ACCELER ATING
2021 ESG REPORTGROW TH2021 ESG REPORTOUR PURPOSE IS CLEAR:

To help create better outcomes
for the world’s investors and thepeople they serve.
Whether we’re helping investment companies operate more
effectively, providing valuable market insights, launching innovative
investment products, or acting sustainably, we are focused on
cultivating collaborative partnerships.
As one of the world’s largest service providers and managers of
institutional assets, our success depends upon the success of our
stakeholders — our clients, employees, investors and the communities
we serve. We believe addressing environmental, social, andgovernance (ESG) issues can help generate better long-term outcomes
for the world’s investors and the people they serve.
For more information, visit statestreet.com.

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S TAT E S T R E E T C O R P O R AT I O N

2021 ESG REPORTOUR BUSINE S S

State Street has become one of the world’s largest

Through our investment servicing business,

providers of financial services to institutional investors

we provide core custody, accounting and fundwith $43.7 trillion of assets under custody and/or

administration, and performance analytics foradministration and $4.1 trillion of assets under

traditional and alternative assets as well as multi-

management . The firm operates in more thanasset class investments. Our global markets

100 geographic markets worldwide. Given the impact

capabilities span electronic trading, securitiesof our size and global reach, as well as the constantly

lending, and collateral and liquidity management,

evolving role of the financial sector in the worldalong with specialized investment research andeconomy, we believe it is important to operate in anmarket insights.

1

environmentally and socially responsible way. As wedevelop and deliver solutions to our clients’ business

As the first-ever front-to-back platform offered

challenges and help them achieve their financial goals,

by a single provider, State Street AlphaSM connects

we must identify and manage critical environmental,

investment tools, insights, and partners for greatersocial, and governance (ESG) issues for our clients

speed and efficiency across the front, middle

as well as in our own business. In doing so we will help

and back office. With State Street DigitalSM, we’reto create a more sustainable future for our businessbuilding on our strong digital services platforms andand the communities we serve.

solutions to help clients transition and thrive in the
new digital economy.

KEY BUSINESS OFFERINGS

Our investment management business, State Street
Global Advisors, is the world’s fourth-largest asset

As an essential partner to institutional investors,

manager and a pioneer in ETF and index investing.

our purpose is to help create better outcomes for

Global Advisors provides investment solutions

the world’s investors and the people they serve.

across the risk-return spectrum, covering all major

Our clients — asset managers and owners, insurance

asset classes, investment styles, and vehicles.

companies, official institutions, and central banks —rely on us to deliver solutions that support theirgoals across the investment life cycle.
1

Assets under management as of December 31, 2021, includes
approximately $61 billion of assets with respect to SPDR® products forwhich State Street Global Advisors Funds Distributors, LLC (SSGA FD)
acts solely as the marketing agent. SSGA FD and State Street Global
Advisors are affiliated.

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S TAT E S T R E E T C O R P O R AT I O N

CONTENT S

39

C L I M A T E C H A N G E 			39

Our own operations			

44

What we do for our clients			

A S TAT E M E N T F R O M R O N O ’ H A N L E Y

46

What is ahead in 2022			

11

A LETTER FROM RICK LACAILLE49

I N C L U S I O N , D I V E R S I T Y, A N D E Q U I T Y

14

2 0 21 AT A G L A N C E

58Gender equality				59

Enhancing supplier diversity

17

S TA K E H O L D E R E N G A G E M E N T

18Materiality				63

E M P L O Y E E E X P E R I E N C E 		

63

Cultivating a supportive culture		

25

E S G I N T E G R A T I O N 			

66

Employee engagement			

25

Asset stewardship			68

Supporting employee health and well-being

29

ESG investment solutions			

70

Talent acquisition, retention, and development

30

State Street Total ESG			74

Corporate Citizenship			

31

Treasury ESG investment and funding strategies

32

Municipal finance81

34

Tax-advantaged investments		

BOARD GOVERNANCE AND ESG
MANAGEMENT

34

Commercial real estate			87

RISK, ETHICS, AND COMPLIANCE

36

ESG research and thought leadership		91

O P E R AT I O N A L A N D C Y B E R
RESILIENCE

91

Cyber resilience				92

Operational resilience			1

OUR PURPOSE

3O U R B U S I N E S S 			

7

2021 ESG REPORT95

D A T A P R I V A C Y 			161

G R I I N D E X 				

97A P P E N D I X 				19 5U N S U S TA I N A B L E D E V E L O P M E N T
G O A L S 					

99S U S TA I N A B I L I T Y A C C O U N T I N GS TA N D A R D S B O A R D ( S A S B ) R E P O R T

205

U N G L O B A L C O M P A C T 		209

EU DIRECTIVE ON NON-FINANCIALREPORTING CONTENT LISTINGS

2 13

E E O -1 R E P O R T 			

2 17

A S S U R A N C E L E T T E R 			

100

Asset Management and Custody Activities

117

Software and IT Services Activities		

13 1

TA S K F O R C E O N C L I M AT E - R E L AT E D
FINANCIAL DISCLOSURES (TCFD)R E P O R T 				

132Introduction				132

Governance				135

Strategy					

138Risk management			

153

Metrics and targets				5

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S TAT E S T R E E T C O R P O R AT I O N

R O N A L D P. O ’ H A N L E Y
Chairman and CEO

2021 ESG REPORTA S TATEMENT FROMRON O’H A NLE Y
Welcome to our annual Environmental, Social,

We manage a wide variety of ESG investment

and Governance (ESG) Report, which describes

strategies to enable our clients to express their

State Street’s approach to ESG matters across

ESG objectives. As an asset servicer, we enable

our company and our industry, and our impact

asset owners and asset managers to become moreon the communities in which we operate and theeffective in their understanding and usage of ESG as

wider world.

an investment and business lever. And as a global
corporation with nearly 40,000 employees, we have2021 proved an especially noteworthy year for

an ESG strategy against which we execute a range of

ESG. The 2021 United Nations Climate Change

operational initiatives to achieve our own ESG goals.

Conference (COP26) and a heightened focus on

These activities range from carefully managing our

climate change, plus the continuing impact oforganization’s environmental impact; to ensuring

COVID-19 drove ESG to the forefront for many

resiliency; to bolstering inclusion, diversity, andindustries, including financial services. Investors

equity across our workforce and suppliers.

responded accordingly, demonstrating a growing
desire to deploy capital with a sustainable purpose.

Our ESG progress in 2021 included the launch of
several new products. ESG strategies constituteAs one of the world’s largest asset managers

more than $516 billion of State Street’s total year-end

and custodians, State Street has been deeply

assets under management. On the research front,

engaged around ESG issues for some time.

an important study from State Street Associates

Our approach aligns with our various roles:

demonstrated how institutional investors have1) as an asset manager, 2) as an asset servicer,

decarbonized their portfolios by thirty percent sinceand 3) as a responsible corporation and active

January 2019. State Street played an important roleindustry partner. As an asset manager — and aamong industry and world leaders at COP26, along

major investor in thousands of global companies

with our ongoing efforts to advance the goals of— we engage on ESG issues that drive long-term

partner organizations.

value through our asset stewardship practices.

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S TAT E S T R E E T C O R P O R AT I O N

We also made significant strides advancing theNonetheless, we believe that last year marked

goals of our 10 Actions to Address Racism andsignificant shifts in ESG awareness, acceptance,

Inequality and distributed almost $25 million in

and advancement. A world that is warming beyond

support of charitable organizations around thewhat science tells us is a critical tipping point poses

world through State Street Foundation—all while

a risk to long-term investors. These same investors

maintaining high levels of employee engagement.

increasingly are demanding that companies act inways that help maximize the probability of attractive

Consistent with prior reports, we measure andreturns over an extended time horizon. And, without

disclose our ESG activities according to theovergeneralizing, the next generation of stakeholders

frameworks created by the Sustainability Accounting

expects to see ESG considerations reflected in whereStandards Board (SASB), the Task Force on Climate-they work, how they spend, and in which companies

related Financial Disclosures (TCFD), and the Global

they choose to invest.

Reporting Initiative (GRI). This report also fulfills
our obligations as a signatory to the United Nations

In short, ESG has largely moved from a question(UN) Global Compact and describes how our ESG-of “what” to “how” and “when.” Looking ahead, we

related activities support progress toward the UN

believe that accelerating sustainable growth will

Sustainable Development Goals.

be tantamount to the promotion and protection of
long-term value. That shift in sentiment will be to

Notwithstanding this progress, the ESG path thethe benefit of our stakeholders, our industry, ourworld is on is a complicated one. In particular, thecommunities, and the planet we all share.

journey to net-zero carbon emissions will not bea straight line. Oversimplification, false promises,

Sincerely,

and lack of industry-wide standards will not do. Key
concerns remain around divestment, the energy
transition, insufficient and inconsistent data andmetrics, and challenges around “greenwashing.”
Much work remains to be done.

R O N A L D P. O ’ H A N L E Y
Chairman and CEO

2021 ESG REPORT

Accelerating sustainablegrowth will be tantamountto the promotion and protectionof long-term value... to thebenefit of our stakeholders,our industry, our communities,
and the planet we all share.

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S TAT E S T R E E T C O R P O R AT I O N

RICK LACAILLERICK LACAILLE
Global Head of ESG

2021 ESG REPORTA LE T TER FROMRICK L ACA ILLE
The past year saw greater international momentum

Relative to our prior assessment in 2019, ouraround climate change in the wake of COP26, further

material issues have shifted slightly to reflect how

uncertainty as the global pandemic continued, andour stakeholders have evolved their views on the

deeper engagement within the corporate world

importance of topics like ESG integration and dataaround environmental, social and governanceprivacy. While our board of directors has overseen(ESG) issues. Against this backdrop, the role ofmaterial ESG issues since 2018, we are driving

the financial sector as a catalyst for change andaccountability for our material issues further down in

a conduit for addressing ESG concerns became

the organization as part of our enterprise-wide ESG

increasingly relevant.

integration efforts.

At State Street, we believe addressing ESG issues

Last year, I took on a new role overseeing Statecan help generate better long-term outcomes.

Street’s ESG efforts. I am pleased to report that

Through our roles as an asset servicer, asset

we created greater momentum internally aroundmanager and a responsible corporation, we aim

managing ESG issues this year, which presented

to create value for our key stakeholders includingmuch higher levels of engagement around these

our clients, employees, shareholders, and theissues within our organization and with our clients.

communities in which we live and work.
We take pride in being a trusted partner to our
In 2021, we conducted a formal assessment,clients as they navigate an evolving ESG landscapeengaging with our stakeholders to identify theand rapidly changing regulatory environment. In

ESG issues that they believe are most important

our asset management business, we launched theand material to our business, which are addressedState Street Sustainable Climate Bond Funds in 2021,

in this report.

adding to our broad range of ESG strategies.

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S TAT E S T R E E T C O R P O R AT I O N

In our asset servicing business, we strengthened ourWhile our greenhouse gas emissions decreased bycapabilities to assist clients in addressing climate-

25 percent in 2021, compared to the 2019 baseline,

related data challenges, and improved our ESG risk

we are aware that reduced office occupancy —analytics and reporting capabilities. We also delivered

and therefore reduced energy use — led to thisthought leadership on timely themes and topics, andresult. We remain committed to closely monitoring

insightful research through State Street Associates.

and further reducing our emissions wherevertechnically and economically feasible. In 2021,

As part of our asset stewardship agenda, we

our waste recycling rate ticked up to 86 percent —encouraged our portfolio companies to discloseachieving our 2025 target — and water consumption

more detail on board and workforce diversity, andwas reduced by 45 percent.

focused our engagement efforts on racial and ethnic
diversity. The stewardship team also partnered

We made great strides in our efforts to enhancewith Russell Reynolds Associates and the Ford

workforce and external stakeholder engagements

Foundation to deliver recommendations on how

around inclusion, diversity and equity, underpinnedboards can elevate their focus on inclusion, diversity,

by our 10 Actions to Address Racism and Inequality.

and equity.

In addition, we further integrated inclusion,
diversity and equity principles into our business by

We continue to stress the importance of board

underwriting bond issues using minority-owned

diversity because we know it reduces the risk ofunderwriting houses for the first time – a gamegroupthink and because a range of perspectives is achanger for these houses in accessing Wall Street.

positive factor for effective governance. We achieved
greater gender and ethnic diversity within our

Due to our significant role in the financial ecosystem,

State Street board with 30 percent of our directors

we recognize we have a unique ability to scale ouridentifying as female and 23 percent of our directors

influence and impact. That’s why we continue toidentifying as racially diverse.

engage in industry collaborations and other strategic
partnerships that help us amplify our impact, with a

As a leading global corporation, we are committed

focus on ESG issues we believe to be most material

to operating in an environmentally and sociallyto our stakeholders and the business.

responsible way by carefully managing ouroperational footprint and corporate activities. In

Many of our external engagements are intended

2021, we maintained our carbon neutrality and areto amplify climate change action. In April 2021,

well placed to reach our goal of 27.5 percent carbon

we joined the Net Zero Asset Managers Initiative,

reduction in Scope 1 and Scope 2 emissions by 2030.

a coalition that supports the goal of net-zerogreenhouse gas emissions by 2050 or sooner.

2021 ESG REPORTIn addition, our Chairman and CEO, Ron O’Hanley,

In the following ESG report, we outline our approachassumed leadership of the Sustainable Market

to identifying, monitoring, measuring and managing

Initiative’s Asset Manager and Asset Owner

our material ESG issues, including the risks andTask Force, which is a group of CEOs that aims

opportunities that affect our business. We haveto find scalable ways for institutional investors

detailed our specific achievements and measures of

to facilitate the reallocation of capital toward

progress throughout the year.

sustainable solutions. Finally, we have a longstanding partnership with the Cambridge Institute

While it was a year when the world put climate change

for Sustainability Leadership, which is strong

issues front and center, we continued to consider thein environmental science, biodiversity, andimpact of all the material issues facing our business,understanding the financial links of this sector.

and how we can collectively build a more diverse,
equitable, and inclusive world, better reduce our

We also participate in global organizations thatcarbon footprint, and help our clients, workforce, andtackle the challenges of sustainability, prosperity,communities prosper.

and equity. We are a member of the Council for
Inclusive Capitalism, a group of global leadersSincerely,

doing business in ways that benefit people, theircommunities, and the planet. State Street is alsopart of FCLTGlobal, whose mission is to focus capitalon the long term to support a sustainable andprosperous global economy.

RICK LACAILLE
Executive Vice President and Global Head of ESG

Although this ESG Report covers information from the 2021 calendar year, in the final months prior to our 2022 publication date,
the world witnessed the start of a war in Ukraine, which is impacting the ESG landscape in many ways, and is relevant to issues
covered throughout this report.
As a global systemically important bank, we are supporting the stability of the financial ecosystem and adhering to sanctions,while serving as a trusted partner to clients as they navigate through a complex regulatory environment. We are moved by
the outpouring of support from our employees, particularly in Poland, where they are engaging in multiple fundraising initiatives,
opening their doors to house refugees, and acting as translators and interpreters at information points across Poland and at theborder with Ukraine.
To keep informed about State Street’s perspectives and actions, we encourage readers to visit statestreet.com for
additional information.

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ESG SNAPSHOT1E N V I R O N M E N TA L

SOCIAL

GOVERNANCE

-25%

99%

30%

Greenhouse gas emissions(Goal: 27.5% by 2030)

Employees completed
unconscious bias training

Female board
members2

-45%

$25M

23%

Water usage(Goal: 25% by 2030)

Total giving by
State Street Foundation

Racially-diverse
board members2

86%

115,600

Waste recycling rate
(Goal: 80% by 2025)“Bravo” program employee
recognition moments recorded

12 of 13
Independent
board members2

10

43%

Actions Against Racism
and Inequality

Increase in Tier 1 supplier
diversity spend from 2020

100%

2:1

58%

Achieved LEED Gold Certification
at our new Boston headquarters

Matching employee gifts to specificorganizations focused on
addressing racial equity issues

Companies State Street Global Advisors
engaged with that had all-male boards
have added at least one woman director

100%

Carbon neutrality

3

All data as of December 31, 2021 unless otherwise noted
Data as of April 20, 2022
3
For Scope 1 and 2, based on independently reviewed data and resultant investment in renewable energy credits and carbon offset projects.
12

2021 ESG REPORT

Each year, State Street’s ESG team sets goals for the coming year that aim to address ESG issues that have been
identified as “material” by our key internal and external stakeholders. These goals are then approved by the
Executive Corporate Responsibility Committee (ECRC). We are proud to have accomplished three of our five 2021
Corporate Responsibility goals, and the remaining two are considered ongoing initiatives. We actively engage andcollaborate with academics, non-governmental organizations, industry associations, and other critical partners
to further our corporate responsibility and ESG efforts, and we are currently pursuing our new 2022 ESG goals.

2021 E S G G OA L S

COMPLETEDONGOING

Launch communications plan for internal andUnder leadership of new ESG head, further integrate

external audiences on how and why State Street

the development of a cross-divisional approach toembeds ESG across the enterprise

ESG products, services and thought leadership forour clients

Maintain carbon neutrality (for Scope 1 and Scope 2

Ensure coordinated alignment of enterprise-wide

emissions) and show progress in absolute emissions

ESG initiatives, including expanding our ESG risk

reductions on the path to net zero by 2050, as well as

management, governance, and reporting capabilities

progress in water reduction and waste recycling

and enhanced focus on racial and social equity

Issue a 2020 ESG Report that includes complete
SASB and TCFD responses, as part of a new annual
reporting framework including 10K, proxy and new
Annual Report

2022 ESG GOALS

Enhance ESG disclosures, including release of a broad

Amplify our impact within and outside of the company

2021 ESG Report and increased climate-related transparency

on the ESG issues we believe to be most materialContinue aggressive pursuit of environmental goals,

Ensure coordinated alignment of enterprise-wide ESG

including maintaining carbon neutrality

initiatives, including clear accountability and managementof our ESG material issues

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2021 ESG REPORTS TA KEHOLDERENGAGEMEN T
State Street has many stakeholders including• Communities. We work to strengthen our

employees, clients, shareholders, communities,

communities through a combination ofregulators, and suppliers. We regularly engage with,philanthropy, volunteering, and strategic

listen to and learn from these stakeholders in orderpartnerships.

to grow.
• Regulators. Our teams communicate frequently• Employees. We facilitate employee engagementwith regulators and stay up to speed on the latest

in a variety of ways, including through employee

ESG regulations and reporting requirements.

networks, leadership development programs,

We expect regulatory scrutiny of sustainable

flexible work options, global training andaccounting and reporting to increase as moredevelopment options, and comprehensive benefits.

companies step up their ESG commitment.

• Clients. Collaborating with investment analysts

We are committed to driving long-term value for ourand business partners keeps us focused on

stakeholders. To that end, it is critical that we engage

innovation, which enables our clients to seize newwith both internal and external stakeholders to makeopportunities for growth.

sure we have a current understanding of the ESG
issues that are most important to them and that are• Shareholders. Through a robust shareholder

deemed material to our business. This effort helps us

engagement program, we engage on ESG subjects

to more effectively analyze, address, and report onsuch as corporate governance mechanisms andthese issues in a comprehensive way.

human capital in addition to financial performance.
For more details on how we engage with our
stakeholders, refer to the GRI Index.

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S TAT E S T R E E T C O R P O R AT I O N

M AT E R I A L I T Y

The updates to this list reflect our continued ESG
integration efforts, which are further embedding ESG

A central component of our stakeholder engagement

principles across the enterprise, and the growing

is our materiality mapping process. This exercise isimportance of ESG in the financial services industry

an integral part of our own ESG management, andat large. Our refreshed material issues have helped

we work to lead by example for our clients on best

to inform our ESG strategy, approach and reporting.

practices in identifying and addressing ESG factors.
Material ESG issues are those that are most relevant

A LEGACY OF ESG ENGAGEMENT

to an organization’s ESG impacts and ultimately
its ability to create long-term value. Every two

State Street was an early proponent of low-carbon

years, we conduct a robust materiality assessment

investing and has been a signatory of the United

to help us understand the ESG issues we face.

