detail below, sothat we can participate in conversations, discussions, and information sharing with respect
to issues that impact global and local markets and that impact the long-term value of ourclients’ assets. We believe that this approach, remaining independent but joining industry
groups to participate in industry-wide efforts to drive long-term shareholder value creation,is consistent with the fiduciary duty that we owe to our clients while also allowing us toremain in compliance with the variety of laws and regulations applicable to State Street
Global Advisors across the globe.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALThe reasons that we participate in various multi-national organizations and industry
initiatives are to expand our knowledge of certain thematic issues and share our views withother industry members and to seek the best available information regarding sustainability
and systemic risks that may help us serve our clients. The following is a non-exhaustive
list of the industry organizations and initiatives that we have joined, which are designed toaddress and explore topics related to material sustainability risks and the development of
more sustainable capital markets.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

30% Club
CDP
Ceres Investor Network
Climate Action 100+
Climate Bonds Initiative
Council of Institutional Investors
International Financial Reporting Standards Foundation Sustainability Alliance
Institutional Investors Group on Climate Change
Investor Leadership Network
Investor Stewardship GroupInternational Sustainability Standards Board Investor Advisory Group
Japan Stewardship CodeNet Zero Asset Managers initiative
One Planet Asset Managers initiative
Responsible Investment Association Canada
Sustainable Trading
Task Force on Climate-related Financial Disclosures
Transition Pathway Initiative
United Nations Principles for Responsible Investment

ENVIRONMENTAPPENDIX

99

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

100

Organizational Profile
2-29

Approach to stakeholder Stakeholder Engagement
engagement
Employee Experience
2022 Proxy Statement, page 2 “Shareholder Engagement and Communications”
Engagement with stakeholders to determine material topics occurs every two years, undertaken as part of the materiality assessment.

2-30

Collective bargaining
agreements

Given the global footprint of State Street, we operate in countries where local laws exist regarding the freedom of association and collective employee action. State Street employees in fiveof our European offices participate in collective bargaining agreements, totaling 3% percent of State Street employees globally.

Disclosure on Material Topics
3-1

Process to determinematerial topics

Materiality Assessment

3-2

List of material topics

Board Governance and ESG Management
Climate Change
Data Privacy
Employee Experience
ESG Integration
Diversity, Equity, and Inclusion
Operational and Cyber Resilience
Risk, Ethics, and Compliance
There were no changes to the list of material topics compared to the previous reporting period.

GRI 3: MATERIAL TOPICS 2021
The State Street material topic “Risk, Ethics, and Compliance” includes the GRI topics “205 Anti-Corruption,” “206 Anti-Competitive Behavior,” and “417 Marketing and Labeling.”
3-3Management of material Risk, Ethics, and Compliance
topicsSee 10-K regarding governance of Risk, Ethics, and Compliance, starting on page 81 “Risk Management.”

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

101

GRI Topic-Specific Disclosures: 205 Anti-Corruption
205-1 Opportunities assessed
for risks related tocorruption

Our business operations and every functional area are included in our annual risk assessment, which includes bribery and corruption risk as a standard item in our risk taxonomy.

205-2 Communication andtraining about anticorruption policies andprocedures

Our anti-corruption policies and procedures have been communicated to our Board members and employees.
RegionNumber of People

Completion rate

North America

11,72799.69%

EMEA

10,94799.39%

APAC

13,46099.75%

17

100.00%Latin America

Members of the Board of Directors receive information on corruption risks through their review and approval of the Standard of Conduct, which includes key elements of the firm‘s antibribery and corruption policy. The Examining and Audit Committee of the Board also receives a formal annual report and periodic updates on the Compliance program, which includes ouranti-bribery and corruption program.
While we do not share our anti-bribery and corruption policies and procedures with clients and potential clients, we describe such policies and procedures upon request as part of clientdue diligence requests and RFPs.
We include a standard anti-corruption provision in all business partner contracts. All internal governance committee members receive annual training by virtue of their status asemployees. External Board members do not receive the training. As a regulated business, we share our anti-corruption policies and procedures with various regulators upon request.
205-3 Confirmed incidents ofcorruption and actions
taken

INTRODUCTION

In 2022, there were 0 confirmed incidents of corruption that resulted in litigation against State Street.

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 206 Anti-Competitive Behavior
206-1 Legal actions for antiFor further information regarding legal, governmental, and regulatory matters, or our approach to the management of these and related issues, please see page 162 of our 2022 10-K.
competitive behavior,anti-trust, and monopoly
practices

GRI Topic-Specific Disclosures: 417 Marketing and Labeling417-3 Incidents ofnoncomplianceconcerning marketing
communications

In 2022, we had 0 instances of noncompliance with regulations or our policies regarding marketing communications.