Nations Principles for Responsible Investment

These results help inform how we report on our(UNPRI) since 2012. State Street Global Advisors is

performance according to certain ESG metrics.

one of 20 asset managers named to the PRI Leaders

Our assessment process includes an in-depthGroup, which recognizes excellence in climate

analysis of potentially material issues, resulting

risk reporting. In 2020, Global Advisors became afrom the review of inputs from multiple reporting

signatory to Climate Action 100+, an investor-led

frameworks and benchmarking exercises, as

initiative with the goal of ensuring the world’s largest

well as feedback gathered from surveys andgreenhouse gas emitters take necessary action on

stakeholder interviews.

climate change. In addition, in 2021, Global Advisors
signed onto the Net Zero Asset Managers initiative.

In 2021, we conducted a materiality review to update
our ESG issues. In this latest assessment, ourWe are also members of a range of organizations

stakeholders determined the following ESG topics

addressing issues within ESG including the Boston

are material to State Street;Green Ribbon Commission, Council for Inclusive
Capitalism and FCLTGlobal. We will continue to• Board governance and ESG management

engage with our industry peers, as well as global• Climate change

initiatives working to create positive impact, such

• Data privacy

as the Sustainable Markets Initiative (SMI).

• Employee experience• ESG integration• Inclusion, diversity and equity• Operational and cyber resilience• Risk, ethics and compliance2021 ESG REPORTS TAT E S T R E E T ’ S M AT E R I A L T O P I C SBOARD GOVERNANCE AND ESG MANAGEMENTC L I M AT E C H A N G E

D ATA P R I VA C Y

EMPLOYEE EXPERIENCEE S G I N T E G R AT I O N

I N C L U S I O N , D I V E R S I T Y, A N D E Q U I T Y

O P E R AT I O N A L A N D C Y B E R R E S I L I E N C E

RISK, ETHICS, AND COMPLIANCE

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S 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

30% ClubIIF Sustainable Finance Working Group

Advisory Committee at Yale’s Institute for Sustainable
Finance

International Business Council
International Integrated Reporting Council

Alliance of CEO Climate Leaders
Investment Leaders Group (part of CISL)
Asian Corporate Governance Association
Investor Leadership Network
Boston College Center for Corporate Citizenship
ISG - Investor Stewardship Group
Boston Green Ribbon Commission
Japan Investment Advisers Association
Boston Women's Compact
Japan Securities Dealers Association
Business for Social Responsibility
Japan Stewardship CodeBusiness Roundtable
Net Zero Asset Managers Initiative
Cambridge Institute for Sustainability Leadership
One Planet Asset Managers initiative
CDP
One Waterfront CEO Roundtable
Ceres Paris-Aligned Investment Working Group
Principles of Responsible Investment (PRI)
CII - Council of Institutional Investors
RIA - Responsible Investment Association Canada
Climate Action 100+
SASB Investor Advisory Group
Climate Bonds Initiative
Sustainable Markets Initiative
Coalition on Climate Resilient Investment (CCRI)
Sustainable Trading
Council for Inclusive Capitalism with the Vatican
The Investment Trust Association
CSR Asia
UN Force for Good Initiative
CSR Europe
Embankment Project for Inclusive Capitalism (EPIC)

United Nations Environment Programme FinanceInitiative (UNEPFI)FCLTGlobal

United Nations Global Compact (UNGC)

Future Investment Initiative

United Nations Institutional Investors Group on Climate
Change (IIGCC)

Global Reporting Initiative (GRI)
Green Bond Principles
Green Power PartnershipGreentown LabsGRESB - Global Real Estate Sustainability Benchmark
Harvard Law School Program on Institutional Investors

Vatican’s Dicastery for Integral Human Development
and the University of Notre Dame
World Economic Forum Transition Finance Steering
Committee

2021 ESG REPORTS U S TA I N A B L E M A R K E T S I N I T I AT I V E

A DVA N C IN G E S G T R A N SPA R EN C Y
AND DISCLOSURE

In 2021, SMI was State Street’s primary external
partnership dedicated to driving action on climate

Our legacy of ESG transparency is illustrated bychange. Our Chairman and CEO Ron O’Hanley is

our early adoption of standards for ESG reporting

playing a leading role in the SMI, which was launchedand disclosure, as we began our journey with

by His Royal Highness (HRH) the Prince of Wales incorporate responsibility, now ESG reporting, in 2001.

2020. At HRH’s request, Ron convened the CEOs of

Increasingly, regulators are adopting ESG standards,

some of the world’s largest asset managers andand the corporate world — including many of ourowners to form SMI’s Asset Manager and Asset Owner

stakeholders — expects companies to meet their

Task Force (Task Force) in early 2021, ahead of COP26

demands for increased ESG transparency. We expect

in November. The Task Force’s purpose is to findthat this movement toward greater transparency andmore effective ways of deploying institutional capitalsophistication of disclosures in ESG reporting willto accelerate the transition to a net-zero world byonly continue to grow.

using capital already invested in companies as well
as fresh capital investments directed at climate

As global reporting organizations collaborate to

mitigation and adaptation projects.

harmonize disclosures, companies are bracing forincreased regulatory ESG reporting requirements

The Task Force focused on four key areas in 2021:

coming around the bend in the next few years.

stewardship and engagement, net-zero pathways
for asset managers and asset owners, scaling

Several developments are driving this trend:sustainable investments and creating climatetransition funds. The Task Force continues to• The International Financial Reporting Standards

collaborate on how asset managers and owners

Foundation consolidated the Value Reporting

can use their physical and intellectual capital as

Foundation and the Climate Disclosure Standards

well as their standing to devise and implement

Board into the International Sustainability

sustainable solutions.

Standards Board, which will develop baseline
global standards for ESG and sustainability
reporting.
• Momentum for ESG regulation in Europe is rising,as evidenced by the European Union’s developmentof an ESG taxonomy, introduction of the Sustainable
Finance Disclosure Regulation and approval inprinciple of the EU’s Complementary Climate
Delegated Act.

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S TAT E S T R E E T C O R P O R AT I O N• China and the European Commission reached apreliminary agreement on a common taxonomy forsustainable finance.
• The World Economic Forum’s International
Business Council introduced ESG metrics anddisclosures. Importantly, the Big Four global
accounting firms worked together on the project —adding credibility in a very crowded space.
We believe transparent reporting on ESG issues
and convergence on ESG disclosure standards isimportant to help investors be better informed for
decision making. The major frameworks we reportagainst include the Global Reporting Initiative (GRI),
the Sustainability Accounting Standards Board(SASB), the Task Force on Climate-related Financial
Disclosures (TCFD) and the European Union’s NonFinancial Reporting Directive. These disclosures canbe found in the Appendix of this report. Finally, alldata within this report is as of December 31, 2021
unless otherwise noted.

2021 ESG REPORT

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2021 ESG REPORTE SG INTEGR ATIONA SSE T STE WARDSHIP

2021 was a year of progress toward greater ESG
integration across State Street. We developed
tangible guidelines and procedures both forState Street Global Advisors is the asset

constructing our investment portfolios and managing

management arm of State Street Corporation andour financing needs in an effort to generate long-

the world’s fourth-largest asset manager. Founded interm value for our clients while strengthening our

1979, Global Advisors is an ETF and indexing pioneer.

operational resiliency.

It currently manages $4.1 trillion1 in active and index
strategies for more than 2,100 clients in 58 countries.

Highlights of our integration of ESG considerations
over the past year include:

State Street Global Advisors’ status as one of
the largest index providers and investors in the• Advocating for greater diversity in corporate

universe of globally listed companies gives usboards and workforces

the scale and influence to be a leader in asset
stewardship. As a long-term significant shareholder• Increasing the number of diverse-owned banking

with a global focus, we believe companies thatpartners

successfully embrace ESG principles are thosethat have strong, effective, independent boards• Launching the State Street Sustainable Climate

and incorporate sustainability into their long-term

Bond Funds

strategies. Our approach to asset stewardship isdesigned to have an impact and drive positive ESG• Creating ESG guidelines for our securities lending

outcomes that promote long-term, sustainablebusiness

returns for our clients.

• Enhancing oversight of the board of directors on
ESG issues by assigning responsibilities to eachcommittee of the board

1

This figure is presented as of December 31, 2021 and includes approximately$61 billion of assets with respect to SPDR products for which State Street
Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as themarketing agent. SSGA FD and State Street Global Advisors are affiliated.

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S TAT E S T R E E T C O R P O R AT I O N

Our approach builds on traditional research such as

Stewardship ESG priorities

analyzing financial statements, industry trends, andEvery year, State Street Global Advisors identifies

company growth strategies. When we ask portfolio

strategic priorities that inform the focus of ourcompanies how they approach ESG factors, we

stewardship activities. In 2021, our thematic focus

consider things like:areas were gender diversity, racial & ethnic diversity,
human capital management, climate change, and• Environmental: Does the company use resourcesboard accountability.

efficiently? What environmental impacts, if any,pose risks to the company?

In 2021, State Street Global Advisors continued toleverage our vote and voice to advance diversity,• Social: How does the company treat its employees,

equity and inclusion across our portfolio. For

customers, community, and all internal andexample, we continued to make progress on our

external stakeholders?

Fearless Girl campaign which requires companies tohave at least one woman director, and we introduced• Governance: Is the company’s leadership
structured to facilitate accountability anda new proxy voting policy focused on increasing
public disclosures related to board diversity.

independence?
As capital markets are transitioning to a more

Fearless Girlsustainable global economy, material ESG issues

Much has changed in the composition of corporate

have come to the forefront alongside moreboards since we launched the Fearless Girl

traditional strategic and financial concerns. In

campaign in 2017. Currently, more than 60 percent

2021, Global Advisors observed a record number ofof the 1,548 publicly traded companies we identified

shareholder proposals on ESG and climate-relatedwith previously all-male boards have added at least

topics, with a record number receiving majority

one woman director. Building on State Street’s

support. With this in mind, Cyrus Taraporevala, CEOleadership, the market has coalesced around theof State Street Global Advisors, recently released

issue of gender diversity on boards and we’ve seen

his letter on our 2022 proxy voting agenda, outlining

companies answer the call: Now, every company inour new voting policies to support the transition

the S&P 500 has at least one woman on its board.

toward a low-carbon future and increased gender

In 2022, we will build on the success of the Fearlessdiversity on boards.

Girl campaign by expanding our expectation thatcompanies should have at least one woman director
on their board from only companies in select indicesto all holdings in all markets globally.

2021 ESG REPORTFEARLESS GIRL

Inclusion, diversity and equity advocacy

Our report was shared with State Street’s board in

Beyond board diversity, our team is focused onan effort to enhance our own oversight practices

ensuring that companies have robust inclusion,in this area. Despite recent advances in diverse

diversity, and equity (IDE) strategies in place, asboard representation and corporate disclosures ofwell as board oversight of those efforts. In 2021, ourthe racial and gender composition of workforces,

asset stewardship team collaborated with Russell

there is still progress to be made. In the 2022

Reynolds Associates and the Ford Foundation toproxy season, we will take voting action against

study best practices for effective board oversight

responsible directors if: 1) the boards of companiesof racial equity. This collaboration produced a set ofin the S&P 500 and FTSE 100 do not have a person

recommendations on how boards can elevate theirof color and 2) S&P 500 companies do not disclose

IDE focus. This effort was part of our enterprise-wide

their EEO-1 reports.

10 Actions to Address Racism and Inequality. The
goal of Action No. 7 is to leverage Global Advisors’
stewardship efforts to determine what we can learn
from others to develop best practices and become abest-in-class organization in combatting racism.

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S TAT E S T R E E T C O R P O R AT I O N

FE A R L E S S GIR L C A M PA I GN IM PAC T

Number of woman members added to boards of directors

41
15
652
174
10

EUROPE

7

CANADA
UNITED KINGDOMU N I T E D S TAT E S

2JA PA NHONG KONG

47
SINGAPORE

AUSTRALIAT O TA L : 9 4 8

2021 ESG REPORTESG INVESTMENT SOLUTIONS

Our offerings include exclusionary screening,
ESG best-in-class solutions to deliver ESG

At State Street Global Advisors, our mission is toperformance, ESG integration for alpha-driven

invest responsibly to enable economic prosperity

investment strategies, and climate investment

and social progress. We have been among oursolutions.

industry’s leaders in asset stewardship as well as in
ESG indexing and active management across asset

See our SASB report for a detailed explanation ofclasses. State Street Global Advisors currently

Global Advisors’ ESG investing by asset class.

has more than $516 billion in ESG assets undermanagement, comprising roughly 12.5 percent of
R-Factor™

State Street’s assets under management.

Drawing on data from five leading ESG data sets
Our approach to ESG investing combines customized

and leveraging the SASB transparent materiality

portfolio construction, our R-Factor™ ESG scoring

framework, our Responsibility Factor1, or R-Factor™,

system, a wide range of ESG investment solutions

scoring system generates unique ESG scores forand thematic climate investment strategies:

more than 10,000 listed companies globally andallows us to evaluate a company’s performance

Customized portfolio construction: We help clients

against both regional and global industry peers. The

construct ESG-resilient portfolios and manage risk

score is powered by ESG data from five providers —based on their ESG preferences and risk/return

Sustainalytics, ISS-ESG (formerly Oekom Research),

profile.

Moody’s V.E (formerly Vigeo-EIRIS), Refinitiv, and ISSGovernance — in order to improve overall coverage

ESG scoring through R-Factor™: Our ESG scoring

and remove biases inherent in existing scoring

system gives listed companies a unique score,

methodologies. R-Factor™ measures the performanceenabling investors to develop sustainable portfolios.

of a company’s business operations and governanceas it relates to financially material ESG challenges

ESG investment solutions: We make ESG investment

facing the company’s industry, including climate-decisions easier for our clients by leveraging industry-

related issues. It is designed to provide companies aleading data providers, the materiality frameworkroad map to improve ESG practices and disclosure,designed by the Sustainability Accounting Standards

and to help create sustainable capital markets.

Board (SASB), and the ESG expertise we have built
over more than three decades.

1

Responsible-Factor (R-Factor) scoring is designed by State Street toreflect certain ESG characteristics and does not represent investment
performance. Results generated out of the scoring model is based onsustainability and corporate governance dimensions of a scored entity.

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S TAT E S T R E E T C O R P O R AT I O N

R-Factor™ was designed around four core pillars that

L O O K I N G A H E A D : C L I M AT E

define our approach to ESG data and scoring: focus

T R A N S I T I O N S T R AT E G Y

on materiality, commonly accepted and transparent

Few equity strategies currently address the reality

frameworks (the SASB materiality framework, inthat the road to net zero emissions will potentiallythis specific case), multiple data sources, and strong

take several decades. To successfully take that roadstewardship.

requires a long-term, forward-thinking investment
approach. Global Advisors has developed a new

R-Factor™ is the first ESG scoring system thathigh conviction, active equity strategy which targets

offers companies a road map on how to manage

leaders in climate transition planning and progress.

and disclose their ESG practices, giving them the

We believe our Global Climate Transition strategy

information needed to understand exactly what

will offer investors an opportunity to benefit from thedrives the score. This system represents our best

journey to net zero.

thinking on the measurement of ESG performance.
We leverage R-Factor™ to help our clients andportfolio companies better understand their ESG

State Street Total ESG

characteristics and see how well they meet theState Street helps our clients to measure and manage

marketplace’s expectations. Just as important,

ESG risks and opportunities, and address ESG-

we use it extensively in our own business. Our

related data, risk and regulatory challenges via ESG

portfolio managers employ R-Factor™ to help makeportfolio management, risk analytics, and reporting

investment decisions and our asset stewardshipcapabilities. State Street Total ESG provides a multi-

team leverages it for engagement purposes.

vendor suite of ESG data to meet investment andreporting needs across asset classes and enables

S U S TA I N A B L E C L I M AT E B O N D F U N D S

clients to:

We launched the State Street Sustainable Climate
Bond Funds in June 2021. These index-based funds
enable investors to manage climate risks in their• Leverage our infrastructure and connectivity tocentralize ESG and portfolio datacore corporate bond holdings, and to increase their
exposure to green bonds and companies aligned withthe transition to net-zero emissions by 2050. The three• Interact with industry leading ESG research foridea generation

funds are specific to the US, eurozone, and global
corporate bond markets, respectively.

• Implement active and passive ESG investment
strategies

The funds help investors reduce their exposure tocarbon emissions and fossil fuels, allocate capital tofund the climate transition and set the direction for
their own climate-based investment goals.

• Analyze portfolios through the lens of industryleading ESG data sets

2021 ESG REPORTIn 2021, the Treasury team increased portfolio tradingwith a diverse group of minority-, women-, and veteranowned counterparties from zero in 2020 to eight dealersin 2021 with $1.1B in trading volumes.

• Provide ESG risk and compliance oversight forinvestment teams

By combining our strategic relationships in the ESG
data field, our research and analytics expertise, andour ability to address client needs throughout the• Measure carbon footprint and carbon intensity,
conduct scenario analysis, and report risk

front, middle, and back office, we have the foundation
to help our clients succeed.

disclosures set by the Task Force on Climaterelated Financial Disclosures (TCFD)
Treasury ESG investment and funding strategies• Address regulatory reporting requirements such

State Street’s Global Treasury team (Treasury),

as the EU-based Sustainable Finance Disclosure

responsible for managing the company’s balance

Regulation (SFDR)

sheet, is increasing its allocation to ESG-labeledbonds in our investment portfolio. These impact-

Through the support of our global team and rigorous

driven portfolio investments further our commitment

risk control environment, our advanced technology

to a more responsible approach to fixed-income

provides our clients with a fully automated, end-

investing as well as provide a favorable credit andto-end experience. State Street Total ESG can beincome profile.

customized to meet our clients’ oversight models andprovide a framework across asset types that can be

Treasury plans to implement an ESG Responsible

configured to specific scoring requirements.

Investing Policy across State Street’s balance sheet in2022 that will govern the on-balance sheet investing
and lending activities.

31

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S TAT E S T R E E T C O R P O R AT I O N$247M
IN IN V E S TMENTS FOR 10 NE W
AFFORDABLE HOUSING AND RENEWABLE
ENERGY PROJECTS IN 2021

ESG LENDING GUIDELINESThis policy will consider how each business unit will

In our securities lending business, we are creatingtake into consideration ESG relevant factors, botha set of ESG guidelines. Such lending can be

negative risk factors and positive attributes, in its

complicated because the proxy voting rights for lentdue diligence and monitoring processes.

securities belong to the borrower, not the lender—
meaning that the lender loses the ability to vote in

In 2021, the Treasury team focused on a number

line with its ESG objectives.

of inclusion, diversity, and equity initiatives, including
bringing on a more diverse underwriter base on

We believe that lenders should focus on how theyissuances. As part of State Street’s commitment

can help borrowers meet their own ESG objectives

to veterans and their families, we collaborated withand provide ways to do so. Our guidelines aim toveteran-owned firms to syndicate a $500 million

work for borrowers and lenders accordingly. Learn

senior debt issuance. State Street also partneredmore from our recent State Street Associates

Black- and Latinx-owned businesses to underwrite

white paper, “Integrating ESG Considerations into

$850 million of subordinated debt, illustrating

Securities Lending: Providing a View of the ESG

ongoing efforts to work with investment firms

Data Landscape and Proposing Best Practices.”

owned by underrepresented groups as part ofour debt offerings.
Municipal financeLooking ahead, a Sustainable Bond Framework

Our municipal finance group provides credit facilities

is being developed in anticipation of future ESG

to help U.S. municipalities and other public-sector

issuances.

entities finance capital improvement projects.
Its clients include state and local governments;
essential service providers like water, sewer, andpower utilities; airports; transportation agencies; andaffordable housing authorities.

2021 ESG REPORTM U N I C IPA L FIN A N C E

In 2021, the group provided issuers with credit enhancement and direct loans to support:

TOTAL DEBT SERVICED BYS TAT E A N D L O C A L G O V E R N M E N T S$3.9 BESSENTIAL SERVICES PROVIDERS$3.0 BT R A N S P O R TAT I O N S E R V I C E S$856 MAIRPORTS$270 M
HOUSING AUTHORITIES$605 M

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S TAT E S T R E E T C O R P O R AT I O N

1,300+

37%

AFFORDABLE HOUSINGCOMMERCI A L RE A L E S TAT E

PROPERTIESLOA NS W I T H A N EN V IRONMEN TA L
CER T IFIC AT ION

The group uses credit enhancement or direct lending

Our Tax-Advantaged Investments (TAI) groupto provide municipalities with cost-effective financing

committed to investments in 10 new affordable

solutions for vital infrastructure improvements that

housing and renewable energy projects totaling $247

serve social and environmental needs.

million in 2021. These included four new affordable
housing funds, three state tax credit purchases,

The municipal finance group evaluates credit

and one new solar power investment, as well as andecisions according to our risk guidelines, which

additional capital commitment to a previous solar

our enterprise risk management team oversees

power investment.

and reviews annually. Credit exposures are subject
to analysis and monitoring for issues including

TAI’s cumulative investments in renewable energy

susceptibility to climate events and naturaland affordable housing, together with State Street

disasters, risk of cyberattacks, ransomware,

co-investors, has led to the development andenergy management (including transition to

construction of over 4.9 gigawatts of renewable wind

renewable energy for power generation), water andand solar energy and the construction of more thanwastewater management, deferred maintenance

1,300 affordable housing properties located in 52 U.S.

of capital assets, cost of legal and regulatory

states and territories.

compliance and strength of governance framework.
Commercial real estateTax-advantaged investments

In 2021, the commercial real estate team developed

Our broad-based commitment to integrating ESG

a climate risk scorecard to assess both physical andgoals and considerations throughout our business

transition risks related to climate change at each

includes support for public investments that benefit

property in our portfolio.

our communities.

2021 ESG REPORTThis scorecard measures climate risk for each

LEED certifications are more concentrated inloan quantitatively, based on the probabilities ofthe office sector (13 of the portfolio’s LEED loans

various weather events, and qualitatively, based on

representing $999 million of loan value involvethe severity of the impact of each event according

offices), while two multifamily loans with $88 million

to a team member’s judgment. The team now

of loan value involve LEED certification. In May 2021,

incorporates this scorecard into its investment

the group issued $75 million to finance a LEED Gold-decision-making process.

certified office tower in Dallas, Texas.

To better understand environmental risk to the

In a further effort to consider environmental risk, theportfolio, the group catalogued property-levelgroup initiated work to estimate the amount of carbon

environmental certifications. Through this effort, theemissions financed by the portfolio. We expect to haveteam identified that 19 of the 51 loans (37 percent) in

a complete estimate of the carbon footprint in 2022.

our $2.59 billion real estate portfolio involve buildings,
representing $1.28 billion in loan values, with someIn addition to the focus on environmentally conscious

sort of environmental certification — six have both

lending, State Street also strives to promote theLeadership in Energy and Environmental Design

availability of affordable housing in the United States.

(LEED) and ENERGY STAR ratings, another nine have

Currently, eight of the portfolio’s 20 loans backed by

LEED ratings, and four others have Energy Star

multi-family properties have a percentage of units

ratings. Of the 15 LEED certified buildings, four arewith an affordable designation. As of March 2022,

LEED Platinum, the highest certification level, whilemore than 4 percent of all apartment units forming

10 are LEED Gold, and one attained LEED-certified

the collateral of a State Street loan are affordable

design and construction.

housing, and we continue to look for lending
opportunities to support this important mission.

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S TAT E S T R E E T C O R P O R AT I O N

ESG considerations have and will continue to serve as

State Street Associates’ partnership

important drivers in the commercial real estate team’s

with Harvard Business School

investment decision-making process. Expecting to

We build lasting relationships with thought leaders

close in mid-2022, the team is working towards its

in academia and look for ways to translate academic

largest direct investment in the portfolio, a $132

theory into business practice. In 2021, State Street

million loan to support a client in their purchase of a

Associates, the research arm of State Street Global

LEED Silver-certified residential property in New York

Markets, continued its partnership with renowned

City with 365 apartments, 73 of which are affordable

ESG professor George Serafeim of Harvard Businesshousing units.

School. Professor Serafeim’s research has been
instrumental in illuminating how ESG issues are
critical drivers of long-term value.

ESG RESEARCH AND
THOUGHT LEADERSHIPThe joint work by Professor Serafeim and State Street
Associates researchers Hui (Stacie) Wang, Bridget

One of our top 2021 ESG goals was to further integrate

Realmuto LaPerla, and Alex Cheema-Fox helpeda cross-divisional approach not only to ESG products

provide practical approaches for our clients to further

and services, but also to our thought leadership for

integrate ESG criteria into investment management.

clients. Thought leadership is critical to our ability

Through its partnership with Professor Serafeim,

to engage with clients and provide timely insight on

State Street Associates continues to build on its

important ESG issues.

initial findings, produce a wide range of ESG thought
leadership and provide clients with actionable insights
across asset classes.

2021 ESG REPORT

2021 ESG research

Going beyond equities, the team presented portfolio

Papers published in leading financial journals inrisk drivers relating to extreme climate events in

2021 included:“Climate Change Vulnerability and Currency Returns.”• “Corporate Resilience and Response to COVID-19” –In addition to the research and publication of thought

An analysis of the systemic relationship between

leadership, in 2021 Professor Serafeim and State

key ESG features and stock returns

Street Associates researchers met with more than
400 clients via roundtables and one-on-one client• “Decarbonizing Everything” – An approach tomeetings with CEOs, CIOs, and senior investment

assessing the efficacy of various climate data inmanagement executives. They also presented

portfolio construction with a goal of improving

to more than 800 clients and prospects globally

both financial and climate outcomesthrough conferences, seminars, fireside chats, ESG
Masterclasses and State Street Associates Summer• “Decarbonization Factors” – An examination of

Session ESG webinars.

investor behavior in relation to low-carbon strategies
The team is actively engaging with clients on insights• “Integrating ESG Considerations into Securities

from their thought leadership. Our researchers offer

Lending” – A review of the ESG data landscape tohigh-value ESG consultative analysis, beta-testing

identify best practices in the application of ESG

relative carbon exposure analysis for client asset

factors to specific financial transactions

allocation, trading, and engagement efforts. On
our Global Markets Insights platform, the group’s

For new insights, Professor Serafeim and State Street

decarbonization factor performance proxies help

Associates researchers Hui (Stacie) Wang and Alex-

investment professionals compare low-carbon

Cheema-Fox identified the drivers of decarbonization

strategies with State Street Associates’ suite ofin equity markets globally in “We’ll Always Have Paris:

proprietary indicators.

How Institutional Exposures to Carbon Emissions
Have Evolved Since 2015.”

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S TAT E S T R E E T C O R P O R AT I O N

2021 ESG REPORT

CLIM ATE CH A NGE

Thanks in part to COP26, climate change and its

The second lens is the portfolio of companies whose

associated risks are now even more front andassets we hold or manage. We help these companies

center in the broader public consciousness. Many

better monitor and manage their impact, as society

companies now recognize an imperative to be partmakes broader efforts toward a lower-carbon future.

of the solution, and we embrace our role in helping
them. At the same time, we want to be an agent ofchange, which requires us to hold ourselves to highOur own operations

standards when it comes to reducing our impact on

In 2021, our resolve to reduce our global operational

the climate.

footprint was further strengthened by theinternational momentum around climate. We worked

Aside from managing the business risks presented

to manage our physical climate-related risks, foundby climate change, we know that our strategy to

new opportunities to review, monitor and reduce

reduce our environmental footprint makes soundour environmental impact, and augmented ourbusiness sense, reduces our cost base, engages oursustainable building design efforts. We also madestaff, and sets an example for our clients and theprogress against our operational sustainability goals,

companies in which we invest.

including continuing to lower our emissions in aneffort to maintain carbon neutrality across Scope 1

As a leading global financial institution and custodyand 2 emissions, as well as reducing our water use

bank, we have a responsibility to consider ourand waste output.

potential environmental impact through two lenses.
The first lens is our own operational activities, which
we monitor regularly. We develop and implement

Managing our potential physical risks

strategies to reduce our energy use, greenhouse gas

Our offices are located in key financial centers of the(GHG) emissions, water use, and waste generation.

world, including some in coastal areas that are under
the increasing threat of major climate events. To
maximize business continuity, we have developed onsite resiliency, backup operations, and sites in otherlocations. In addition, we test our systems and ouroperational sites through regular crisis scenario plans.

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S TAT E S T R E E T C O R P O R AT I O NWorking through the global pandemic

As 2021 was our first full year with COVID-19

This past year, the world continued to navigate theimpacting office occupancy, we saw continued low,

impacts of the global COVID-19 pandemic. Our staff

though artificially deflated, emissions across ourmaintained a hybrid working model, with some still

global footprint. As our occupancy continues to climb

working remotely and others returning to the office.

as more staff work in the office, we will continue toThis added further complications for our property

monitor and manage our footprint, particularly frommanagement and business continuity resources.

a resource and waste perspective.

Thus far, we have managed the ongoing challengesof this global health crisis well, underscoring how

Progress against our operational

important planning is to ensure business continuity

sustainability goals

and operational resiliency through a crisis.

We are committed to a high standard for global
environmental stewardship and as a result haveset aggressive goals and targets to help reduce our

Measuring our environmental impact

environmental impacts.

Management of our environmental footprint happens
in lockstep with oversight of our real estate portfolio,

These goals are reviewed annually by ourthanks to the dedication and commitment of ourEnvironmental Sustainability Committee andglobal realty team. By closely managing our building

Executive Corporate Responsibility Committee toinfrastructure, this team finds opportunities tomake sure we have the appropriate policies andreview, monitor, and reduce our emissions, moving

procedures in place as we work toward achieving

further toward our operational sustainability goals.

our targets.

In line with our reporting requirements, our realWith an emissions reduction of 25 percent in 2021,

estate management efforts use a systematic

we are well-positioned to reach our goal of 27.5

approach to assess our environmental footprint at allpercent carbon reduction tCO2e (metric tons oflocations quarterly, determining whether State Street

carbon dioxide equivalent) in Scope 1 and Scope 2

is in line with expectations and analyzing the impact

emissions by 2030, set with a 2019 baseline. Thisof our mitigation strategies. This is an integral part ofgoal is set using the guidance of the Science Basedour climate risk management and is ingrained in ourTarget initiative’s Well-Below 2ºC scenario.

overall business approach. In addition, State Street
continues to maintain ISO 14001 Environmental

After far surpassing our previous enterprise-wide

Management certification in 18 global offices.

2025 goal (established in 2017) of reducing our water
consumption by 10 percent, we set a new goal of
25 percent absolute water consumption reduction
by 2030 with a 2019 baseline. In 2021, our water
consumption was reduced by 45 percent.

2021 ESG REPORTP R O G R E S S A G A I N S T E N V I R O N M E N TA L G O A L S

45%

86%

GOAL

27.5%

25%

80%

reduction in GHG
emissions by 20301

absolute water
consumption reduction(m3) by 2030

waste recycling
rate by 2025

W AT E R

WASTE

25%

CARBON
1

Scope 1 and 2

41

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S TAT E S T R E E T C O R P O R AT I O N

Our 2025 goal to increase our recycling rate of waste
to 80 percent (65 percent baseline) remained in• A key solar project at one of our buildings in Quincy,
Massachusetts, is under construction.

place, and in 2021, our recycling rate ticked up to 86
percent—achieving this target for the first time. Since• We installed additional car chargers for use by ourwe achieved the goal, we will revisit it in 2022 toemployees in response to the growing demand

determine the appropriate path forward.

from electric vehicles.

Reducing our carbon footprint

Maintaining carbon neutrality

In 2021, State Street moved further toward our goal

In 2021, we maintained carbon neutrality on Scopeof a 27.5 percent absolute GHG reduction by 2030. At

1 (direct emissions) and Scope 2 (indirect emissions

the end of 2021, we achieved a 25 percent reduction

from electricity) through the purchase of renewablein GHG emissions this year compared to our 2019energy certificates (RECs) and carbon offsets. To

baseline, an improved performance given theState Street, carbon neutrality means balancing

impact of the pandemic and greatly reduced energy

our carbon emissions with removal of carbon fromconsumption at our offices. Factoring in the impact

the atmosphere so that our carbon output has aof our low office occupancy rates, this successful

net neutral impact on the environment. In addition,

reduction is due to a combination of programs wethrough our continued careful management and ourhave implemented, including collaborations with key

regular carbon offsets, we retained our position of

stakeholders and technological innovations in certain

being carbon neutral for corporate travel, which weareas, like:have done for several years.

• Our Environmental Sustainability team continued

Reducing our water consumption

to explore energy efficiency initiatives within

In 2021, the company reduced water usage by 45

our buildings that may help the business move

percent compared to the 2019 baseline, exceedingcloser to achieving our energy and GHG emissions

our stated goal of a 25 percent decline by 2030.

targets, including Uninterruptable Power Supply

This is largely due to a significant proportion of our(UPS) optimization and completing additional

employees working from home during the pandemic.

energy audits in Asia which will create further

Reduced occupancy meant a decline in water

opportunities for energy reduction in the future.

consumption on our premises for air conditioning
and cafeteria operations as well as from water• Our global realty team oversaw the reduction offountains and restrooms in our buildings. Our teamenergy impacts in our entire building portfolio,

has created plans to assess water consumption

through improvements like lighting retrofits andand identify future improvement opportunities,

boiler replacements throughout the portfolio.

particularly as we started to see an increase inoccupancy rates.

2021 ESG REPORT

For an improved internal environment, we areManaging printer use

planning a xeriscaping pilot program, landscaping

During 2021, the company implemented a printing

with native plants requiring no irrigation, which will

reduction program throughout the firm, which

be reviewed with the intent to expand xeriscaping

achieved positive results. We limited the amount ofthroughout our buildings in the future.

printing available to staff, with some exemptions, andreduced the number of printers at certain locations.

Reducing waste

This added another layer of data security as various

For the first time in 2021, State Street not only

printers were no longer accessible to our system.

achieved our goal of an 80 percent global waste

Behavior among the staff has changed as a result,

recycling rate, but exceeded it by nearly six percent.

and State Street will be looking to reinforce theWhile total waste volumes are down, we increased

positive shift as people increasingly return to the

our percentage of recycling in large part due to:offices.

• Engaging our workforce through a widespread

Managing single-use plastics

globally aligned campaign in all our offices, with

Pandemic hygiene measures have generated a large

locally consistent messaging and signage andamount of single-use plastic. We need to ensure

popular waste items to maximize effectivenessthat single-use plastics do not become a dominant
waste stream because they pose a significant• Working with our vendors to implement project
management initiatives around recycling

problem for the environment going forward. As more
people return to the offices, we will explore ways ofrevisiting our plans to reduce our reliance on single-• Implementing a program of reusing office furniture,use plastic.

rather than disposing of these items when we exit
locationsS U S TA I N A B L E B U I L D I N G D E S I G N

To reduce our energy demands and footprint andGlobal recycling strategy

boost our broad sustainability credentials, we are

Our company-wide approach to recycling looks atmaking energy efficiency and sustainable building

ways to minimize waste and maximize recycling

design within our building stock a central mandate

through all our buildings, at each stage of theof our environmental sustainability and global realty

waste journey. State Street has developed andteams. Improving energy efficiency of our corporate

implemented education and engagement programs

buildings and data centers remains a driving force ofto generate behavioral change in all our vendors,

our energy reduction strategy.

staff and suppliers to help achieve our waste
recycling rate goal.

43

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S TAT E S T R E E T C O R P O R AT I O N

S O L A R PA N E L S I N Q U I N C YThis includes correct lighting levels, optimum air

One notable effort to reduce energy consumption

circulation, access to outdoor spaces, bike storage

in 2021 was the development of our solar arrayand repair space, high efficiency and filtration

project for one of our few owned facilities, located

HVAC system, as well as maximum natural lightin Quincy, Massachusetts. This effort is aimed atwith a column-free interior.

providing carbon-free power to the facility, anddemonstrates an opportunity to move towards energy
grid independence. The project is currently under

What we do for our clients

construction, expected to launch by early 2023.

COP26 and the soaring interest in and growthof ESG investing have brought climate to the

OUR NEW HEADQUARTERS

forefront for many of our clients. As a leading

Construction for our flagship state-of-the-art future

global investor, State Street believes clients should

headquarters at One Congress Tower in Boston,treat climate change in the same way as any other

Massachusetts continues to follow sustainablesignificant business risk.

building design principles where possible as we work
towards achieving LEED Gold certification when thebuilding is complete. While this certification includes
carbon emissions, energy use and waste reduction
elements, there are elements that also contribute toimproved engagement and wellness for our staff.

2021 ESG REPORTNET ZERO ASSET MANAGERS

It is important that we lead by example. In 2021, State Street
Global Advisors signed on to the Net Zero Asset Managers
initiative to ensure that our portfolios reach net-zero GHG
emissions by 2050 or sooner and set interim targets for 2030.

N AV I G AT I N G T H E T R A N S I T I O N T O N E T Z E R O

We have seen positive responses from companies to

As more companies move toward the goal of net-

our recommendations on improved environmental

zero emissions, their journeys will vary depending

disclosure and better governance of climate-relatedon the nature of their businesses, climate exposure

issues as a result of our interaction, engagement, andand level of emissions. At State Street Global

voting decisions.

Advisors, we help clients navigate their pathways to
net zero. Many businesses will need to innovate in

C L I M AT E R I S K A N D O P P O R T U N I T Y

order to address the impacts of climate change. ThisSERVICE OFFERINGS

transition to net zero poses opportunities for our

As one of the largest custodians in the world, weclients to invest in that innovation. To assist, State

aim to increase awareness of climate risks andStreet has created products for our clients to meet

opportunities for market participants operating intheir climate-specific investment goals.

an era of climate change, and make sense of varying
approaches to climate data to improve portfolio

C L I M AT E - F O C U S E D A S S E T S T E WA R D S H I P

outcomes. We continue to build upon our ESG

The asset stewardship efforts of Global Advisors aim

risk analytics and reporting tools and services toto improve ESG practices in our portfolio companies

deliver critical data needed to help clients meet the

globally, while at the same time promoting sustainable

growing global investor expectations and regulatory

long-term returns.

guidelines around climate disclosures.

45

46

S TAT E S T R E E T C O R P O R AT I O N

To assist clients in addressing climate-related data

E N GAGI N G W I T H H I GH E M I T T I N G C O M PA N I E S

challenges, we improved our ESG risk analytics andState Street Global Advisors released updated

reporting capabilities with our State Street Total ESG

guidance in January 2022 outlining our disclosure

solution. This tool enables clients to measure their

expectations for carbon-intensive sectors. If wecarbon footprint and carbon intensity, as well as toencounter laggards that are not making sufficientreport risk disclosures and assessment of metrics

progress as a result of our engagements, we will

for TCFD.

consider taking action using our votes, either by
supporting relevant shareholder proposals or

Our recently launched strategic ESG engagement withvoting against directors at an upcoming shareholder

S&P Global TruCost will also help market participants

meeting.

manage and report on climate and other ESG impacts,
by delivering and integrating critical climate data

State Street Global Advisors is a signatory to theintelligence into decision making and reporting.