MATERIAL TOPIC: OPERATIONAL AND CYBER RESILIENCEThe State Street material topic “Operational and Cyber Resilience” covers our efforts to ensure resiliency and continuity of our business operations and IT systems.
Disclosure on Management Approach
3-3

Operational andCyber Resilience

MATERIAL TOPIC: DATA PRIVACYThe State Street material topic “Data Privacy” includes the GRI topic “418 Customer Privacy.” It covers our efforts to implement controls and ensure data protection and privacy of our data.
Disclosure on Management Approach
3-3

Data Privacy

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

102

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 418 Customer Privacy
418-1 Substantiatedcomplaints concerning
breaches of customer
privacy and losses ofcustomer data

State Street received 0 substantiated complaints concerning breaches of customer privacy and losses of customer data in 2022.

MATERIAL TOPIC: EMPLOYEE EXPERIENCEThe State Street material topic “Employee Experience” includes the GRI topics “401 Employment” and “404 Training and Education.”
Disclosure on Management Approach
3-3

Employee Experience

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

103

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 401 Employment
401-1 New employee hires and Age Group
employee turnover
Under 30

Percent Hired

Percent Turnover

45%

39%

30-50

50%

56%

50+

4%

6%

Gender

Percent Hired

Percent TurnoverFemale

41%

41%

Male

58%

59%

Percent Hired

Percent Turnover

North America

19%

23%

APAC

57%

49%

EMEA

24%

28%

Latin America

0.1%

0.1%

Region401-3 Parental leave

INTRODUCTION

All State Street employees are eligible for parental leave specific to their country.
State Street does not track data on employees taking parental leave, returning to work nor associated retention rates. As such, we are unable to report on these indicators.

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

104

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 404 Training and Education
404-1 Average hours of
training per year per
employee

GenderAverage Hours Per

Female15.67

Non-manager

16.22

Male

15.3

Manager

12.65

Unknown/prefer not todisclose

10.32

Management Level

INTRODUCTIONManager/Non-Manager

Average Hours Per

Non-required Training

Associate 1

34.02

Associate 2

20.76% of employees whocompleted non-required
training

Senior associate

16.24

Officer

14.29

Assistant vice president

11.53

Vice president

10.78

Managing director

10.95

Senior vice president/senior
managing director

11.33

Executive vice president

9.77

Contractors/interns

23.63

CLIENTS

GOVERNANCE

Average Hours Per

64%

Total employee hours spent
on non-required training

260,438

Most commonly taken nonrequired course

Global Employee Onboarding- Welcome to State Street

SOCIALENVIRONMENTAPPENDIX

105

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

106

GRI Topic-Specific Disclosures: 404 Training and Education—continued
404-2 Programs for upgrading
employee skills andtransition assistanceprograms

Employee Experience: Developing TalentInternally, our Leadership Development Program (LDP) is a global, enterprise wide development and rotational program that offers unique professional development opportunities to highpotential, mid-career employees. Our Professional Development Program (PDP) selects high-performing recent college graduates, including former State Street interns, to participate in a
tailored program that immerses them in different aspects of the business. These programs provide targeted rotational assignments and professional development. Participants gain handson experience across State Street’s businesses.

404-3 Percentage of
employees receiving
regular performancedevelopment reviews

All full-time employees (100%) participate in our career performance management process and receive regular performance reviews.

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

107

Material Topic: Diversity, Equity and Inclusion
The State Street material topic “Diversity, Equity, and Inclusion” (DEI) includes the GRI topic “405 Diversity and Equal Opportunity.”
Disclosure on Management Approach
GRI Topic-Specific Disclosures: 405 Diversity and Equal Opportunity
405-1 Diversity of governancebodies and employees

Gender Diversity of State Street’s Board and Employees
Technical:

405-2 Ratio of basic salaryand remuneration of
women to men

INTRODUCTION

Other:

Age

Male

FemalePrefer Not to Disclose

Age

Male

FemalePrefer Not to Disclose

Under 30

12%

19%

10%

Under 30

24%

29%

24%

30-50

67%

63%

67%

30-50

64%

60%

63%

Over 50

22%

17%

24%

Over 50

12%

11%

12%

Administrative:

Employee Breakdown by Age:

Age

Age

Male

FemalePrefer Not to Disclose

Under 30

21%

27%

21%

Under 30

6%

3%

—%

30-50

63%

50%

100%

30-50

65%

61%

64%

Over 50

31%

47%

—%

Over 50

14%

12%

14%

State Street provides pay equity disclosure on its public website: https://www.statestreet.com/us/en/asset-manager/about/our-people/global-inclusion-diversity-equity/pay-equity-disclosure