Net Zero Asset Managers initiative, reflecting ourcommitment as long-term stewards of capitalto help companies effectively plan for the low-

What is ahead in 2022

carbon transition. In the coming year, State Street
Global Advisors will launch a targeted engagement

TA S K F O R C E O N C L I M AT E - R E L AT E D

campaign with the most significant emitters in our

FINANCIAL DISCLOSURES

portfolio to encourage disclosure aligned with ourA growing number of Fortune 500 companies are

expectations for climate transition plans.

responding to the investor-led recommendationsof the Task Force on Climate-related Financial

These plans cover 10 areas, including

Disclosures (TCFD), which has become a widely

decarbonization strategy, capital allocation, climate

accepted framework for companies to assess andgovernance, and climate policy. In 2023, we will holdreport on climate risk.

companies and directors accountable for failing tomeet these expectations.

In January 2022, State Street Global Advisors
announced our expectation for all companies in our
portfolios to offer public disclosures in accordancewith the four pillars of the TCFD framework:
Governance, Strategy, Risk Management, and Metrics
and Targets. Starting in the 2022 proxy season, we
will begin taking voting action against directors
at portfolio companies in major indices in the US,
Canada, UK, Europe and Australia that fail to alignwith climate-related disclosures requested by TCFD.

2021 ESG REPORT

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S TAT E S T R E E T C O R P O R AT I O N

2021 ESG REPORTINCLUSION, DI V ERSIT Y,
A ND EQUIT Y

At State Street, we believe that our differences

More must be done, of course, and our

make us stronger — which is why inclusion, diversity,

comprehensive approach goes beyond race andand equity (IDE) remain a key focus in all areas ofgender. We will continue to use our voice and ourour business.

vote to advocate that boards and workforces reflect a
broader universe of diversity.

As a global organization and a leader in the financial
industry, State Street has both the opportunity andOur commitment also means looking at our own

the responsibility to actively promote positive change

business. In 2020, to assess equity within thein the IDE space. Fostering an environment thatorganization, we began work on a deep analysis

encourages authenticity, empowerment, and a senseof our policies, procedures, culture, and use ofof belonging among our employees is essential to ourlanguage. In 2021, we created a new role of vicesuccess, both internally and with our clients.

president of equity to provide an equity lens toinitiatives and programs across State Street

We are cultivating a global force of leaders who reflect

while leading the development and implementation

the diverse markets we serve by educating, inspiring,of strategies to build greater equity related toand empowering our employees at every level.

human capital and business practices, services,and products.

As we focus on actively driving progress toward
greater equity and social justice within our business,
we encourage our clients to do the same.
One example is our Fearless Girl campaign,developed to draw attention to a simple truth: thatcompanies with more diverse boards performbetter. We have advocated for companies to appoint
more women to their boards since we launched thecampaign in 2017.

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S TAT E S T R E E T C O R P O R AT I O N

INCLUSION EMPLOYEE SURVEY

We continue to integrate key learnings in pursuit ofour diversity goals, as we did in 2021:

The results of a 2021 internal survey make it clearthat even as our employees give us high marks on• Our business strategy and talent acquisition

many IDE metrics, we still have a long way to go.

teams are actively seeking to attract and retain

Based on the survey’s responses:

diverse talent• We need to be an even more inclusive workplace.

• We are enhancing and globally aligning our

Inclusiveness is strong in some parts of thecompanywide requirement that hiring managers

organization, but not nearly enough. We must be

interview a diverse slate of candidates — which wemore consistent and do better

introduced in 2015

• We must redouble our efforts to ensure that all• We are improving participation in inclusive

employees feel like they can achieve their career

leadership training for managers and implementing

goals at State Street

systems to ensure that managers at all levels areaccountable for diversity goals• We must strive for everyone to have a sense of
belonging in our workplace• Senior leadership is helping to advance an ongoing
global self-identification campaign to bettermeasure performance and track our progressO U R I N C L U S I O N , D I V E R S I T Y,
AND EQUITY GOALSTA K I N G A C T I O N F O R C H A N G E
We remain committed to meeting the five-year
diversity goals for 2022 that we set in 2017. While we

Our efforts to address racism and inequality at State

made progress toward all of these goals year-over-Street and beyond are guided by our comprehensive

year, there is still work to be done to achieve them.

action plan, 10 Actions to Address Racism andInequality, launched in mid-2020 and designed to

To learn more about the composition of State Street’s

promote and improve racial equity in our company,

board of directors, see Board Diversity.

industry and society.
We are supporting the plan with development
and advancement programs, governance models,
community outreach, partnerships, industry
collaborations, and philanthropic investments.
At the same time, we are actively bolstering our
supplier diversity programs.

2021 ESG REPORT

2021 D I V E R S I T Y G OA L S

GLOBAL FEMALE EMPLOYEES

2020

2021

Percent Change

5-Year Goal

SVP+

30.1%

32.4%

+2.3%

36%

MD

32.1%

30.9%

-1.2%

37%

VP

32.2%

31.9%

-0.4%

38%

AVP

40.0%

40.2%

+0.2%

44%

2020

2021

Percent Change

5-Year Goal

SVP+

13.8%

15.8%

+2.0%

22%

MD

19.3%

20.3%

+1.0%

22%

VP

29.9%

31.2%

+1.3%

33%

AVP

34%

34.8%

+0.8%

35%

US EMPLOYEES OF COLOR

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S TAT E S T R E E T C O R P O R AT I O N

DIVERSIT Y OF GOVERNANCE BODIES AND EMPLOYEES

MaleFemale

BOARD

1

70%
30%

SENIOR MANAGEMENT(EVP and SVP/SMD)

67%

MANAGEMENT(MD, VP, and AVP)64%

ALL OTHER(Officer and Associate)49%

As of April 20, 2022

33%

36%

51%

2021 ESG REPORTThe State Street board backs our commitment.

In 2021, we made progress on improving

Our efforts are overseen by 10 employee

representation of Black and Latinx employees

workstreams led by executive sponsors at thein leadership roles. In addition, we instituted

Management Committee level. The workstreams

policies to hold senior leadership accountable

tap into our passionate volunteer community tofor diversity goals via pay decisions andhelp ensure that we deliver on our promises

updated global definitions relating to our diverseand hold ourselves accountable.

candidate requirement.

53

2. Sharpen focus on Black and Latinx

Part of our challenge is to engage every segmentof our workforce and embed IDE into our everyday

talent development

decision-making. To boost accountability, we have

We are examining all of our efforts to improveadded IDE considerations to performance goals forthe mobility and development of Black and Latinx

all managers. At their annual evaluations, leaders

professionals. In 2021, we leveraged partnerships

must demonstrate what they have done both toand programs to drive career and personal

improve representation of women and individuals

development for Black and Latinx employees;

from racially diverse backgrounds, and to drive more

required an IDE performance goal for all managers

inclusive and equitable outcomes for all.

that we also recommend for all employees; andlaunched mentorship and sponsorship pilot
programs in major business areas to measure

Our 10 Actions to Address Racism and Inequality

outcomes and outline best practices.

In 2021 — the first full year with our 10 Actions plan —3. Conduct anti-racism conversations and training

we made significant progress toward each of our goals.

In 2021, 99 percent of our employees completed
1. Improve Black and Latinx employee

unconscious bias training, business leaders led

1

representation

anti-racism sessions across our company, and we

Our objectives are to triple the number of Blackco-founded the public Justice, Equity, & Inclusionand Latinx leaders (senior vice presidents andSeries workshops to support the development ofabove) within State Street, double our Black andanti-racism skills. In addition to providing learning

Latinx employee population (on a percentage

opportunities and conversations around anti-

basis) over the next three years, and extend theracism and equity to our entire workforce, we are

requirement of a diverse slate of candidates formaking these approaches and programs available

positions at all levels.

to clients.

1

Black and Latinx, US only; Black, Asian, and Minority Ethnic (B.A.M.E.), globally

54

S TAT E S T R E E T C O R P O R AT I O N

4. Implement IDE practices for management

7. Leverage State Street Global Advisors’committees

asset stewardship efforts

We systematically review key management

In 2021, State Street Global Advisors called oncommittee governance models to help ensurecompanies to disclose more detail on board andinclusion and diverse representation. In 2021,

workforce diversity; focused stewardship efforts

we developed a toolkit for senior managementon racial and ethnic diversity; and partneredcommittee chairs to discuss inclusive behaviors

with Russell Reynolds Associates and the Fordand actions, launched a baseline survey toFoundation to report on best practices andmeasure effective governance, amplified culture

develop a playbook for effective oversight of IDE.

traits and promoted overall inclusion andTo learn more, read the resulting white paper,

diversity within each committee.

“The Board’s Oversight of Racial and Ethnic
Diversity, Equity, and Inclusion.”

5. Increase spend with Black and Latinx suppliers
We aim to help strengthen Black- and Latinx-

8. Improve Black and Latinx representation

owned businesses by increasing our spend withacross our industry

diverse suppliers over the next three years. For

We are leading an effort to attract and advance

example, in 2021 we launched a supplier diversity

more Black and Latinx professionals in the asset

website to drive broader participation and issued

management industry. In 2021, we formalized$850 million subordinated bonds using an

partnerships with four organizations to provide

underwriting syndicate equally composed of banks

underrepresented groups with career exploration,

and Black- and Latinx-owned businesses. We

IDE best practices, and opportunities forsurpassed our first-year goal, increasing our spend

employment and professional development.

with diverse suppliers by 43 percent.
9. Establish combating racism as a priority
6. Improve Black and Latinx board representationfor State Street Foundation

We are committed to working with our board of

We intend to make combating racism a top

directors to expand its diversity efforts and add

priority alongside education and workforce

Black and Latinx directors within 18 months. In

development, and to reprioritize State Street

2021, John Rhea and Julio Portalatin joined ourFoundation spending accordingly. Our delivery

board — racial diversity among our directors isof over $2 million in grants to organizations

now 23 percent . We also added the diversity slate

specifically focused on racial equity and social

interview requirement to the board’s charter.

justice (RESJ) supported this effort, as well as an

1

update of our grantmaking guidelines to betterreflect RESJ values.

1

As of April 20, 2022

2021 ESG REPORTWe also offered to double employees’ donations

More than 10,000 conference attendees participatedto certain organizations focused on addressing

in six workshops. One of these was Brave Dialogues,

racial equity issues and increased our employee

in which industry leaders shared best practices andtime-off policy for volunteer work with non-lessons about creating compassionate, safe spaces

partisan, non-profit organizations to four days

that enable participants to truly listen and encourage

from two.

open, honest dialogue.

10. Increase civic engagement and reflection

As noted in No. 3 of our 10 Actions, we require

To make June 19 (Juneteenth) a day of reflection

unconscious bias awareness training for all employees

and service, we provided World Anti-Racism

globally. Currently, 99 percent of all employees have

Reflection Moments for employees and families

completed the training, which business leaders acrossthrough monthly global opportunities forthe company have reinforced by holding ongoingreflection and community service, as well as foranti-racism sessions. We also provide managers withengagement on anti-racism and social justiceunconscious bias awareness conversation guides toissues. In June 2021, we launched a 21-day racial

help them lead more effective discussions.

equity and social justice challenge — a collectionof short daily lessons — culminating with a weekof community service actions in honor of Race

IDE educational programs

Unity Day and Juneteenth.

Other important programs that support ourinternal IDE efforts include online webinars andlive diversity awareness training and workshops.

C H A L L E N G I N G O U R S E LV E S

The Degreed platform, for example, offers various

AND OUR ASSUMPTIONS

distinct learning “pathways” that present relevant
assets, interesting engagement events andWe encourage employees at every level toopportunities for reflection. We frequently update

participate in difficult and often uncomfortable

pathways with new assets and material to foster an

discussions about race and equality. These

environment of continuous learning.

conversations raise awareness of important
issues while positively challenging some of our

Other recent educational initiatives include theestablished systems, processes and procedures.

Skip Level Mentorship Program first piloted in our

Our efforts to engage in dialogue about raceCharles River Development and Alpha organization.

and equality extend beyond our own organization

This program invited all junior Black and Latinx

as well. In 2021 — for the 15th year — we partnered

employees within the organization to participate,with the Massachusetts Conference for Women,

then paired them with more senior mentors,

an organization that promotes, communicates,

providing the opportunity to develop presentation

and amplifies the influence of women in theand networking skills toward a goal of helping

workplace and beyond.

employees grow their careers.

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S TAT E S T R E E T C O R P O R AT I O N

At the end of the program, 11 out of the 40

IDE partnerships

participants were promoted, with an additional three

While there is much we can do as one organization,

taking lateral moves. We are looking for ways to

we can make more progress by magnifying our

extend or recreate this program in other parts ofstrength in partnership with others.

the company, as well as the Diversity Mentorship
Program developed by our sales leadership team

M LT 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

to introduce and educate employees about client-

In 2021, alongside more than 35 leading

facing sales and relationship management roles.

organizations, we became part of the Management

Historically, these important roles have not been

Leadership for Tomorrow (MLT) initiative, a results-

diverse and can be hard to attain without specificdriven certification program to address theprior experience. About 30 employees participated inpersistent inequities faced by Black professionals.

the initial program.
Certification requires employers to apply the same
approach to Black equity as they do to other core
Employee networks

business priorities.

Better connections strengthen IDE and drive deeper
understanding across our business. Our 24 global

We understand the social challenges and inequities

employee networks with 110 chapters worldwide

facing Black Americans in wealth, income, healthprovide opportunities for colleagues to learn aboutoutcomes, and more. Our participation in theeach other’s cultures, facilitate opportunities for

MLT Black Equity at Work Certification is another

employees to volunteer and develop their careers,significant step toward advancing measurable,celebrate the values that unite us, and advance asustained progress in each of the core certification

culture of belonging and inclusion.

focus areas:

More than 50 executive sponsors support these• Black representation at every level of the

networks, which are established and run byorganization

employee volunteers. See the full list of State• Compensation equity

Street employee networks in the [GRI Index]. Our• Inclusive, anti-racist work environment

employee networks host and collaborate on a variety• Racially just business practicesof activities that are guided by the “4C model” of• Racial justice contributions and investments

making an impact on culture, career, commerceand community. The Black Professional Group, for

These five areas align with our 10 Actions andinstance, partnered with our Professional Women’s

provide us with a road map to continue our work to

Network to create Her Voice, a powerful video that

address racism and inequality in the workplace andshowcased the experiences of African Americans,our communities.

Indigenous people, and people of color more broadly.

2021 ESG REPORT

Corporate Call to Action: Coalition

Professional development partnerships

for Equity & Opportunity

To drive diversity across the company and theAlong with other US-based members of thefinancial industry, we partnered in 2021 with

Corporate Call to Action: Coalition for Equity

four organizations that are helping to provide& Opportunity, we have published our EEO-1 racial

career exploration and professional development

diversity data in the Appendix and on our website.

opportunities:

We stand by our commitment to confront longstanding racial and economic disparities in financial• A Better Chance, Inc., a nonprofit organization

services and address their impact on the nation’sthat recruits, trains and procures scholarships

economy.

for academically talented students fromunderrepresented communities to attend leading
independent US preparatory schools

CEO Action for Racial Equity
State Street has joined approximately 150 companies• National Association of Securities Professionals,

in supporting the CEO Action for Racial Equity, aa trade association whose goal is to educate

fellowship dedicated to advancing racial equity

and advocate for women and minorities in thethrough public policy. This working group represents

securities industry

more than 725,000 employees, $1 trillion in market
capitalization, and approximately $26 trillion in
assets under management.

• The Toigo Foundation, a leadership platform that
identifies, develops, and promotes exceptional
diverse finance leaders through its MBA Fellowship
Program

30% ClubWe are members of the 30% Club, a global campaign• Association of Luxembourg Fund Industry,that advocates for greater female representationa trade association that hosts conferences andon company boards and at the C-suite level in theforums to share best practices on IDE and provides

world’s largest companies.

scholarships and internships to underrepresented
talent in asset management

Boston Women’s Workforce Council (BWWC)
100% Talent Compact
As signatories to the BWWC’s 100% Talent Compact,
we have pledged to take concrete, measurable steps
to eliminate gender and racial wage gaps in Greater
Boston. This pledge includes examining our salarydata and practices.

A full list of partnerships is available on our website.

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S TAT E S T R E E T C O R P O R AT I O N

Our year-over-year mean pay

GENDER EQUALITY

gap in the United Kingdom (UK)improved by 0.1% and 4.4% forState Street overall and Global

A significant part of our commitment to inclusion,
diversity, and equity is striving to close the earnings
gap between men and women. We actively support

Advisors respectively, butequal pay for equal work, closely monitor our pay

increased by 1.7% for SSBT.

decisions and aim for continuous improvementby training our managers to make appropriatecompensation awards.

Our year-over-year UK mean

We acknowledge we have more work to do in thisbonus gap improved by 5.9%

regard, but we believe transparency about ourfor State Street overall, 4.3%
for SSBT, and 6.7% for Global
Advisors.

current state is an important step toward being
accountable and making progress.
We look at gender pay data from our UK business,
which we are required to publicly disclose, coveringboth State Street Bank and Trust Company London
Branch (SSBT) and State Street Global Advisors (UK)The UK median pay gaps forState Street overall, SSBT and

Limited. We also report our UK pay gap numbers inaggregate as “State Street overall.”Global Advisors increased

A significant determinant of this gap is the imbalanceby 0.3%, 1.2%, and 7.4%

in female representation, particularly at the highest

respectively.

pay levels. Furthermore, the median pay gap forState Street Global Advisors increased primarily
due to the attrition of more highly paid females. The
median pay gap for the legacy/baseline State Street
Global Advisors population is flat year-over-year.
Across all three reporting categories, the key driverfor our gender pay gap continues to be a lower
representation of women in both senior roles andhigher-paying roles.

2021 ESG REPORT

Making progress

We plan to have broader gender pay gap disclosures

Gender pay equity is a continued area of focus forbeyond our UK data shared here, and will link thatus company-wide, and we take concrete measuresfrom www.statestreet.com/cr when it is available.

to improve our performance in gender pay equity
and female participation. These efforts include
setting strong diversity goals and recruiting more

Enhancing supplier diversity

women across all levels of the organization. We

State Street is committed to expanding diversity

also have diverse recruiting panels, avoid asking

among our suppliers and promoting engagement withfor compensation history, and have structured

suppliers owned by minorities, women, veterans, andmentoring, training, and development programs formembers of the LGBTQ+ and disability communities.

women. Additionally, through our Talent Marketplace

We strive to create more opportunities for diverse

launched in 2020, we are driving greater diversity

suppliers and assist them in growing their businesses.

through all levels of the company.

The goal of our supplier diversity program is
to increase the impact of supplier diversity by

We participate in various initiatives to achieve

encouraging our prime suppliers1 to procureindustry inclusion and improve gender equity insidefrom diverse businesses. The program enables

and outside State Street:businesses to certify ownership in a range ofcategories: minority-owned business enterprises,• We are a proud member of the UK 30% Club working

women-owned business enterprises, veteran-to achieve greater representation of women on

owned business enterprises, disabled-owned

FTSE-100 boards. Our employees have taken partbusiness enterprises, and LGBTQ+-owned businessin the 30% Club Mentoring Scheme as both mentors

enterprises.

and mentees for eight consecutive years.
In 2021, the program increased Tier 1 diversity spend• We support the UK Diversity Project, an initiative

to $186 million, a 43 percent gain from 2020. Black-that aims to accelerate progress toward building an

and Latinx-owned businesses accounted for 10.9

inclusive culture in the industry through initiatives

percent of our annual US and UK diverse suppliersuch as the Returners Program, Talk about Black

spend, and women-owned businesses comprisedand LGBT Great.

3.2 percent. We successfully implemented a Tier 2
diverse spend program that yielded over $38 millionof additional diverse spend for 2021.

• For the fifth consecutive year, we were a signatory
to the Women in Finance Charter.

Building on the success of internal programs,
processes, and procedures in 2020, in 2021 we• To help champion the positive impact of talented
Black women on the industry, we are a member ofmaintained our deliberate efforts to increase theBlack Women in Asset Management.

diversity of our supplier base.
1

State Street defines “diverse suppliers” as organizations that are at least
51% owned and controlled by an individual or group that falls within thesediversity categories.

59

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S TAT E S T R E E T C O R P O R AT I O N

In 2021, for the sixth consecutive year, we were included in the
Bloomberg Gender-Equality Index (GEI) due to our efforts tofoster a more inclusive and equitable workplace. State Street
leaders were also featured on Yahoo Finance HERoes Women
Role Model lists.

One example, also shared elsewhere in the report,

Expanding our procurement diversity efforts further,is our Global Treasury unit establishing trading

State Street partnered with Amazon Business to makerelationships with eight minority-owned firms,

purchases with diverse suppliers easier by prioritizing

completing trades totaling $1.1 billion. In 2021,

diverse suppliers in the suggested search terms.

State Street partnered with Black- and Latinx-owned
businesses to underwrite $850 million of

In 2021, we maintained our memberships with asubordinated debt.

number of organizations, notably the Greater New
England Minority Supplier Development Council,

We enhanced our procurement processes by

the Boston Chamber of Commerce Pacesetter

including diversity criteria in every request for

program and the Minority Supplier Development

proposal and mandating review of each bid invite list

UK in Europe. These organizations leverage theto see that it is inclusive of diverse companies. To

collective purchasing power of their members toassist business units with finding diverse vendors forscale opportunities for local ethnic- and minority-

their sourcing opportunities, we curated an internal

owned businesses.

catalog of diverse business enterprises that meet
our procurement standards. We also partnered with

Our supplier diversity team’s accomplishments

a leading technology company to procure a diverse

in 2021 would not have been possible without thevendor search tool that is significantly enhancing

resources and support of the 10 Actions to Address

our efforts to incorporate more diverse suppliers toRacism and Inequality, which increased thecompete for State Street business opportunities.

program’s pace of development.

2021 ESG REPORTIn addition to deploying the program’s cadre of

LOOKING AHEAD

volunteers, we hired a head of Supplier Diversity to

We will continue to challenge ourselves to deliver

manage the team and drive key supplier diversity

on our ambitious IDE goals, adding new objectives

program development and activity.

as we progress. In 2022, we will undergo a civil rights
audit that will help us further accelerate the pace

IDE INVESTMENTS

of change. The audit will provide an independent,

In 2021, we continued to invest in the New

systematic examination of any significant civil rights

Commonwealth Racial Equity and Social Justice Fundand racial equity issues relating to our organization(NCF), launched in 2020 and co-founded by Stateand establish a plan of action to address thoseStreet Chief Diversity Officer Paul Francisco, who

issues in a thorough, deliberate, timely, andserves on the NCF Executive Committee. NCF is atransparent manner.

coalition of Black and Brown executives that strives
to provide essential support and resources to help

Going forward, we will continue to drive tangible

uncover and dismantle racial inequities in Boston andprogress on our 10 Actions plan and to embed IDE

across Massachusetts. Our commitment to NCF is inconcepts and processes throughout our organization.

addition to our investment in the Latino Equity Fund.

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S TAT E S T R E E T C O R P O R AT I O N

2021 ESG REPORTEMPLOY EE
E X PERIENCE

When employees are engaged, supported, and feel

We also seek to create an environment where

valued, everyone benefits. Employees are able toemployees can not only thrive professionally, but doreach their full potential, employers retain their

so in a way where stress and work/life balance are

best talent and client service is at its best. The

significant considerations. Given the challenges anddesire to create this optimal work environment has

stressors many of our employees faced over the last

been consistent for years at State Street. Over thetwo years, creating a supportive environment forpast two years, however, we have experienced aour people was particularly relevant. This is why wesignificant shift in how we achieve it.

remain focused on promoting employee wellbeing
through our benefits, wellness initiatives, flexible

Most notably, employees are increasingly driven

work models, and more.

by a greater sense of personal and professional
purpose, particularly in the wake of COVID-19 andthe racial and social justice movement. Because

C U LT I VAT I N G Aof this, it remains critical that employees can

S U P P O R T I V E C U LT U R E

connect — personally and professionally — withthe core values of their employers. To achieve

State Street is dedicated to embedding a supportive

this connection, we know we must provide aculture for all employees throughout the organization —supportive and inclusive culture, effective internala culture that reinforces a sense of connection andcommunications, intentional learning, andcaring — for our colleagues, our clients, and theopportunities for development and engagement.

communities in which we operate. We believe astrong, positive culture is critical for achieving ourbusiness outcomes and a key way of connecting ourpeople to a greater sense of purpose.

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S TAT E S T R E E T C O R P O R AT I O N

We create this environment by employing a behavior-This effort is paying off. In the results of a recent

based approach, focusing on amplifying thesurvey open to all State Street employees, 80

desired behaviors associated with our five culture

percent of respondents agreed or strongly agreed

traits — Choose to Own It, Break Through Silos,that State Street is committed to providing equal

Deliver Results with Integrity and Speed, Do Better

opportunity for all employees and 81 percent

Every Day, and Care for Our Colleagues, Clientsbelieved State Street has a climate in which diverse

and Community — and continually highlighting theperspectives are valued — scores significantly above

moments where our employees have brought theseexternal benchmarks.

traits to life.
A C U LT U R E T H AT VA L U E S L E A R N I N G
FOSTERING AN INCLUSIVE, DIVERSEA N D A D VA N C E M E N T

A N D E Q U I TA B L E C U LT U R E

We prioritize investing in our employees throughEmbedded within each culture trait is oura variety of development and training initiatives

commitment to inclusion, diversity and equity. We

throughout the year aimed at helping them work

seek to be a place where all employees feel they

toward professional goals, such as developing new

belong and are understood and valued for theirskills, growing their careers within the company, andunique contributions. Our ongoing focus on racial

realizing their sense of purpose.

and gender equality helps broaden perspectives,demonstrate best practices and nurture our teams.

Our Talent Marketplace is the organization’s
innovative approach to talent management andAs part of our 10 Actions to Address Racism andinternal mobility, allowing employees to access

Inequality, we have set goals to improve Black andnew roles, skills, and opportunities while achieving

Latinx employee representation, sharpen our focus

greater diversity at all levels. Employees may

on Black and Latinx talent development, and expand

establish career profiles to express their skills andupon our anti-racism conversations and training.

experience as they explore internal job opportunities.

These goals are a smaller subset of our broader

Last year, we saw more than 2,500 employees

diversity goals, addressed in Inclusion, Diversity,

indicate they are open to new career opportunities.

and Equity.

Additionally, we offer an expansive internal learning1

platform – Degreed – to all employees, as well as
Several core concepts of our learning strategy are

mentorship programs, and several professional

education about unconscious bias, respect in thedevelopment initiatives for recent college graduates,

workplace, inclusive interviewing, leading inclusively,

and mid-career professionals.

managing micro-behaviors, and anti-racism training.
We launched a learning pathway on our learning
platform on equity for all employees to help themdevelop their understanding of equity and how it
plays out in business.

1

Black and Latinx, US only; Black, Asian, and Minority Ethnic (B.A.ME), globally2021 ESG REPORTS TAT E S T R E E T C U LT U R E T R A I T S

OUR ASPIRATIONAL CULTURE TRAITS:
THE “WHAT”

OUR ENTERPRISE-WIDE BEHAVIORS:
THE “HOW”

Guideposts for how we link strategy andvalues to day-by-day behaviors

What everyone can do to deliveron State Street’s strategy

CHOOSE TO

to deliver business

Take the initiative
OWN IT

BREAK
THROUGH

objectives

Collaborate acrossteams to reach our

SILOSshared goals

DELIVER RESULTS

clients, employees,

WITH INTEGRITY
AND SPEEDDO BETTER
EVERY DAY

Drive outcomes forand shareholders while
managing risk

Seek better ways
of working and adopt
new solutions

CARE FOR OUR
COLLEAGUES,
CLIENTS, AND
COMMUNITY

Help others
to succeed

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S TAT E S T R E E T C O R P O R AT I O N

Employee Engagement

leadership has multiple touch points to listen,In the initial stages of the pandemic, our employees

understand employees’ experiences, and take action

were dispersed with limited in-person interaction.

to support them.

At this time, senior leadership recognized theimportance of communicating with employees

EMPLOYEE SURVEYS

around the world, ensuring that they felt supported

Surveys are an important communication tool toand engaged, and that State Street was promoting

help State Street better gauge overall employee

physical and mental well-being. Senior leaders

experience and satisfaction, and our employees

worked to be transparent about our plans and goals

are encouraged to share feedback by completingfor how the company intended to support employees

regular employee surveys. While our 2020 surveys

both at work and at home. We see this regular, open

were centered on COVID-19, our 2021 surveys werecommunication as a legacy of the pandemic, andmore focused on other important issues for ouran area of focus that will stay with us, even as thestaff, particularly well-being, culture, and employee

impacts of COVID-19 dissipate.

engagement. In 2021, we executed three surveys toensure we checked in regularly with our employees.

Our employees also needed to be able to reach out
to let their managers know how they were and what

We have found it critical to survey our employees

they needed. To facilitate this interaction and address

globally to give them a place to voice their opinions

the inability to connect face-to-face, our leaders heldand concerns. Among the key findings were:regular weekly and sometimes biweekly employee
calls. To set an example for employees to encourage• Managers treat their employees with respect,them to take time for themselves and their families,

provide timely feedback and make our employees

senior leaders shared their personal stories of taking

feel valued

time for what is important, maintaining work/lifebalance, and staying mindful. The response from our• Our commitment to risk excellence, including acting

staff to these conversations was phenomenal, with

with integrity and fostering an environment where

employees expressing appreciation for the direct andemployees can speak up, continues to be an area ofconsistent management contact.

strengthAs employees continue to work from home and• While several business lines and teams have beencommunicate virtually in our hybrid working model,

successful in creating a positive culture and high

we intend for that practice of intentional, consistentengagement, engagement levels gradually declined

employee interaction and connectivity to remain.

compared to 2020 at the height of the pandemic, a

By continuing to leverage preexisting tools such as

period when the company amplified engagement inteam calls, one-on-one meetings with management,a concerted effort to support employees through aand surveys, among other engagements, ourtime of crisis

2021 ESG REPORT

Throughout the year, we hosted two Thank You weeks — highly
publicized weeks where employees were particularly encouraged
to thank a colleague. Of the 115,600 recognition moments throughout
the year, over 56,000 occurred during the two Thank You weeks,
illustrating the many contributions worth noting when employees
are encouraged to thank each other.

EMPLOYEE NET WORKSB R AV O E M P L OY E E R E C O G N I T I O NState Street empowers our employees to bring2021 was our first full year of implementing ourtheir whole selves to work. One way we do this is by

global peer reward and recognition program, Bravo.

providing opportunities and forums for employees

Launched in 2020, Bravo encourages employees toto engage in dialogue with one another aroundrecognize their colleagues for good work, a goodshared experiences, values, and cultures that

deed, or a good idea — anything that reflects ourunite them, to learn from one another and to build

State Street culture traits.

community – an effort that began pre-pandemic but
continued remotely.

This program has been extremely popular among
and meaningful to employees, who enjoy spotlighting

At State Street, we support 24 employee networks

the work and contributions that make their teamwith more than 110 chapters across the globe

members stand out and broadcasting them to every

that provide in-house networking, mentorship,corner of State Street around the world. Highlighting

career development, and training opportunities

stories of employees helping others or setting afor participants, as well as the chance to partake

good example also has the positive side effect ofin cultural experiences centered around eachinspiring others to uphold our culture traits and findnetwork’s unique interests and goals. Our networks

new ways to support each other, both professionallyare sponsored by senior executives, but managed

and personally.

by volunteer employees. Each network follows the
4C model, organizing activities and impact into one
of four categories: culture, career, commerce, andcommunity. The full list of employee networks isavailable in our [GRI Index].

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S TAT E S T R E E T C O R P O R AT I O NState Street offers a global Employee Assistance
Program (EAP) to support the mental health andwell-being of our employees. This service is free,
confidential, and available 24/7.

In reviewing Bravo stories about employees that

Learn more about how we encourage our employees

are associated with our culture trait “care for our

to engage with the communities in which we live andcolleagues, clients, and community,” we are inspired

work in Corporate Citizenship.

to elevate our thinking about how we can be betterin everything we do. This helps employees inspire
one another, and shows the breadth and depth of the

Supporting employee health and well-being

good people at State Street.

The health and well-being of all State Street
employees is of paramount importance to the

COMMUNITY ENGAGEMENT

success of our business. Our definition of well-being

In the wake of COVID-19 over the past year,

is broad, encompassing health, wellness, leave time,

we recognized that adjusting to a new way offlexibility, and hybrid work, demonstrating our efforts

working also meant transitioning to a new way

to support our employees in a holistic way.

of volunteering. Our commitment to giving backthrough global employee volunteerism, matching

In 2021, the pandemic continued to bring employee

gift opportunities, and more, is one of the ways that

health and well-being into sharper focus for the

we engage and give employees a sense of purpose

organization. The past year has seen senior leadersand pride in working at State Street. As a result, we

take an active role in promoting well-being, leading

strategically modified our volunteer opportunities

by example by demonstrating the importance of

to offer more virtual volunteer activities. We arework/life balance, mindfulness, and taking time off.

committed to continuing these initiatives in our
ongoing quest to be good global citizens.

2021 ESG REPORT

Remote work was very prevalent for a majority of global
employees in 2021, with 78% indicating they were working
fully remotely and 17% working a hybrid schedule asindicated in an employee survey in early 2021.

We continued to provide a host of resources

Flexible work also bolsters our business continuity

and services to help our employees maintainefforts and space utilization. We know that givinga healthy work/life balance. We offer tailored

employees greater flexibility in their work hours,

benefits packages to our employees based on theirlocation, and space, when possible, improves

geographic location, as well as well-being andproductivity, happiness, and health, while also

flexible benefit programs.

cultivating trust and loyalty. Our flexible work
culture is aligned with our core values, and as more

Our BeWell Program offers employees a variety of

employees continue to come back to work in our

resources and tools to help manage their physical,

facilities around the globe, we will remain committed

emotional, and financial wellness. The benefits vary

to finding ways to protect their health and well-being.

from country to country, but may include tuition
assistance, fitness reimbursements, and online

In 2021, we developed a framework for State Street’swellness programs. We also sponsor “healthy

hybrid approach that optimizes the benefits of bothchallenges” to create enthusiasm, where participants

work-from-office and work-from-home models. We

can earn rewards such as additional paid days off.

also launched efforts to review and evolve our Flex
Work policies, processes, and governance, to ensure

FLEXIBLE WORK

these are aligned to the company’s workplace of the

Nearly two decades ago, State Street integrated

future plans. This resulted in the development of aflexible work arrangements into its corporate

resource hub to provide easy access to the tools,

culture. This approach has repeatedly proved toresources and guides designed to help employees

optimize employee engagement, talent retention

and managers successfully adapt to hybrid work,and recruiting efforts over the past years as well as

including health and safety protocols across global

throughout the COVID-19 pandemic.

locations, technology information, and dedicatedsections for remote and in-office workers.

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S TAT E S T R E E T C O R P O R AT I O NS U P P O R T I N G WO R K I N G PA R E N T S
A N D C A R E TA K E R S

State Street is committed to attracting andOur flexible work culture includes a focus onretaining the industry’s top talent by supporting

providing employees with the proper parental

our employees’ continued progress and success.

and caregiver support they need. This has been

We do that through our robust recruitment processespecially critical over the past two years of theand development programs, and empowering ourpandemic, with many balancing their work with

employees to grow professionally and personallythe challenges of remote schooling, protecting

through training opportunities and employee-runfamily members from illness, and addressing

programs. From the top down, our leadership ismental health struggles. We offer child, elder, andpassionate about developing a safe, supportive, andpersonal care programs, referrals and resources,

inclusive learning environment.

emergency backup day care for our employees, andpaid parental leave benefits, as well as adoption andThroughout the pandemic, State Street has madefertility assistance (all vary by location).

thoughtful adjustments to how we attract, recruit,and retain employees while continuing our focus on
high-growth markets that align with our strategic

Talent acquisition, retention,

growth. We do this by providing tools, resources,and development

and learning experiences to employees to help

We regard our talent as one of our greatest strengths

them perform and advance in their career pursuits.

and by investing in our employees, we create long-

State Street offers competitive benefits along withterm value for our clients, protect our reputation, andmentoring and sponsorship programs, which are

grow our business.

attractive incentives for prospective candidates.

2021 ESG REPORT

1,300+560+

500+

EMPLOYEES PLACEDEMPLOYEES WEREPROMOT IONS RE SULT ED

THROUGH INTERNAL

SUCCE S SFULLYFROM INTERNALMOBILIT Y IN 2021

REDEPLOYED WITHIN THE

MOBILIT Y IN 2021

ORGA NIZ AT ION IN 2021

We continue our commitment to building a diverse
workforce, a key focus of our recruiting practices.
See Inclusion, Diversity, and Equity to learn more
about how we are working to create more diverse
candidate slates for open positions.
INTERNAL MOBILITY THROUGH OUR
TA L E N T M A R K E T P L A C E

State Street’s Talent Marketplace initiative represents
an investment in our talent and organizational
mobility while reducing cost by efficiently channelingtalent to hiring managers to fulfill business needs.
This translates to improved outcomes for both ourbusiness and our employees. Through the TalentMarketplace, employees can build valuable skills,
find new roles, and develop their careers.
This improves the mobility of our workforce, as
our employees become aware of and can apply for
hundreds of internal jobs throughout the world.

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S TAT E S T R E E T C O R P O R AT I O N

We focus on employees’ key skills to reposition

O F F E R I N G R O TAT I O N A L L E A R N I N G

them into new careers at State Street,

Our Professional Development Program (PDP)

complemented by upskilling versus exiting theselects high-performing recent college graduates,organization through restructuring.

including some who previously served as State
Street interns, to participate in a two-year

INDIVIDUAL TRAINING WITH DEGREED

tailored rotational program that immerses themState Street’s expanded learning platform,in different aspects of the business. Based on

Degreed, facilitates individual employee learning

feedback received from both business leaders andand development. We know that facilitating ourparticipants in 2021, we will be launching several

employees’ growth not only increases their long-

PDP business tracks in 2022.

term value and opportunities, but also benefits
the entire organization. Degreed helps individualThis allows participants to rotate through different

employees navigate available learning by providing

roles while focusing on a particular business area.

access to a wide range of offerings and by making

The program has been well received by participants

targeted AI-driven recommendations based on

looking to learn about State Street’s businessthe employee’s interests and skill profile. Courses

broadly, while gaining a greater understanding

range from micro-learnings to multi-hour programs

about areas of the business where they can makeand everything in between.

meaningful contributions.

D E V E L O P I N G A TA L E N T P I P E L I N E

TA K I N G L E A D E R S H I P T O T H E N E X T L E V E L

In alignment with our focus on education throughOur two-year Leadership Development Program

our grants and volunteer goals, we have created an(LDP) aims to take high-potential, mid-careerinternship program to engage students early in theiremployees who display the ability to navigate

academic careers by exposing them to experiential

the complexities of State Street’s dynamic global

learning prior to graduation.

business, and provide them with targeted rotational
assignments and accelerated professional

This program allows State Street to develop a talentdevelopment. Each program member is supported

pipeline by offering students the chance to get toby a senior leader for the duration of the program.

know our work culture and what we stand for asa brand. In turn, interns learn from experienced

The LDP helps us build a strong internal leadershipprofessionals in their field and students come away

pipeline by positioning top talent to ascend to roles

with new networking experience in the financialof higher responsibility. In 2021, 10 LDP participants

industry. Interns who excel are then encouraged tocompleted the program and achieved permanent

apply for positions at the company after finishingroles at the vice president or assistant vice

their studies.

president level.