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORT

HOME

108

Material Topic: Climate Change
The State Street material topic “Climate Change” includes the GRI topics “302 Energy,” and “305 Emissions.”
Disclosure on Management Approach
3-3

Environmental Footprint
Task Force on Climate-related Financial Disclosures Report
As a financial services provider with mainly office-based operations, we are not subject to GHG emissions policies or regulations beyond what is typically required for other large
companies in our markets. However, on a voluntary basis, we are committed to progress with respect to emissions.
We are subject to Article 8 of the EU Energy Efficiency Directive, and the U.K. Carbon Reduction Commitment legislation for our operations in the U.K. and Europe. State Street follows GHG
Protocol best practices and dual-report GHG emissions using both the location and market-based methods. For market-based figures, RECs are included. Purchased RECs are Green-e (NA)or EECS-GO (EMEA) certified. Per GHG Protocol guidance, carbon offsets are not included in market-based method calculations.
In 2022, we were able to reduce our carbon emissions by 25% from a 2019 baseline.

GRI Topic-Specific Disclosures: 302 Energy
302-1 Energy consumption
within the organization

Consumption by Fuel TypeUNIT

Total Scope 1 Fuel UsageINTRODUCTION

Natural Gas

GJ

85,610

Diesel

GJ

7,069

Total Direct Energy

GJ

92,679CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 302 Energy—continued
302-2 Energy consumption
outside of theorganization

Consumption by Fuel TypeUNIT

Total Scope 2 Indirect Energy Usage
Electricity

GJ

674,231

Heating

GJ

20,273Cooling

GJ

7,939

Total Indirect Energy

GJ702,443

Consumption by Fuel TypeUNIT

Total Scope 3 Energy Usage

302-3 Energy intensity

Business Travel (Non-Renewable)

GJ

84,169Total Indirect Energy

GJ786,539

Energy Intensity Ratio

UNIT

Numerator

kWh

Denominator

Occupants

Energy Intensity
302-4 Reduction of energy
consumption

Total Energy Saved

40,306
5,480

UNIT

Electricity

INTRODUCTION

220,867,291

11,234

Heating

GJ

15,108

Total Energy Saved

GJ

26,342

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

109

STATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 305 Emissions
305-1 Direct GHG emissions(Scope 1)CO2e Emissions (Metric Tons)
CO2 Direct

4,956

CH4 Direct

13

N2O Direct

3.17

HFCs Direct

1,859

Total Direct (Scope 1)

6,831

CO2e Emissions (Metric Tons)
305-2 Energy-based indirect
GHG emissions (Scope 2)
Biogenic CO2
Total Indirect (Scope 2)
305-3 Other indirect GHG
emissions (Scope 3)

57,135CO2e Emissions (Metric Tons)
Total Indirect (Scope 3)

305-4 GHG emissions intensity

1

31,759GHG Intensity
GHG Emissions Intensity Ratio
List of Included Gases

305-5 Reduction of GHG
emissions

1.59
Carbon Dioxide (CO₂), Methane(CH₄), Nitrous Oxide (N₂0)

GHG Reduction
1,754

Total GHG Reductions in Metric tons
CO2 Equivalent

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

110

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

111

Material Topic: Environmental, Social, and Governance (ESG) Integration
The State Street material topic “ESG Integration” refers to how ESG material topics are managed and addressed in the organization.
Disclosure on Management Approach
3-3

Materiality Assessment
Board Governance and ESG Management
Environmental Footprint
Data Privacy
Employee Experience
Diversity, Equity and Inclusion
Operational and Cyber Resilience
Risk, Ethics and Compliance

Material Topic: Board Governance and ESG Management
The State Street material topic “Board Governance and ESG Management” refers to our efforts related to the diversity of the Board of Directors, their oversight and management of ESG-related issues,and their overall effectiveness in creating long-term value for our stakeholders. This topic includes the GRI Indicator “405-1 Diversity of Governance Bodies and Employees.”
Disclosure on Management Approach
3-3

Board Governance and
ESG Management

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEGRI Topic-Specific Disclosures: 405 Diversity, Equity and Inclusion
Disclosure on Management Approach405-1 Diversity of governancebodies and employees

GenderMale

FemalePrefer Not
to Disclose/
Unknown

Total

#

9

4

0

13

%

70%

30%

—%

Race and Ethnicity

INTRODUCTION#%

African American/Black

1

7.7%

Native American

0

—%

Asian

1

7.7%

Caucasian/White

10

77%

Hispanic or Latinx

1

7.7%

Hawaiian/Pacific Islander

0—%

Other/Not Disclosed

0

—%

Total

13

—%

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX112

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

U.N. SUSTAINABLE
DEVELOPMENT GOALSINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