2021 ESG REPORTIn 2021, we hired 41 people in the US and India who participatedin our Professional Development Program (PDP). To date, nearly
38 percent of our US PDP class worked at State Street as an intern or
co-op prior to participating. Similarly, in India in 2021, we formalized
our internship feeder program for PDPs, and 33 percent of our
upcoming 2022 India PDP cohort group consists of former interns.

MENTORSHIP PROGRAMS

Latin American Professionals GroupOur employee networks provide many programs and(LAPG) Mentoring Program

opportunities for professional development. In 2021,

This mentoring program offers a level ofthese included:

engagement and member development designed
to be a beneficial experience to both mentors andProfessional Women’s Network

mentees. The program curriculum incorporates(PWN) Sponsorship Program

targeted professional development sessions and

The purpose of the PWN Sponsorship Program

networking sessions to allow the members to

is to build and support a pipeline of leaders forbond and build on their current skills. Additionally,

the organization and help bridge the male/female

the mentors and mentees work on a professional

achievement gap. The PWN Sponsorship Program

development plan during the course of thispairs a mid-career participant with one of ourengagement. The program provides an opportunity

senior leaders, with the goal of either transitioning

for early- to mid-career members to enhance theirinto a strategic role or attaining a promotion.

leadership skills and prepare them to become thenext generation of leaders.

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S TAT E S T R E E T C O R P O R AT I O N

Latin American Professionals GroupC O R P O R AT E C I T I Z E N S H I P(LAPG) Data Presentation Workshops

The LAPG also launched a series of data

Over the past year, as the pandemic continued,

presentation workshops ranging from introductory

State Street maintained our commitment to being anclass for basic knowledge of software, to specialized

agent of positive social impact in the communities

workshops on data visualization. Employees were

where we live and have a business presence. Ourable to gain new skills, which allowed an increased

Corporate Citizenship team oversees a variety ofunderstanding of modifying data for optimalcommunity support initiatives that serve to benefit

visualization. Teams became resourceful andlocal communities as well as employees. Engaging

handled complex data from our clients. The successour employees for social impact gives them notof LAPG’s initiative to increase technical skills sets

only a sense of purpose in their work, but also pride

with data visualization workshops allowed for the

in working for a responsible corporate citizen. We

employee network to present this workshop at theadditionally invest in communities through grants

annual national professional convention with themade by our State Street Foundation.

Association of Latino Professionals for America(ALPFA), the first and largest national Latino
professional association in the United States.

S TAT E S T R E E T F O U N D AT I O N

For this work, the LAPG was recognized nationally as

Mission and strategy

among the best in class, being named a 2021 Diversity

State Street Foundation partners with charities

Impact Awards Top 25 Employee Resource Group, andthat operate in communities where State Streeta 2021 Top Employee Nework by LATINA Style 50.

Corporation has a presence and that are:

Disability 4 Disability Mentoring Program• Reducing gaps in educational achievement and

The Global Disability Awareness Alliance launchedemployability based on race, ethnicity and socio-a Disability 4 Disability mentoring program in 2021.

economic status

The program matched members globally with afocused outcome on the mentoring relationship. The• Promoting economic opportunity and racial equity

program is now entering its second phase for 2022
and is currently recruiting mentors and mentees• Demonstrating leadership, innovation, and afrom the multiple Disability Awareness Alliancegenuine connection with our communities

Employee Network chapters globally.
We seek to achieve this strategy by providing
unrestricted grants to support the core business
functions of organizations whose missions, activities,
and strategies closely align with our mission.

2021 ESG REPORTThis approach is designed to provide flexibility to the
management of the organization to determine its
spending priorities.

4
ANNUAL PAID RELE A SE DAYSIn 2021, State Street Foundation launched a new

FOR EVERY EMPLOYEE

multiyear college readiness and success initiative for
Early College. The concept of Early College involves the

disadvantaged high school students to work toward

1:1

high school graduation requirements while earning

M ATCHED EMPLOY EE DON AT IONS

college credits at the same time. The Massachusetts

AND FUNDRAISING EFFORTS

creation of a partnership between high schools anda higher education partner in a program that allows

Department of Elementary and Secondary Education
oversees the program and sets requirements for state
designation as an approved Early College, triggering
access to growing public funding.

$500

After lengthy due diligence, State Street Foundation

GR A N T E D FO R E V E RY 16 H O U R S

made substantial grants to four high schools in

VOLUNTEERED WITH A SINGLE

Massachusetts, as well as a partner who is providing

ORGA NIZ AT ION

ongoing coaching and technical assistance to the
Early College high school partners as they movetoward state designation.

56%

Focusing on racial equity and social justiceE X ECU T I V E V ICE PRE SIDEN TS AT

As part of State Street’s 10 Actions to Address

S TAT E S T REE T AC T I V ELY SERV ING

Racism and Inequality, Action No. 9 is centered on

ON A CH A RI TA BL E BOA RD

establishing combating racism as a priority forState Street Foundation as a complement to its
strategic focus areas of education and workforce
development, and to reprioritize grant spending
accordingly.

441
COMMUNIT Y ORGA NIZ AT IONSSUPP OR T ED BY S TAT E S T REE T
EMPLOY EE S, W HO DON AT ED MORET H A N 2 9, 0 0 0 V O L U N T E E R H O U R S

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S TAT E S T R E E T C O R P O R AT I O N

The benefits of virtual skills-based volunteering are that we are able to truly
bring the best of State Street to our charity partners, as location becomes a
bit of a moot point. I participated in a project benefiting the Greater Boston
YMCA with colleagues from the United States, Ireland and India whom I’dnever met. The diversity of thought, experience and background led to a muchbetter final deliverable for the YMCA.
WHITNEY KIMMEL
Vice President, Corporate Citizenship, State Street Volunteers

In June 2020, we committed to making $5 million

EMPLOYEES GIVING BACKin grants to the New Commonwealth Fund, anorganization working with community organizations

State Street employees are encouraged to support theand coalitions to address and eliminate systemic

charities that they care about most. To amplify theirracism and racial inequity, $2 million of which weefforts, Corporate Citizenship offers volunteer support

distributed in 2021.

and a robust matching gift program.

We updated our grantmaking guidelines to reflect

Our employees contribute to their local communities

racial equity and social justice (RESJ) principles lastin many ways, including:year, applying those guidelines to our Massachusetts
grants portfolio. We look forward to implementing• Participating in skills-based volunteer projects,

learnings from this process across our global

whereby employees utilize their professional

locations. In addition, we completed an in-depth

skills to help build capacity and strengthen ourreview of our Massachusetts grant partners tocharitable partners

determine which organizations are led by Black,Indigenous, and people of color (BIPOC) management,• Serving on a Community Support Program

intentionally serve a high percentage of BIPOC

committee, through which employees develop andclients, have diverse boards of directors, and those

execute volunteer projects and/or guide Foundation

who prioritize racial equity within their mission andgrants to local organizations

service activities.

2021 ESG REPORT• Joining a charity board to provide strategic

GLOBAL VIRTUAL VOLUNTEER WEEK

guidance and stewardship at the highest

For the second consecutive year, our Globalorganizational level

Volunteer Week went virtual as our employee
volunteers participated in a variety of virtual• Amplifying their charitable contributions throughvolunteer efforts. The main feature was our Day of

our Matching Gifts Program, comprised ofService, hosted in partnership with the nonprofit

GiveMore (1:1 donation match), CollectMore

Common Impact. This was a flash consultation(matching charitable fundraising efforts), andin which employee volunteers are partnered

DoMore (monetizing volunteer time; for every

with a charity and a team of fellow State Street

16 hours volunteered with one organization, theprofessionals to tackle a specific challenge in one

organization receives a grant of $500)

day. As part of our 10 Actions to Address Racism
and Inequality, all 15 charities participating in Global• Using their four days of paid volunteer release time toserve a charitable organization during business hours• Planning and hosting volunteer projects for theirbusiness units or teams

Volunteer Week have a mission to actively combat
systemic racism and fight for social justice.

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S TAT E S T R E E T C O R P O R AT I O NS TAT E S T R E E T F O U N D AT I O N G I V I N G

E D U C AT I O N A N D

RACIAL EQUITY &WORKFORCE
D E V E LO P M E N T
GRANTMAKING$14.5 M

SOCIAL JUSTICEE M P LO Y E E
M AT C H I N G G I F T S$4.6 M

OTHER, INCLUDING

FOCUSEDVOLUNTEERINGGRANTMAKING

AND DISASTER RELIEF$3.1 M$2.6 M$24.8 MT O TA L G I V I N G B YS TAT E S T R E E T F O U N D AT I O N

2021 ESG REPORT

87

394

$3.2M

SKILLS-BASEDVOLUNTEERS

IN MONE TA RY VA LUE

VOLUNTEERDON AT ING 14 ,000

PROVIDED TO OURPROJECTSHOURSCHARIT Y PARTNERS

Our aim was to help these organizations thrive, build

Also in 2021, we helped 10 grant partners navigate

capacity and continue amplifying their missions.

COVID-19 with the support of Root Cause, a purpose-

Since 2003, this collaboration has resulted in 87

driven consulting firm. With great success andskills-based volunteer projects with 394 volunteers

feedback, we launched a second iteration withdonating 14,000 hours and provided a monetaryanother group of 10 grantees focused on continuous

value of $3.2 million to our charity partners.

quality improvement, organizational culture, andinclusion, diversity, and equity efforts.

SKILLS-BASED VOLUNTEERING

Our skills-based volunteering program allows
employees to offer their unique skills to nonprofit
organizations or initiatives. Benefiting organizations
gain specialized assistance in areas where State
Street employees have expertise — such as
marketing strategies, hybrid work activation, anddata analysis — while employees are empowered tosupport causes they care about and get hands-on
professional development experience.

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S TAT E S T R E E T C O R P O R AT I O N

2021 ESG REPORTBOA RD GOV ERN A NCE A ND
E SG M A N AGEMEN T

As a global systemically important bank, it is

For more details on the frequency of board

important that we embed strong corporate

meetings and delegation of responsibilities, please

governance standards and seek to limit the potential

see our 2022 Proxy Statement.

negative impacts on our economy, society, andstakeholders. We believe that strong corporate
governance includes oversight and management

Our guiding policies and chartersof material ESG issues. Our corporate governanceState Street’s Corporate Governance Guidelines andstructure is designed to promote the responsible andthe Standard of Conduct for Directors offer guidance

proactive management of our identified ESG material

to the board on its role, responsibilities, functions,issues, with policies and strategies for mitigating theand conduct expectations. The board also follows theassociated risks.

Governance Standards relative to the Investor
Stewardship Group (ISG) Governance Principles.
The board has several principal committees to assist

BOARD GOVERNANCE

it in carrying out its responsibilities. Committee
mandates are set out in the below charters:

Our board of directors is responsible for acting
in the best interests of State Street and its• Examining and Audit Committee

shareholders and works to enhance the company’s• Executive Committee

long-term value while accounting for the needs of• Human Resources Committee

employees, clients, and the communities where• Nominating and Corporate Governance Committee

we operate. The board meets regularly, either• Risk Committee

in person or virtually, to assess our business• Technology and Operations Committee

strategy, performance, and policies, as well as our
corporate responsibility initiatives and objectives.

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S TAT E S T R E E T C O R P O R AT I O N

In addition to the board, State Street employees

In 2021, the Nominating and Corporate Governanceare expected to uphold the company’s values andCommittee of the board and the board itself reviewed

act with integrity when representing the company.

proposed changes to the charters of each of the

These expectations are outlined in the Code ofcommittees of State Street’s board to incorporate

Ethics for Senior Financial Officers and Standard ofoversight responsibilities for ESG activities. ThroughConduct for employees.

this effort, the charter of every committee of theboard changed to incorporate oversight for ESG

The board gains insights into best practices in

activities, initiatives, and obligations for matters

ESG management by regularly engaging with our

within each committee’s specific remit. The changes

shareholders. In 2021, we engaged with or requested

were intended to formally allocate the board’s

engagement with shareholders representing

oversight responsibilities for ESG matters, such as

approximately 65 percent of our outstanding

climate risk, to the relevant committees. In addition,common stock. During these meetings, management

the board’s corporate governance guidelines wereof ESG issues was a key topic of interest for

expanded from a posture of monitoring ESG to a moreshareholders, building off previous conversations on

active role.

social matters like diversity and inclusion initiatives
to climate risk.

Rick Lacaille, our global head of ESG, continues tobe a dedicated member of our executive leadership.
He regularly meets with the board to provide

E M B E D D I N G E S G A C C O U N TA B I L I T Y

ESG management insights and updates, ensuringthat the board is informed about ESG and risk

We continue to prioritize the management of ESG

mitigation strategies. Additionally, he is the chair ofissues as identified by stakeholders in our materiality

the Executive Corporate Responsibility Committee,

assessment process. Our board is taking a holistic

which oversees internal ESG efforts across theview of ESG management and has worked to further

company, reporting to the board at least once per

embed ESG accountability into our governanceyear regarding the company’s ESG-related goals

structures, after first taking on responsibility forand strategies.

oversight of material ESG issues in 2018.

2021 ESG REPORTBOARD DI V ERSIT Y1

92%(12 out of 13)30%(4 out of 13)

23%(3 out of 13)

Independent Directors
1

As of April 20, 2022

Female Directors

Racially Diverse Directors

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S TAT E S T R E E T C O R P O R AT I O N

30%

23%

OF DIRECTOR NOMINEES FOR THE 2022

OF DIRECTOR NOMINEES FOR THE 2022

ANNUAL MEETING OF SHAREHOLDERS

ANNUAL MEETING OF SHAREHOLDERS

ARE FEMALE

A RE R ACI A LLY DI V ERSE

BOARD DIVERSITYBOARD INDEPENDENCE

State Street has long recognized the value ofAll members of our key board committees—theboard diversity. We believe that diversity provides

Nominating and Corporate Governance Committee,

a broader range of perspectives and supports

the Human Resources Committee, and the Examining

improved decision-making. In 2021, we enhanced

and Audit Committee — meet the independence

our Corporate Governance Guidelines and ourrequirements of the New York Stock Exchange (NYSE).

Nominating and Corporate Governance Committee

We have a Risk Committee, on which the chairman

charter to reinforce our commitment to actively seek

and four independent directors serve, as well as adiverse candidates for the pool from which director

Technology and Operations Committee, on which

candidates are chosen.

five independent directors serve. Based on NYSE
listing standards, 92 percent — 12 of 13 — directors

In an effort to meet such diversity objectives, theare independent1.

Nominating and Corporate Governance Committee
and the board consider a broad range of attributes
when assessing director nominees and new

BOARD BEST PRACTICE

candidates, including demographics such as gender
identity, race, ethnicity, sexual orientation and national

In addition to our ongoing work to uphold goodorigin in addition to independence, tenure of board

governance practices within our own operations,service, professional experience, and skill set. For the

we also acknowledge—given our broad reach and2022 annual meeting of shareholders, 30 percent ofinfluence—the importance of sharing insights withthe director nominees are female and 23 percent are

our clients on responsible board governance.

racially diverse .
1

1

As of April 20, 2022

2021 ESG REPORT92%
OF DIRECTORS ARE
INDEPENDENT

Through our asset stewardship team at State Street
Global Advisors, we offer guidance to boards ofportfolio companies on best practices and insights
on advancing standards of governance.
We provide valuable insights to boards on how
to effectively manage ESG issues at the seniorleadership and board level, with a particular focus
on how best to oversee risks, opportunities, andimpacts related to climate change and inclusion,
diversity, and equity. Our Board of Directors
Resource Center is designed to enable corporate
directors to steer their companies toward a more
resilient, sustainable, and inclusive future.

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2021 ESG REPORTRISK , E THIC S, A ND
COMPLI A NCE
State Street is committed to the highest standards

This committee holds responsibility for reviewing

in risk, ethics, and compliance in the interests ofand approving the firm’s risk management policies

all our stakeholders. We consider every one of ourand overseeing our global risk management

employees to be a custodian of our reputation.

framework, which is reviewed at minimum once per

To continue creating long-term value for ouryear. Our three lines of defense framework governs

stakeholders, our employees must act in alignment

our operational risk, and more information can bewith our values in everything they do. That is why thefound in the GRI Index.

company keeps ethical decision-making as a central
tenet of our codes of conduct.
A DA P T I N G T O E VO LV I N G
Our clients expect us to hold our board members,

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

senior leadership, and all of our employees
accountable for our high standards of risk

As a global financial institution with operations aroundmanagement, ethics, and compliance. In addressing

the world, State Street is subject to laws, rules,

this expectation, State Street takes a comprehensive

and regulations in numerous jurisdictions and by

approach to considering risk and ensuring that all ofnumerous regulatory bodies. Further, our designation

our employees keep it top of mind in their day-to-day

as a global systemically important bank, a reflection

work and in executing their responsibilities.

of State Street’s size, complexity, global footprint,
and interconnectedness across the financial system,

Risk and compliance are part of our coreleadership skills and measurable metrics ofmanagement performance. Embedded throughout
our organization, risk management starts with the
Risk Committee of the board and flows through theentire organization.

comes with heightened supervisory expectations.

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S TAT E S T R E E T C O R P O R AT I O N

In order to address compliance risk,1 and the evolving

A shifting ESG regulatory landscaperegulatory landscape, State Street’s Compliance

While more ESG reporting standards are moving

Risk Management Policy and supporting frameworkfrom voluntary to required, there is still little(“Compliance Program”) sets forth enterprise-widestandardization of ESG regulations and disclosure

standards for identifying, assessing, monitoring andframeworks across the many geographies inreporting on compliance risk.

which we operate. We continue to be part of thepolicy development that shapes our industry, with

Our Compliance Program applies a risk-based

an eye towards the development of consistent,

approach to ensure both management and control

internationally standardized ESG regulation andfunction resources are directed to those risks,

comparative data sets for effective disclosures.

regulations, and regulators that represent the greatest
exposure and therefore require the greatest level ofengagement. Our regulatory change management

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

programs are designed to promptly identify changes

I N T O O U R C U LT U R E

to the regulatory environment that impact State
Street’s legal entities, the products and services

We know that a balanced, inclusive, and measured

they provide, and the operations they conduct.

culture helps underscore ethical conduct. To help

Management and control functions work in concert

build that culture, we are consistent and strategic

to ensure that relevance and applicability to Statein how we approach and reward compliance andStreet is understood and that internal processes,

risk excellence. We have both individual rewards

procedures, and controls are designed to address

programs and disciplinary response mechanisms tochanges in the external regulatory environment.

deal with these.

The regulatory landscape is dynamic and always

During 2021, we developed a summary of key

evolving. In order to navigate compliance in thiselements put in place at State Street to manage

complex environment, State Street continuously

business conduct risk. This details the practices weseeks opportunities to optimize our programs.

follow related to conduct risk or those that influence
our ability to manage conduct risk. These practices
extend beyond individual employee conduct, to also
cover business conduct risk, taking into accountstrategy and operations, our systems for monitoring,and our process for implementing controls.

1

Defined as the risk of legal or regulatory sanctions, material financial loss, or loss to reputation resulting fromfailure 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).

2021 ESG REPORT

Many of the elements highlighted within the

COMPLIANCE TRAINING

document are integrated into the existing risk
management infrastructure, which helps make theWe carry out compliance training for our employees

management of conduct risk scalable throughout ourto ensure that they understand the standards thatbusiness with embedded programs and resources.

have been set for conduct and as well as our culture
and values. We provide the tools necessary to ensure
our teams are fully aware of how to engage with ourO U R C O N D U C T S TA N D A R D S

clients, prospects, business partners, peers, andCOMMITTEE

other stakeholders.

Our Conduct Standards Committee is responsible

This training curriculum covers our Ethicalfor overseeing State Street’s program for theDecision-Making Framework, Standard of Conduct,

enforcement of employee conduct standards. This

and Anti-Bribery Policy and Corruption Policy, as

committee, made up of senior leaders, is tasked

well as industry-specific conduct requirementswith ensuring that we have a consistent approach

related to issues such as information security andto applying our conduct standards framework to all

privacy, conflicts of interest, insider trading, andmatters throughout the organization.

fraud awareness.

As the body responsible for overseeing andreviewing all employee conduct matters, it reviews

MONITORING HUMAN RIGHTS

these matters and decides appropriate responses.

R I S K S I N O U R S U P P LY C H A I N

In the spirit of transparency and to underscore ourculture of risk excellence, we compile an annual

As a global firm with a global presence, we have anreport for all employees that highlights noteworthy

obligation to ensure that our procurement practices

committee activities, detailing the types of matterscomply with all human rights-related laws andthat the committee has dealt with and the outcomes.

regulations. We have rigorous standards in place for

Importantly, it highlights conduct examples that fall

our suppliers and closely monitor human rights risks

short of our expectations.

within the supply chain. More information on how weapproach management of human rights risks can befound in our Human Rights Statement, which also
references our commitment to the United Nations
Global Compact, and most recent Modern Slavery
Act statement.

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2021 ESG REPORTOPER ATION A L A ND
CY BER RE SILIENCE
As a leading global financial institution, we are the

CYBER RESILIENCE

custodians of extensive data and information about
our key stakeholders, particularly our clients andOur cyber defense is spearheaded by our Global

our employees. One of the greatest threats to our

Cybersecurity team (GCS), tasked with continuallyorganization, and our client security, is the potential

improving cybersecurity by developing and evolving

compromise of that data. We go to extensive lengths

our security policies and processes, upskilling ourto ensure that the data and information entrusted tointernal cyber team, performing awareness training

us is secure.

for our employees, increasing security of our systems,
enriching incident response via an intelligence-driven

As the scale of our organization grows and theapproach, and continually testing our systems for rigor.

complexity of the systems we operate increases,
continuing to strengthen our defenses against

This targeted, proactive approach reinforces ourpotential data and privacy breaches is essential.

network for resilience and works to ensure significant

As such, operational and cybersecurity resilience isinvestment in tools, emerging technologies, anda priority within our business strategy. State Street

skilled talent.

uses rigorous training, policies, and procedures
to manage these risks effectively throughout our

In 2021, with a global hybrid workforce split

organization, to ensure that our staff and systems

between our offices and working remotely, ourare addressing the most severe potential threats

operational and cyber resiliency was once again

and to constantly develop new ways to protect

tested. With the security of all our stakeholders

our systems.

front of mind, we regularly and diligently tested
our systems, carried out reconciliations andprocesses, and made important improvements.

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S TAT E S T R E E T C O R P O R AT I O N

Policy and regulationO P E R AT I O N A L R E S I L I E N C E

The GCS team establishes the framework, policies,and related programs to measure, monitor, andWe monitor and map emerging threats to thereport on cybersecurity risks, including theoperational side of the business — from climate-effectiveness of cybersecurity program protections.

related floods to geopolitical issues to unstable

GCS also defines and manages the enterprise-governments. We know these potential threats canwide cybersecurity program. We have adopted thehave a detrimental impact on any global organization

National Institute of Standards and Technology

and given the interconnectedness of the global(NIST) Cybersecurity Framework, which is a set

financial markets in which we operate, it is prudent

of guidelines and recommendations that combine

for us to manage them well.

industry standards and best practices to helporganizations manage their cybersecurity risks. In

To provide us with an understanding of ouraddition, our business operations in the European

concentration risk, we segment all the countries inUnion (EU) comply with the General Data Protection

which we work based on the emerging threats weRegulation (GDPR), which protects the data privacy

identify. This prepares us for situations that may

and security of individuals there.

require redeploying resources or restructuring ourphysical operations or locations.

Cybersecurity by its nature crosses boundaries
and borders, and has an impact on all of our

For example, certain parts of a country may be

stakeholders. State Street considers cybersecurity

classified as vulnerable to weather while others

everyone’s responsibility — it is not just a box that

may have infrastructure threats, so we plan

we check, it is ingrained throughout the organization.

according to these classifications. We then overlay

To support this sense of responsibility, GCS

plausible scenarios across these regions to assist

constantly improves awareness and education onwith our planning.

managing cyber risks — for our clients and our
employees. This education includes a required

By identifying and understanding potential threats,

annual online course for all employees, multiple

we can be better prepared to continue operating

simulated phishing attacks, and regularly updated

and servicing our clients and the market without

information security awareness materials.

interruption. Key to this is considering how we canreduce the effects and harm of known crises that

People are key to our success. In a highly competitive

may recur, such as impacts of COVID-19 (or future

field, we prioritize attracting and retaining the best

pandemics or health-related events), climate change

talent and expertise globally. We are also committed(including extreme weather events), and other crises.

to attracting a diverse talent pool to further broaden

As we adjust to a hybrid working model, we are

the skill sets on the team.

continuing to adapt our continuity requirements to amore virtual workforce.

2021 ESG REPORTSupply chain diversity
We know that having a diverse supply chain is aneffective risk mitigation strategy — it spreads therisk and is a critical factor in promoting business
continuity in the face of potential threats. As we haveseen through COVID-19, supply chains can fail, andtherefore amortizing the risk across a more diverse
set of suppliers helps to buffer supply interruptions.
State Street engages roughly 5,000 suppliers acrossthe globe who provide us with various products
and services, including business and professional
services, financial, IT, market data, office support,
and travel management.
A responsible supply chain is also a more resilient
supply chain. As part of our requests for proposals,
we review suppliers in our selection process toensure they comply with human rights laws, rules,
and regulations, and clauses prohibiting humantrafficking and modern slavery are included inour supplier contracts. For more information,
see Enhancing Supplier Diversity.

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2021 ESG REPORTDATA PRI VACY

Our clients’ trust and confidence are at the

Our Privacy Office is responsible for the governancefoundation of our relationship with them — andof personal data, including its use, retention, andmaintaining a high standard for data privacy allows

disclosure.

us to strengthen those relationships. As the scaleof our organization grows and the complexity of

The Privacy Office operates the State Street privacy

the systems we operate increases, continuing toprogram and has implemented an internal Global

strengthen our defenses against potential personal

Privacy and Personal Data Protection Standard

data breaches is essential.

(“Privacy Standard”) for all of our employees. In
addition, all employees are required to complete

At State Street, we are committed to handlingtraining annually on global privacy and personal data

personal data responsibly and transparently –protection. Personal data, defined as any information

whether it is data regarding our clients, vendors,

that can be used to directly or indirectly identify an

employees, or other third parties. In addition,individual, is required to be processed lawfully, fairly,

it is necessary that we uphold all regulatory

and in a transparent manner.

requirements globally, including the General Data
Protection Regulation (GDPR) in the European Union,

Although there are differences in local privacy

as well as regulator expectations. To that end, data

and data protection regulations, State Street’s

privacy is a collaboration between two corporate

global privacy standard incorporates the many

functions – global cybersecurity (GCS) and thevariations into an overall approach that is consistent

Privacy Office. GCS, as detailed in Cyber Resilience,

and applicable to all employees. We focus on

manages the general protection of information,

data minimization, respect for data subject rights

including data security and network security.

requests, limitations on the transfer and storageof data, lawfulness, security, and accuracy.

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S TAT E S T R E E T C O R P O R AT I O N

It is every employee’s responsibility to safeguard

As protection of information is a core component

the personal data entrusted to us, regardless ofof data privacy, GCS establishes the framework,

whether the data subject is an employee,

policies and related programs to measure, monitor

client, or other individual.

and report on information security risks, including
the effectiveness of cybersecurity program

In addition to the Privacy Standard and the oversightprotections. In addition, GCS coordinates with

provided by the Global Privacy Office, business units

Information Technology, control functions, andand corporate functions assess privacy risk and thebusiness units to support the confidentiality, integrity

mitigating control environment through State Street’s

and availability of corporate information assets.

non-financial risk assessment programs, which take

Recognizing the significance of cyberattacks, we

into account technology, operational, and compliance

have taken steps to mitigate the associated risks.

risks. Privacy controls are periodically monitored
and tested by Corporate Compliance and Corporate
Audit.

2021 ESG REPORTA PPENDI X

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2021 ESG REPORTS TAT E S T R E E T 2021 E S G R E P O R T - A P P E N D I X

SUS TA IN A BILIT YACCOUN TING
S TA NDA RDS BOA RD(SA SB) REP OR T

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S TAT E S T R E E T C O R P O R AT I O NS U S TA I N A B I L I T Y A C C O U N T I N G S TA N D A R D S
BOARD (SASB) REPORT

Asset Management and Custody Activities
INTRODUCTION

State Street Corporation is a financial holding company organized in 1969
under the laws of the Commonwealth of Massachusetts. We conduct ourbusiness primarily through State Street Bank, which operates as a specializedbank, referred to as a trust or custody bank, that services assets on behalf ofinstitutional clients.
We have two lines of business: investment servicing and investment management.
Our investment servicing line of business performs core custody and related
value-added functions, such as providing institutional investors with clearing,
settlement, and payment services. Our financial services and products allow ourlarge institutional investor clients to execute financial transactions on a daily basis
in markets across the globe. As most institutional investors cannot economicallyor efficiently build their own technology and operational processes necessary
to facilitate their global securities settlement needs, our role as a global trustand custody bank is generally to help our clients efficiently perform services
associated with the clearing, settlement and execution of securities transactions
and related payments.
Our investment management business, State Street Global Advisors, provides abroad range of investment management strategies and products for our clients.
Our investment management strategies and products span the risk/reward
spectrum, including core and enhanced indexing, multi-asset strategies, active
quantitative and fundamental active capabilities, and alternative investment
strategies. Our assets under management (AUM) is currently primarily weighted
to indexed strategies. We provide a breadth of services and solutions, including
environmental, social and governance (ESG) investing, defined benefit and defined
contribution, and an outsourced chief investment officer (OCIO) model.

2021 ESG REPORT

Global Advisors is also a provider of exchange-traded funds (ETFs), including theStandard & Poor’s Depositary Receipt (SPDR®) ETF brand. Our clients include
managers of mutual funds, collective investment funds and other investment
pools, corporate and public retirement plans, insurance companies, foundations,endowments, and investment managers.

T R A N S PA R E N T I N F O R M AT I O N A N D FA I R A D V I C E F O R C U S T O M E R S

FN-AC-270a.1

1) Number and (2) percentage of covered employees with a record of investment-related
investigations, consumer-initiated complaints, private civil litigations, or other regulatory
proceedings
There were no State Street employees with a record of new investment-related
investigations, consumer-initiated complaints, private civil litigations, or otherregulatory proceedings disclosed in 2021. State Street has extensive policies,
procedures, trainings, and controls designed to ensure compliance with allapplicable rules and regulations. For more information, see [Risk, Ethics andCompliance].
FN-AC-270a.2

Total amount of monetary losses as a result of legal proceedings associated withmarketing and communication of financial product-related information to new andreturning customers
In 2021, no fines or other financial or non-financial sanctions were disclosed orlevied related to legal proceedings associated with marketing and communicationof financial product-related information to new and returning customers. State Street
discloses all material legal and regulatory proceedings in our Form 10-K
and Quarterly Reports on Form 10-Q.

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FN-AC-270a.3

Description of approach to informing customers about products and services
When approaching clients or prospective clients about our services, we are subject
to a range of regulations regarding the accuracy and fairness of the messaging.
The way we communicate with our clients varies and includes several factors
including applicable laws and regulations, the type of client, and the product orservice being discussed. In all cases, we provide all relevant information to ourclients regarding the service provided, costs, risks, and any warranties regarding
performance. In the case of investments, we provide the fund or product’s
constituent documentation and the investment strategy, characteristics, fees andexpenses, financial statements, and performance. For transparency informationfor our hedge fund, private equity, real estate, ETFs, mutual funds (MFs), andcommingled funds, read here.

EMPLOYEE DIVERSIT Y & INCLUSIONFN-AC-330a.1

Percentage of gender and racial/ethnic group representation for (1) executive
management, (2) non-executive management, (3) professionals, and (4) all other
employees2
For more information regarding State Street’s approach to inclusion and diversity,
including our policies and programs for fostering equitable employee representation
across our global operations, see [Inclusion, Diversity, and Equity] and our website.

2021 ESG REPORTGLOBAL GENDER REPRESENTATION:
FemaleMale

Not Disclosed/Available

Executive Management

33%

67%

0%

Non-Executive Management

35%

65%

0%

Professionals and
All Other Employees

52%

48%

0%

US RACIAL/ETHNIC GROUP REPRESENTATION:

White

Hispanicor Latinx

AmericanIndianor Alaska
NativeNativeHawaiianor Other
Pacific Islander

Not
Disclosed/
Available

1%

80%

3%

0%

0%

4%

3%

1%

64%

3%

0%

0%

4%

10%

1%

56%

7%

0%

0%

3%

Asian

Black orAfricanAmericanTwo orMore
Races

Executive
Management

9%2%

Non-Executive
Management

24%

Professionals
and all other
employees

23%

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S TAT E S T R E E T C O R P O R AT I O N

I N C O R P O R AT I O N O F E N V I R O N M E N TA L , S O C I A L , A N D G O V E R N A N C E
FAC T O R S I N I N V E S T M E N T M A N AG E M E N T & A DV I S O RY

F N - A C - 41 0 a .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
Total Sustainability
ThemedSustainability Themed with No
Screening

Total
Screening

Screening with No Thematic

Equities$68,116,384,078.91$30,718,191,286.19$411,061,155,950.06$373,662,963,157.34

Fixed Income$262,054,436.32-$46,273,388,175.56$46,011,333,739.24--$1,302,938,766.88$1,302,938,766.88

Other (Alternative
Investment, Multiasset
Class Solutions)$7,288,516,638.35-$9,815,773,426.08$2,527,256,787.73

Total$75,666,955,153.58$30,718,191,286.19$468,453,256,318.58$423,504,492,451.19

Cash

State Street Global Advisors currently has more than $516 billion in ESG assets
under management, which comprise about 12.5 percent of State Street’s AUM as ofDecember 31, 2021. Industry definitions of ESG eligibility and related categorizations
continue to evolve over time. These updates and refinements have resulted in minorchanges in the methodology used in defining ESG AUM compared to the prior year. In
addition, through the process of updating our methodology in 2021 to be in line withindustry standards, we identified some areas where asset classes should be recategorized to ESG, and some from ESG to non-ESG, in aggregate resulting in a minor
net reduction in ESG assets.

2021 ESG REPORT

Please note that the following definitions are used for the ESG AUM breakdown(estimated and unaudited ESG AUM as of December 31st, 2021).
Screening AUM covers client mandates in the following categories: Negative/
exclusionary screening and Norms-based screening, as defined by United Nations
Principles for Responsible Investing (UNPRI) as:• Negative/exclusionary screening: The exclusion from a fund or portfolio of certain
sectors, companies or practices based on specific ESG criteria.
• Norms-based Screening: Screening of investments against minimum standards ofbusiness practice based on international norms.
Sustainability themed AUM covers client mandates in sustainability themed
investing, as defined by United Nations Principles for Responsible Investing (UNPRI)
as investment in themes or assets specifically related to sustainability (for example
clean energy, green technology or sustainable agriculture).
Finally, Global Advisors manages an estimated and unaudited ESG integration AUM
of $48.5 billion as of December 31st, 2021 in client mandates that are not explicitly
identified as ESG and have no ESG objectives but include material ESG factors into
investment analysis and investment decisions.

FN-AC-410a.2

Description of approach to incorporation of ESG factors in investment and/or wealthmanagement processes and strategies
Driven by our 35-year legacy in ESG investing, Global Advisors’ mission — to invest
responsibly to enable economic prosperity and social progress — reflects ourcommitment to ESG principles. However, we do not take a one-size-fits-all approachto ESG investing.

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Our approach varies between investment teams to reflect the ESG integration
philosophy of each team and the specific nuances of each investment strategy. As
such, to achieve better risk-adjusted returns, our investment teams assess whether
and how financially material sustainability risks are integrated into their investment
analysis and decision-making processes. This approach is detailed in our ESG
Investment Statement. Specific approaches to ESG investing by investment area aresummarized below.
Equity Index/Smart Beta

Within our equity index strategies, ESG can be integrated in multiple ways —either through the index itself (such as an index that either incorporates ESG
characteristics or has sustainable investment as its objective) or as a custom
solution via our beta solutions capabilities.
Active Quantitive Equity

The Active Quantitative Equity (AQE) team believes that higher-quality companies, asmeasured by their scores on relevant ESG metrics, will deliver better risk-adjusted
returns than lower-quality companies over the long term. The team has embedded
ESG considerations into its investment process through the measurement ofsustainability risks, through asset stewardship and by integrating ESG metrics into
the assessment of expected stock returns.
Active Fundamental: Equity — Growth/Core

Having long used ESG data to help isolate specific issues and assess the qualityof companies and the sustainability of their growth, the teams systematicallyincorporate R-FactorTM and other ESG data metrics into their investment decisionmaking processes. In some cases, they may still invest in companies where
the team may have a positive view of company fundamentals despite a lack ofdata and/or poor ESG scores; as ESG disclosures by such companies continue
to improve and availability of data increases, the teams believe that scores will
become more meaningful.

2021 ESG REPORT

Active Fundamental: Equity — Value

The team has long sought to identify and incorporate material ESG issues into
its investment decision-making processes. Analysts will not typically exclude
companies on the basis of a low or challenged ESG score. Instead, they seek tounderstand the underlying ESG issues and their potential impact on earnings power,
balance sheet strength and the value of the business. Their priority is long-term
returns, and they seek to focus on the price paid versus the risk taken. Where, after
analysis, the team has a positive view of both the fundamentals and valuation of acompany, it may still invest despite a challenged ESG score.
Fixed Income

Global Advisors manages both fixed-income index strategies, including those that
seek to minimize costs and tracking error while adding value through a stratified
sampling approach, as well as active strategies, which can be heavily reliant
on credit research assessments. ESG factors play a particular role in helping
to better assess “events” that can impact creditworthiness and valuation. In
particular, corporate governance plays an overarching role in fixed-income credit
assessments. Governance structures drive risk policies and can safeguard proper
checks and balances. The same investment considerations may also be applicable
to environmental and social factors.
Integrating ESG factors into fixed-income investing can be complex given thewide spectrum of available security types. Robust ESG data now exists for most
corporate bonds, but it can become more challenging to assess sustainability risksof other fixed-income security types, such as sovereign bonds and securitized
products. Most recently our fixed-income teams have developed low-carbon andclimate investment strategies, helping investors not only reduce the environmental
impact of their portfolios but also fund the transition to a greener economy.
Within our fixed-income indexing capabilities, sustainability risk can be integrated ina number of ways — similar to equity, this could be through the index itself (such asa third-party index) or by deploying screens, tilts, or stratified sampling techniques
using ESG factors.

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As with equity indexing strategies, mandates with the sole objective of replicating
the return of a non-ESG fixed income benchmark do not consider sustainability
risk in investment selection as the primary driver of investment decisions will be
the constituents of the relevant index. Our active fixed-income teams consider
sustainability risk in their investment decision-making process by utilizing
R-factorTM and other tools and data sets to consider the impact of ESG issues on
an issuer’s credit-worthiness. In addition, State Street Global Advisors’ Risk teamincreasingly considers sustainability credentials in its counterparty selection andoversight processes.
Cash

Cash management combines short duration and high-quality investments with theprimary objectives of principal preservation and access to liquidity. Indeed, ESG
factors are embedded and aligned with cash investment analyses and portfolio
construction philosophies, which focus on risk mitigation, as well as balancing
regulatory and rating requirements. The R-Factor™ score has been integrated
into our Global Cash systems and investment process. As a result, our investment
professionals have real-time access to approved issuers and their corresponding
R-Factor™ score. Similar to issuer ratings, the R-Factor™ score is an input to thecredit process but is not the driver of the overall investment decision.
Currency

Currency hedging mandates are typically focused on removing the currency
exposure in an underlying portfolio and so do not take a view on the long-termsustainability of the economies underlying the currencies. Where mandates allow
Global Advisors to take into account the longer-term growth potential of economies,
we include a measure of the quality of different countries’ governance. In addition,
an important part of currency management is the management of counterparty risk.
Our Counterparty Risk Management team is increasingly taking into account ESG
factors in its counterparty approval process.