113

STATE STREET CORPORATION | 2022 ESG REPORTHOMEState Street became a signatory to the United Nations Global
Compact in December 2014. We have identified six of theUnited Nations Sustainable Development Goals (SDGs) where
we contribute. In 2022, we continued to progress our corporate
ESG agenda through the release of our Sustainability Bond
Framework and issuance of our first Sustainability Bond, theproceeds of which will be exclusively allocated to projects
with positive environmental impacts and/or positive social
outcomes aligned to one or more of the U.N. Sustainable
Development Goals.
• SDG 4: Quality Education• SDG 5: Gender Equality• SDG 7: Affordable and Clean Energy• SDG 8: Decent Work and Economic Growth• SDG 10: Reduced Inequalities• SDG 13: Climate Action

INTRODUCTION

SDG 4: QUALITY EDUCATION
SDG 8: DECENT WORK AND ECONOMIC GROWTH
State Street Foundation’s mission is to promote economic
opportunity in the communities where we have a businesspresence. We invest in high-performing nonprofit organizations
that support education, combat racism and inequality, andpromote employability and employment opportunities for
disadvantaged individuals, helping them gain the skills andeducational qualifications needed to secure sustainable
employment in today’s knowledge-based, global economy.
State Street Foundation partners with charities that operate incommunities where we have a presence and are committed toreducing gaps in educational achievement and employability
based on race, ethnicity, and socio-economic status, thereby
promoting economic opportunity and racial equity anddemonstrating leadership, innovation, and a genuine connection
for our communities. We do this by providing grants to support
the core business functions of organizations whose missions,activities, and strategies are aligned with these goals.

SDG 5: GENDER EQUALITY
Gender Equality in the Workplace
As part of our commitment to equal pay for work of equal value,
we regularly review our pay practices to assess how womenare paid compared to men. Our strategy to promote pay equity
is available on the Pay Equity Disclosure website.
State Street’s Professional Women’s Network offers aSponsorship Program, which aims to build and support apipeline of leaders for the organization and help bridge themale/female achievement gap.
In 2022 — for the 16th year — we partnered with the
Massachusetts Conference for Women, an organization that
promotes, communicates, and amplifies the influence of womenin the workplace and beyond.
Gender Diversity on Boards
Recruitment for greater Board diversity

State Street Foundation

CLIENTS

GOVERNANCE

SOCIAL114

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

SDG 7: AFFORDABLE AND CLEAN ENERGY
SDG 13: CLIMATE ACTION
Environmental footprint
Reducing our environmental footprint
Maintaining carbon neutrality
Sustainable building design
Municipal finance
Sustainability BondSDG 10: REDUCED INEQUALITIESDiversity, Equity, and Inclusion
10 Actions to Address Racism and Inequality
Corporate Citizenship

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

115

STATE STREET CORPORATION | 2022 ESG REPORTHOMEEU DIRECTIVE ON
NON-FINANCIAL REPORTING
CONTENT LISTINGSINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

116

STATE STREET CORPORATION | 2022 ESG REPORTHOMEThe EU Directive on Non-Financial Reporting outlines certain
requirements for corporate disclosures that companies of acertain size must comply with. State Street is subject tothese requirements.
Below is an index of information found within our 2022 Report,aligned with the requirements of the EU Directive.
Environmental
matters• Environmental Footprint• Tax Advantaged Investments• SASB Report (Incorporation of Environmental, Social, and Governance Factors in Investment Management and Advisory)• TCFD Report• GRI (Material Topic: Climate Change)

Social and employee
matters• Diversity, Equity and Inclusion• Employee Experience• Corporate Citizenship• SASB Report (Employee Diversity and Inclusion)• GRI (Material Topic: Diversity, Equity and Inclusion)• GRI (Material Topic: Employee Experience)

Respect for humanrights• Environmental Footprint• Human Rights in Our Supply Chain• Diversity, Equity and Inclusion• SASB Report (Employee Diversity and Inclusion)• GRI (Material Topic: Diversity, Equity and Inclusion)

Anti-corruption andbribery matters• Risk, Ethics and Compliance• GRI (Material Topic: Risk, Ethics and Compliance)

INTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

117

STATE STREET CORPORATION | 2022 ESG REPORTHOME

EEO-1 REPORTINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

118

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

Hispanic

White

Black orAfricanAmerican

M

F

M

F

M

F

M

F

M

F

M

Exec./Sr. level Officials
and Managers

8

2

159

83

5

3

0

0

18

8

First/Mid-Level Officials
and Managers

76

66

2,045 1,062

77

63

4

0

568

Professionals

168

122

2,250 1,528

170

189

6

5

Sales Workers

11

5

149

49

4

1

0

Administrative Support

31

45

169

217

43

73

2021 Total

294

240

4,772 2,939

299

329

INTRODUCTION

CLIENTS

GOVERNANCE

NativeHawaiian orPacific Islander

TwoorMore Races

Total

F

M

F

M

F

0

1

0

3

190

100

290

291

5

1

24

11

2,799 1,494

4,293

1,057

805

4

3

49

29

3,704 2,681

6,385

0

11

7

0

0

3

0

178

62

240

2

1

67

89

2

3

5

5

319

433

752

12

6

1,721 1,200

11

8

81

48

7,190 4,770

11,960SOCIAL

Asian

AmericanIndian or
Alaskan Native

119

ENVIRONMENTAPPENDIX

Grand
Total

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

U.N. GLOBAL COMPACTINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

120

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

121

ALIGNMENT WITH THE UN GLOBALCOMPAC T PRINCIPLESUNGC PRINCIPLEREFERENCE

COMMENTARY

Human Rights
Human Rights in Our
Principle 1:
Supply Chain
Businesses should
support and respect
the protection ofinternationally proclaimed
human rights

We support fundamental human rights principles as outlined in the United Nations Universal Declaration of Human Rights. We are signatories to the UN Global
Compact and support the principles related to human rights abuses and forced labor. As a company that procures goods and services from across the globe, we are
diligent in our efforts to ensure that human rights risks are being monitored in our supply chain.

Principle 2:
Make sure that they are
not complicit in humanrights abuses

Our procurement sourcing program helps ensure that our global procurement due diligence processes are in accordance with the United Kingdom Modern Slavery Act
and any other laws, rules or regulations prohibiting human trafficking and/or slavery. This regulation requires that potential suppliers attest to whether they have apolicy in place prohibiting child and/or forced labor, whether their policy extends to their own suppliers and subcontractors and to provide tangible proof of the policy.

Human Rights in Our
Supply Chain

Labor
GRI 2-30
Principle 3:
Businesses should upholdthe freedom of associationand the effective
recognition of the right tocollective bargaining

INTRODUCTION

CLIENTS

State Street is committed to adherence to local laws regarding the freedom of association and collective employee action. State Street employees in five of our
European offices participate in collective bargaining agreements, totaling 3% of State Street employees globally.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOME

UNGC PRINCIPLEREFERENCE

COMMENTARY

Principle 4:
The elimination of all
forms of forced andcompulsory labor

Human Rights in Our
Supply Chain

In our business operations, we do not allow forced or compulsory labor. Additionally, all of our potential suppliers must provide information about social compliance
audits of their own suppliers and subcontractors, with reference to risks for incidents of forced and compulsory labor.

Principle 5:
The effective abolition ofchild labor

Human Rights in Our
Supply Chain

State Street remains committed to rejecting child labor. This commitment requires our potential suppliers to provide information about social compliance audits fortheir suppliers and subcontractors including reference to risks for incidents of child labor.

Principle 6:
The elimination of
discrimination in respectof employment andoccupation

N/A

State Street's policies make qualifications, skill and experience the basis for recruitment and advancement include:
Global Diversity, Equity and Inclusion Policy
Global Equal Employment Opportunity Policy
Global Non-Discrimination Policy
Global Remuneration Policy
US Pay Transparency Policy
US Affirmative Action Policy
US Americans with Disabilities Policy
Employees receive unconscious bias training.

Environment
Environmental
Principle 7:
Footprint
Businesses should
support a precautionary
approach to environmental
challenges

INTRODUCTION

CLIENTS

Through our precautionary approach to environmental sustainability and greenhouse gas (GHG) emissions reduction, we continuously monitor and address thephysical risks associated with climate change. GHG emission management and mitigation is a key aspect of environmental sustainability at State Street.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

122

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

123

UNGC PRINCIPLEREFERENCE

COMMENTARY

Principle 8:
Undertake initiatives
to promote greater
environmental
responsibility

Environmental
Footprint

We track our performance in energy use, greenhouse gas emissions, water use, waste generation, and recycling rate.
We maintained carbon neutrality for Scope 1, Scope 2, and corporate travel GHG emissions through carbon offsets and continue investing in renewable energy inprojects across the world.

Principle 9:
Encourage thedevelopment anddiffusion ofenvironmentallyfriendly technologies

Tax-Advantaged
Investments

We provide R-Factor , the first ESG scoring system that offers companies a roadmap on how to manage and disclose their ESG practices, to help our clients andportfolio companies better understand their ESG characteristics and see how well they meet the marketplace’s expectations.
Our Tax-Advantaged Investments team invests in wind and solar assets within the United States promoting and furthering the market for those technologies.
State Street utilizes many environmentally friendly technologies looking to reduce our carbon, water, and waste impacts. These include renewable energy technologies
and high-efficiency HVAC equipment and lighting.

Environmental
Footprint

TM

Anti-corruption
Principle 10:
Businesses should work
against corruption in
all its forms, including
extortion and bribery

INTRODUCTION

GRI 2-23

CLIENTS

State Street's documents on Standards of Conduct are available here on State Street's public website.
All State Street employees are expected to comply with anti-bribery and anti-corruption laws in countries where our company conducts business, including the US
Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act.
Anti-bribery and corruption policy prohibits all forms of bribery and corruption — including facilitation payments, pay-to-play, abuse of authority, or misappropriationof company assets.

GOVERNANCE

SOCIALENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMEASSURANCE LETTERINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

124

STATE STREET CORPORATION | 2022 ESG REPORT

HOME

Independent Limited Assurance Statement to State Street Bank and Trust
Company
ERM Certification & Verification Services, Inc. (“ERM CVS”) was engaged by State Street Bank andTrust Company (“State Street”) to provide limited assurance in relation to State Street’s 2022
Environmental, Social and Governance (‘ESG’) Report (the “Report”) as set out below.

Respective
responsibilities

State Street is responsible for preparing the Report and for the collection andpresentation of the information within it, and for the designing, implementing andmaintaining of internal controls relevant to the preparation and presentation of theReport.
ERM CVS’ responsibility is to provide conclusions to State Street on the agreed scope
based on our engagement terms with State Street, the assurance activities performed
and exercising our professional judgement. We accept no responsibility, and deny any
liability, to any party other than State Street for the conclusions we have reached.

Engagement summary
Our engagement was designed to provide assurance on whether:••

Scope of our
assuranceengagement•

Reporting period

Reportingcriteria

Assurance
standard andlevel ofassurance

INTRODUCTION

the Report presents a complete and balanced presentation of State Street’s ESG
activities and performance in the 2022 reporting year in accordance with the GRI
Standards;
the 2022 data for the following indicators are fairly presented in the Report, in allmaterial respects, in accordance with the reporting criteria:• Total Scope 1 Greenhouse gas (“GHG”) emissions (metric tonnes
CO2e)• Total Scope 2 GHG emissions (location-based and market-based)(metric tonnes CO2e)• Total Scope 3 GHG emissions (metric tonnes CO2e) from the following
four categories:• Category 3 - Fuel-and-energy-related activities (not included in Scope
1 or Scope 2)• Category 5 – Waste generated in operations• Category 6 – Business travel• Category 7 – Employee commuting• Total water usage – absolute (million cubic feet) and per employee• Total waste – absolute (short tons) and recycling rate percentage.
the Report includes the relevant disclosures required for material issue categories,
as defined in the SASB Materiality Map, for the Asset Management & Custody
Activities industry, disclosures aligned with the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD), and disclosures required by the
EU Directive on Non-Financial Reporting.

2022 (1st January 2022 to 31st December 2022)•

GRI Sustainability Reporting Standards (“GRI Standards”)•

WBCSD/WRI GHG Protocol A Corporate Accounting and Reporting Standard andCorporate Value Chain (Scope 3) Standard•

Our conclusions
Based on our activities, as described below, and noting the exclusions explained in the ‘Limitations’ paragraphbelow, nothing has come to our attention to indicate that the following statements are not correct:•••

the Report presents a complete and balanced presentation of State Street’s ESG activities andperformance in the 2022 reporting year in accordance with the GRI Standards;
the 2022 data for the following indicators are fairly presented in the Report, in all material respects, inaccordance with the reporting criteria:o Total Scope 1 Greenhouse gas (“GHG”) emissions (metric tonnes CO 2e)o Total Scope 2 GHG emissions (location-based and market-based) (metric tonnes CO2e)o Total Scope 3 GHG emissions (metric tonnes CO2e) from the following four categories:▪ Category 3 - Fuel-and-energy-related activities (not included in Scope
1 or Scope 2)▪ Category 5 – Waste generated in operations▪ Category 6 – Business travel▪ Category 7 – Employee commuting
o Total water usage – absolute (million cubic feet) and per employeeo Total waste – absolute (short tons) and recycling rate percentageo Total Waste – absolute (short tons) and recycling rate percentage.
the Report includes the relevant disclosures required for material issue categories, as defined in the
SASB Materiality Map, for the Asset Management & Custody Activities industry, disclosures alignedwith the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), anddisclosures required by the EU Directive on Non-Financial Reporting.

Our assurance activities
Considering the level of assurance and our assessment of the risk of material misstatement of the Report andthe 2022 data for the selected indicators a multi-disciplinary team of ESG and assurance specialists performeda range of procedures that included, but was not restricted to, the following:•

Assessing the appropriateness of the reporting criteria for the Report.

•

SASB Asset Management & Custody Activities Sustainability Accounting Standard

A review of external media reporting relating to State Street to identify ESG issues in the reporting
period that may be relevant to the assurance scope.

••

Recommendations of the Task Force on Climate-related Financial Disclosures(TCFD)•EU Directive on Non-Financial Reporting••

State Street’s internal reporting criteria and definitions.

Virtual interviews with relevant staff to understand and evaluate the data management systems andprocesses (including IT systems and internal review processes) used for collecting and reporting the2022 performance data and related disclosures for the topics covered in the Report.
A review of samples of qualitative and quantitative evidence supporting the information disclosed in theReport.
For the 2022 GHG emissions, water usage and waste data, conducting virtual interviews with theexternal company responsible for collecting and consolidating utility data across State Street’s
operations and testing samples of the data to underlying evidence, as well as conducting reviews of thecompleteness and accuracy of the data, including the unit and emission conversion factors used in thecalculation of the GHG emissions, the reasonableness of estimations and extrapolations and theaccuracy of the data consolidation.
A check on whether the Report has been prepared in accordance with the requirements of the GRI
Standards, and whether the Report includes relevant disclosures required for material issue categories,
as defined in the SASB Materiality Map, for the Asset Management & Custody Activities industry,
disclosures aligned with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), and disclosures required by the EU Directive on Non-Financial Reporting.
A check of the consistency of financial performance data disclosed in the Report with State Street’s
2022 Form 10-K, where relevant.

We performed a limited assurance engagement, in accordance with the International
Standard on Assurance Engagements ISAE 3000 (Revised) ‘Assurance Engagements
other than Audits or Reviews of Historical Financial Information issued by theInternational Auditing and Standards
The procedures performed in a limited assurance engagement vary in nature and timing
from, and are less in extent than for a reasonable assurance engagement andconsequently, the level of assurance obtained in a limited assurance engagement issubstantially lower than the assurance that would have been obtained had a reasonableassurance engagement been performed.

CLIENTS•••

GOVERNANCE

SOCIAL125

The limitations of our engagement
The reliability of the assured information is subject to inherent uncertainties, given the available methods fordetermining, calculating or estimating the underlying information. It is important to understand our assurance
conclusions in this context.
For the financial performance data disclosed in the Report, we have restricted our work to checking theconsistency of those data with the audited State Street Annual Report on Form 10-K for the year ending 31st
December 2022.
Our independence, integrity and quality control
ERM CVS is an independent certification and verification body accredited by UKAS to ISO 17021:2015.
Accordingly we maintain a comprehensive system of quality control, including documented policies andprocedures regarding compliance with ethical requirements, professional standards, and applicable legal andregulatory requirements. Our quality management system is at least as demanding as the relevant sections of
ISQM-1 and ISQM-2 (2022).
ERM CVS applies a Code of Conduct and related policies to ensure that its employees maintain integrity,
objectivity, professional competence and high ethical standards in their work. Our processes are designed andimplemented to ensure that the work we undertake is objective, impartial and free from bias and conflict ofinterest. Our certified management system covers independence and ethical requirements that are at least as
demanding as the relevant sections of Parts A & B of the IESBA Code relating to assurance engagements.
The team that has undertaken this assurance engagement has extensive experience in conducting assurance
on environmental, social, ethical and health and safety information, systems and processes, and provides noconsultancy related services to State Street in any respect.

Beth Wyke
PartnerMalvern, PA
April 21, 2023
ERM Certification & Verification Services Incorporated
www.ermcvs.com | post@ermcvs.com

ENVIRONMENTAPPENDIXSTATE STREET CORPORATION | 2022 ESG REPORTHOMESTATE STREET WORLDWIDEINTRODUCTION

CLIENTS

GOVERNANCE

SOCIALENVIRONMENTAPPENDIX

126

STATE STREET CORPORATION | 2022 ESG REPORTHOMEAUSTRALIA
Melbourne
SydneyAUSTRIA
ViennaBELGIUM
Brussels
BRAZILSao Paulo
BRUNEI DARUSSALAM
Bandar Seri Begawan
CANADA
Montreal
TorontoVancouver
CAYMAN ISLANDSGrand Cayman

CHILE
Santiago
FRANCEParis
GERMANY
Frankfurt
Leipzig
Munich
INDIA
Bangalore
Chennai
Coimbatore
Hyderabad
MumbaiPune
Vijayawada
IRELAND
DublinKilkenny
Naas

CHANNEL ISLANDS
GuernseySaint Peter Port
JerseySaint Helier

ITALY
Milan
Turin

INTRODUCTION

CLIENTSJAPAN
FukuokaTokyo
LUXEMBOURG
Luxembourg
MALAYSIA
Kuala Lumpur
NETHERLANDS
Amsterdam
NORWAY
Trondheim
PEOPLE’S REPUBLIC
OF CHINA
BeijingHangzhouHong Kong
Shanghai

SINGAPORE
Singapore
SOUTH KOREA
Seoul
SWITZERLAND
ZurichTAIWAN
Taipei City
THAILAND
Bangkok
UNITED ARAB EMIRATES
Abu Dhabi
UNITED KINGDOMEngland
LondonScotland
Edinburgh

POLAND
GdanskKrakow

California
IrvineLos Angeles
Redwood City
Sacramento
San Francisco

MissouriKansas City
New Jersey
CliftonJersey City
Princeton
New York
New York City

Connecticut
Stamford

North Carolina
CharlotteGeorgia
Atlanta

Pennsylvania
BerwynIllinois
ChicagoHoffman Estates

Texas
AustinIndiana
Indianapolis
Massachusetts
BostonBurlington
Cambridge
QuincySAUDI ARABIA
RiyadhGOVERNANCE

UNITED STATES
ArizonaScottsdale

SOCIALENVIRONMENTAPPENDIX

127

State Street Corporation
One Congress Street, Boston, MA 02114-2016www.statestreet.com

This communication is provided by State Street Bank and Trust Company,
regulated by the Federal Reserve Board, and/or State Street BankInternational GmbH, authorized by Deutsche Bundesbank and supervised by
the German Federal Financial Supervisory Authority, or their bank and nonbank affiliates (“State Street”). Products and services are offered by State
Street to professional clients or eligible counterparties or their equivalentand may not be available in all jurisdictions.
Activities described herein may be conducted from offshore. Information
provided is of a general nature only and has not been reviewed by any
regulatory authority.
This communication is intended for general marketing purposes, and theinformation contained herein has not been prepared in accordance with legal
requirements designed to promote the independence of investment research.
It is for clients to determine whether they are permitted to receive researchof any nature. It is not intended to suggest or recommend any transaction,
investment, or investment strategy, does not constitute investment research,nor does it purport to be comprehensive or intended to replace the exercise
of an investor’s own careful independent review and judgment regarding
any investment decision.

This communication is not intended for retail clients, nor for distribution to,and may not be relied upon by, any person or entity in any jurisdiction or
country where such distribution or use would be contrary to applicable law
or regulation. This communication or any portion hereof may not be reprinted,
sold or redistributed without the prior written consent of State Street. This
communication and the information herein does not constitute investment,
legal, or tax advice and is not a solicitation to buy or sell securities or any
financial instrument nor is it intended to constitute a binding contractual
arrangement or commitment by State Street of any kind. The information
provided does not take into account any particular investment objectives,
strategies, investment horizon or tax status.
The views expressed herein are the views of State Street as of the datespecified and are subject to change, without notice, based on market andother conditions. The information provided herein has been obtained fromsources believed to be reliable at the time of publication, nonetheless, we
make no representations or assurances that the information is completeor accurate, and you should not place any reliance on said information.
State Street hereby disclaims any warranty and all liability, whether
arising in contract, tort or otherwise, for any losses, liabilities, damages,
expenses or costs, either direct, indirect, consequential, special, or punitive,
arising from or in connection with any use of this document and/or the
information herein.

This communication may contain information deemed to be forward-looking
statements. These statements are based on assumptions, analyses andexpectations of State Street in light of its experience and perception ofhistorical trends, current conditions, expected future developments andother factors it believes appropriate under the circumstances. Digital assets
are subject to risk including, but not limited to, market risk, counterparty risk,
legal, tax, and regulatory risk. All information is subject to change without
notice. Past performance is no guarantee of future results.
Please contact your State Street representative for further information.
To learn how State Street looks after your personal data,
visit:
h t t p s : // w w w. s t a te s t r e e t .c o m /u t i l i t y/p r i va c y- n ot i c e . h t m l .
Our Privacy Statement provides important information about how we manage
personal information.
No permission is granted to reprint, sell, copy, distribute, or modify any
material herein, in any form or by any means without the prior written consent
of State Street.
©2024 State Street Corporation and/or its applicable third party licensor.
All rights reserved.
5627160.1.2.GBL.. Expiration date: 05/13/2026