2021 ESG REPORT

Multi-asset, Customized Solutions and Alternatives

Our Investment Solutions Group (ISG) is responsible for building multi-asset andcustom solutions to meet our clients’ specific investment objectives. State Street
Global Advisors’ strategic asset allocation recommendations for our clients are
dependent on the long-term assumptions we make about future risks and returnsof portfolio components. R-Factor™ is incorporated into our long-term equity asset
class forecasts. As some countries’ R-Factor™ scores are semi-permanently higher
than others (due to structural differences in culture, law or environment), we focus
on how R-Factor™ scores rise or fall over time, rather than on absolute levels.
ISG engages directly with the client to create a portfolio that meets the client’s
specific objectives including, where relevant, ESG objectives. As part of the portfolio
construction process, the team assesses the ESG characteristics of each underlying
investment strategy. The team incorporates these findings into the overall portfolio
construction process, balancing the client’s ESG goals with other risks to constructa portfolio solution that addresses the client’s overall investment objectives.
In addition, in July 2021, our Investment Solutions Group (ISG) and Global Fiduciary
Solutions (GFS) teams were integrated into a single, multi-asset investment
organization. This part of our ISG (previously Global Fiduciary Services) team is
responsible for outsourced investment management with specific expertise acrosstraditional long-only as well as alternative investment asset classes. The teamengages directly with clients to understand their specific investment objectives.
As a natural part of their investment process, the team carefully assesses the ESG
policies and practices of our outsourced managers and direct investments, and also
evaluates material ESG factors at the total portfolio level. With this understanding,the team is able to design solutions that align with our clients’ ESG objectives.
FN-AC-410a.3

Description of proxy voting and investee engagement policies and procedures
Our approach to proxy voting and issuer engagement is premised on the belief thatcompanies that adopt robust and progressive governance and sustainability practices
are better positioned to generate long-term value and manage risk. As near-perpetualholders of the constituents of the world’s primary indices, the informed exercise of
voting rights coupled with targeted and value-driven engagement is one of the mosteffective mechanisms for creating value for our clients.

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Our engagement and proxy voting prioritization processes are illustrated in the following graphic:

ENGAGEMENTAs an investor in more than 12,000 listed companies, prioritization is essential to effectiveness. Our active target list includes
companies across seven main regions/markets of our stewardship activities (Australia, Canada, emerging markets, EU,
Japan, UK, and US).

Process
How we prioritize

Portfolio Exposure
Absolute and relative
holdings

Proprietary
ESG Screens
Negative screening
on ESG factors

Thematic andSector Priorities
Stewardship plan

PROXY VOTING
In 2021, we voted at nearly 21,000 meetings and on over 187,000 management and shareholder proposals. As such,prioritization of vote issues is an equally important aspect of our stewardship program.

Process
How we prioritize

Alignment with Investment
Strategy and Value Creation
Strong financial link
to portfolio

Proxy Voting
Priorities
Stewardship plan

Proprietary ESG
Screens
Negative screening on
ESG factors

2021 ESG REPORTAll voting and engagement activities are centralized within our Asset Stewardshipteam, irrespective of investment strategy or geographic region. Further, the Asset
Stewardship team leverages the breadth of our investment capabilities to makeinformed decisions.
In conducting voting and engagement activities, we evaluate the critical factorsthat play into the corporate governance framework of a country, which include
macroeconomic conditions, the political environment and quality of regulatory
oversight, enforcement of shareholder rights, and the effectiveness of the judiciary.
We complement our company-specific dialogue with targeted engagements withregulators and government agencies to address systemic market-wide concerns.
State Street Global Advisors has a dedicated team of ESG analysts, based in Boston,Stamford, London, Krakow and Bangalore , who are charged with implementing
its proxy voting guidelines and engagement activities on a global basis. The
Stewardship Team’s activities are overseen by the State Street Global Advisors
Investment Committee (IC), acting through the Proxy Review Committee, which is a
sub-committee of the IC. The Proxy Review Committee is responsible for reviewing
our stewardship strategy, engagement priorities, and proxy voting guidelines andmonitors the delivery of voting objectives. In addition, the Proxy Review Committee
provides oversight of our Stewardship Team, reviews departures from our proxyvoting guidelines, and reviews conflicts of interest involving proxy voting.
Our Asset Stewardship team has developed an Issuer Engagement Protocol and aframework to increase the transparency of our engagement philosophy, approach,and processes. This protocol is designed to communicate with our investee
companies regarding the objectives of our engagement activities and to facilitate abetter understanding of our preferred terms of engagement.

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The factors we consider in identifying target companies include:• The size of absolute and relative holdings• The top holdings of our commingled/pooled funds• Systematic input from our active equity and fixed-income investment teams• Companies with poor long-term financial performance within their sector• Companies identified as lagging market and industry standards on ESG matters• Outstanding concerns from prior engagement• Priority themes and sectors based on an assessment of emerging ESG risks
Where there are significant and complex issues, we will undertake multiple
engagements with portfolio companies as needed. This approach allows us toefficiently prioritize our resources and engage with companies in comprehensive,
substantive meetings. In these comprehensive engagements, we focus on material,
long-term ESG issues that are relevant to the specific company. Topics of current
interest to us include:
Governance• Board and management succession planning• Board composition and effectiveness• Bribery and corruption• Corporate culture• Executive compensation• Regulatory compliance• Shareholder rights
Strategy• Capital allocation• Corporate reporting• Long-term strategy• Risk management

2021 ESG REPORT

Environmental issues• Climate change• Environmental strategy and management• Supply chain management
Social issues• Inclusion, diversity, and equity• Health and safety• Human capital management• Labor standards and human rights
Our 2022 stewardship priorities are climate change, human capital management,
inclusion, diversity, and equity and effective board leadership.
Climate change
In April 2021, State Street Global Advisors became a signatory of the Net Zero AssetManagers initiative. As part of our commitment to holding our portfolio companies
and ourselves accountable for reducing carbon emissions, beginning in 2022 wewill take voting action against companies that fail to provide sufficient disclosure inaccordance with the recommendations of the Taskforce on Climate-related Financial
Disclosures (TCFD). Further, we will continue to engage companies with a focus onunderstanding companies’ plans and progress toward long-term climate goals aswell as alignment with our expectations on this topic.
Human capital management
Human capital management is a priority for our team, especially given the context
of the pandemic and current labor market dynamics. We will leverage ourengagements to ensure that companies are aligned with our expectations on this
topic.

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Inclusion, diversity, and equity
We have elevated our long-standing focus on Inclusion, diversity, and equity byincluding race and ethnicity, and by escalating our approach to voting on this topic.
We will continue holding companies accountable for progress in our engagements
and through our updated proxy voting policies.
Effective board leadership
We value the critical role that effective boards play in keeping companies focusedon their long-term goals, whether it is climate-related targets or redefining theirapproach to human capital management. Amid the environment of an elevatedculture of shareholder engagement and broadened expectations of material risk
oversight by boards of directors, we will engage with companies and their directors
to understand boards’ approaches to providing effective oversight of an increasing
range of material issues. We will continue to hold independent board leaders
responsible via our R-Factor™ voting framework, ensuring boards manage anddisclose material industry-specific ESG risks and opportunities.
BUSINESS ETHICS

FN-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 the ordinary course of business, State Street is involved in disputes, litigation,and governmental or regulatory inquiries and investigations, both pending andthreatened. These matters, if resolved adversely against State Street, may resultin monetary damages, fines, and penalties or require changes in our businesspractices. The resolution of these proceedings is inherently difficult to predict.
We do not believe that the amount of any judgment, settlement, or other action
arising from any pending proceeding is likely to have a material adverse effecton our consolidated financial condition, or on our ability to provide the services
contemplated here.

2021 ESG REPORT

However, an adverse outcome or development in certain matters could have amaterial adverse effect on our consolidated results of operations for the period inwhich such matter is resolved or a reserve is determined to be required.
On May 13, 2021, State Street entered into a settlement with the Department ofJustice and the US Attorney for the District of Massachusetts to resolve theirinvestigation of the Company concerning the incorrect invoicing of clients for certain
expenses over an 18-year period. Under the terms of the agreement, State Street,among other things, paid a fine of $115 million, entered into a deferred prosecutionagreement, and agreed to retain an independent compliance and ethics monitor
for a term of two years. We have reimbursed most of our affected customers for
those expenses, and we have implemented enhancements to our billing processes.
In connection with our enhancements to our billing processes, we continue toreview historical billing practices and may from time to time identify additional
remediation. We continue to cooperate with the investigation by the Department ofLabor and have inquired as to the status of their review.
For further information regarding legal, governmental, and regulatory matters, or
our approach to the management of these and related issues, please see page 166of our 2021 10-K.
FN-AC-510a.1

Description of whistleblower policies and procedures
We expect all employees to promptly report any actual, attempted, or suspectedviolation of applicable laws, rules, regulations, or policies. Failing to report a
violation that one knows about is itself a violation.
For managers, this means that when one is aware of an issue relating to an
employee or contingent worker, they must 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.

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S TAT E S T R E E T C O R P O R AT I O NThere 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 Standardof Conduct — such as breaches pertaining to accounting practices, internal
accounting controls, or auditing.
The Speak Up line is operated by an independent third party. An employee canreport anonymously (except where local law does not permit), although identifying
oneself allows State Street to act as quickly and appropriately as possible.
State Street does not tolerate retaliation against anyone who reports a potential
violation in good faith. Unlawful retaliation includes negative job consequences
against any employee or contingent worker for acting upon a reasonable belief to:• Report a potential violation of company policy or applicable law• Participate in any internal or external investigation
To report an actual or possible violation of policy or law, an employee can contact:• Their manager• Corporate Compliance• Legal• Global Security• Lead director of the board (via the confidential Speak Up line)2021 ESG REPORTSOF T WARE AND IT SERVICES RESPONSE

Introduction
Our primary disclosure for the SASB frameworks is according to the guidelines of
the Asset Management and Custody guidelines. However, because of the increasing
importance of our software and IT-related services, we are continuing to respond to
the Software and IT Services guidelines as well.
E N V I R O N M E N TA L F O O T P R I N T O F H A R D WA R E I N F R A S T R U C T U R E

TC-SI-130a.1(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable
Data Center Electricity

2021

Total energy consumed

225,900.69 GJ

Percentage grid electricity

99.05%

Percentage renewable*

99.05%* In 2021, State Street purchased Renewable Energy Certificates matching the amount of all grid-purchased
electricity used by our data centers.

The above data points cover Scope 1 and 2 emissions from State Street’s onpremise data centers within our operational control. As we consider cloud services,which would be considered Scope 3 emissions, we plan to incorporate energy
implications into our decision-making.
TC-SI-130a.2(1) Total water withdrawn, (2) total water consumed, (3) percentage of each in regionswith High or Extremely High Baseline Water Stress
Data Center Water Usage

2021

Total water withdrawn

75,548 m3

Total water consumed

75,548 m3% withdrawn from water-stressed region

0%

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TC-SI-130a.3

Discussion of the integration of environmental considerations into strategic planning fordata center needs
As State Street continues to develop its information technology infrastructure andservices, we are focusing on improving the energy efficiency and environmental
footprint of our data centers. This initiative is exploring options such as addressing
zombie servers, reducing or limiting the energy required by servers, and replacing
older servers with newer technology that reduces energy demands. We are also
exploring options to provide energy to data centers that is renewable or nonpolluting such as hydrogen fuel cell technologies. This provides State Street withnot only low-carbon electricity but also adds redundancy into the electrical systemand often provides renewable energy credits, which will support our REC tradingbusiness. At the facility level, we are also replacing uninterruptible power supply
systems with more efficient systems. When siting new data centers, we consider
local temperatures and humidity conditions and seek locations that require lesscooling and dehumidification.

D ATA P R I VA C Y & F R E E D O M O F E X P R E S S I O N

TC-SI-220a.1

Description of policies and practices relating to behavioral advertising and user privacy
Beyond tracking website users (numbers, pages visited, etc.), State Street does notengage in behavioral advertising programs and does not resell user data for thirdparty purposes.
TC-SI-220a.2

Number of users whose information is used for secondary purposesNone.

2021 ESG REPORT

TC-SI-220a.3

Total amount of monetary losses as a result of legal proceedings associatedwith user privacy
In 2021, there were no fines or sanctions levied against State Street as the result oflegal proceedings associated with user privacy.
TC-SI-220a.4(1) Number of law enforcement requests for user information, (2) number of users
whose information was requested, (3) percentage resulting in disclosure
Due to the sensitive and proprietary nature of these data points, we choose not todisclose this data at this time.
TC-SI-220a.5

List of countries where core products or services are subject to government-required
monitoring, blocking, content filtering, or censoring
Due to the sensitive and proprietary nature of these data points, we choose not todisclose this data at this time.

D ATA S E C U R I T Y

TC-SI-230a.1(1) Number of data breaches, (2) percentage involving personally identifiable information(PII), (3) number of users affected
None reported in 2021.

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TC-SI-230a.2

Description of approach to identifying and addressing data security risks, including useof third-party cybersecurity standards
To learn more about our approach to data security, see [Cyber Resilience] and read
our Privacy Notice.
Our businesses depend on information technology infrastructure, both internal andexternal, to, among other things, record and process a large volume of increasingly
complex transactions and other data, in many currencies, on a daily basis, acrossnumerous and diverse markets and jurisdictions. We are working to implement
effective systems and other measures to prevent or mitigate a diverse set ofcyberthreats, and improve and adapt such systems and measures as such threats
evolve and advance.
We define technology risk as the risk associated with the use, ownership, operation,
involvement, influence, and adoption of information technology. Technology risk
includes risks potentially triggered by technology noncompliance with regulatory
obligations, information security and privacy incidents, business disruption,technology internal control and process gaps, technology operational events, andadoption of new business technologies.
The principal technology risks within our technology risk policy and risk appetite
framework include:• Third-party vendor risk
• Business disruption and technology resiliency risk
• Cyber and information security risk
• Technology asset and configuration risk
• Technology obsolescence risk

2021 ESG REPORT

We manage technology risks by:• Coordinating various risk assessment and risk management activities, including
the operational risk program managed by Enterprise Risk Management• Establishing, through the Technology and Operational Risk Committee (TORC) andTechnology and Operations Committee (TOPS) of the board, the enterprise-leveltechnology risk and cyber risk appetite and limits• Producing enterprise-level risk reporting, aggregation, dashboards, profiles, andrisk appetite statements• Validating appropriateness of reporting of information technology risks and risk
acceptance to senior management risk committees and the board• Promoting a strong technology risk culture through communication• Serving as an escalation and challenge point for technology risk policy guidance,
expectations, and clarifications• Assessing effectiveness of key enterprise cybersecurity risk and internal control
remediation programs• Providing risk oversight, challenge, and monitoring for the Global Continuity and
Third-Party Vendor Management Program, including the collection of risk appetite,
metrics and KPIs, and reviewing issue management processes and consistent
program adoption
Our cyber defense is spearheaded by our Global Cybersecurity (GCS) team, tasked
with continually improving cybersecurity by developing and evolving our security
policies and processes, upskilling our internal cyber team, performing awarenesstraining for our employees, increasing security of our systems, enriching incident
response via an intelligence driven approach, and continually testing our systems
for rigor.

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GCS establishes the framework, policies and related programs to measure, monitor
and report on cybersecurity risks, including the effectiveness of cybersecurity
program protections. GCS defines and manages the enterprise-wide cybersecurity
program. We have adopted the National Institute of Standards and Technology
Cybersecurity Framework, a set of guidelines and recommendations that combine
industry standards and best practices to help organizations manage theircybersecurity risks. GCS coordinates with Global Technology Services, business
functions, control functions, and business units to support the confidentiality,
integrity, and availability of corporate information assets.
GCS identifies and employs a risk-based methodology consistent with applicableregulatory cyber security requirements and monitors the compliance of oursystems with cybersecurity policies. Cybersecurity risk is managed as part ofour overall technology risk management as outlined above. We recognize the ofcyberattacks and have taken steps to mitigate the risks associated with them. We
have made significant investments in cybersecurity programs to leverage people,
technology, and processes to protect our systems and the data in our care.
GCS constantly improve awareness and education on managing cyber risks —for our clients and our employees. Our training includes a required annual online
course for all employees, multiple simulated phishing attacks, and regularly
updated information security awareness materials. Information Security Officers in
GCS help the business better understand and manage their cybersecurity risks.
In addition to our existing security testing capabilities, we also engage independent
third parties to perform additional validation to help us better understand theeffectiveness of our program and controls.
We have an incident response program in place that is designed to enable a wellcoordinated response to cyberattacks, then to recover from the attack and drive theappropriate level of communication to internal and external stakeholders.

2021 ESG REPORTRECRUITING & MANAGING A GLOBAL, DIVERSE, AND SKILLED WORKFORCE

TC-SI-330a.1

Percentage of employees that are (1) foreign nationals and (2) located offshore
As a global corporation serving clients in over 100 markets, we have a presence
in many countries around the world. In addition, with the growing prevalance of
remote work, we cannot provide exact figures of foreign nationals or offshore
employees at this time. Our regional breakdown is as follows:

GLOBAL HEADCOUNT AND REGION
North America

EMEA

APAC

Latin America

Employees

12,644

12,594

13,52720

Percentage of workforce

32.6%

32.5%

34.9%

0.05%

TC-SI-330a.2

Employee engagement as a percentage
Actively Engaged

Not Engaged

Passive

56%

19%

25%

Methodology

In 2021, we executed multiple pulse surveys and one larger survey to gauge
employee sentiment. Our larger survey, which had a 63 percent response rate,
was operated using Qualtrics, a third-party platform.

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In order to calculate employee engagement, we compiled an overall index scoreleveraging three questions from the larger survey: whether employees are stillconnected with our strategy, whether we’ve created an environment where they feellike they belong, and whether they take pride in their employment at State Street.
We use a 1-5 Likert agreement scale, where 1 is “Strongly Disagree,” 2 is “Disagree,” 3
is “Neutral,” 4 is “Agree,” and 5 is “Strongly Agree.” All questions contain a “N/A” option.
We categorize “Strong Disagree” and “Disagree” as unfavorable, “Neutral” as neutraland “Agree” and “Strongly Agree” as favorable.
Actively engaged: calculated by counting the number of favorable responses
divided by the total number of responses.
Passive: calculated by counting the number of neutral responses divided by the
total number of responses.
Not engaged: calculated by counting the number of unfavorable responses divided
by the total number of responses.
The survey includes 64 Likert scaled questions and two open-ended questions:
We compared the results of the survey to a set of external benchmarks that is acomposite of over 16 million employee responses worldwide, including 3.1 million
from the finance and insurance industry. When compared, State Street is scoring well
above the benchmark on the Conduct & Compliance items. The below table captures
the highlights of State Street’s high-scoring conduct and compliance questions:
Conduct & Compliance

Unfavorable

NeutralFavorable

My manager treats me with fairness
and respect.

4%

9%

87%

We learn from mistakes when they occur.

6%

10%

85%

I can report unethical practices without
fear of reprisal.

4%

14%

82%

2021 ESG REPORT

When asked their opinion on the question: I am satisfied with the actions State Street
is taking to be socially and environmentally responsible (e.g., minimizing carbon
footprint and supporting community organizations/charities), only 6 percent of survey
respondents disagreed, with 70 percent of responses being favorable and 24 percent
with neutral responses.
TC-SI-330a.3

Percentage of gender and racial/ethnic group representation for (1) management,(2) technical staff, and (3) all other employees. Please describe your organization’s (1) policies
and (2) programs for fostering employee representation across its global operations
GLOBAL GENDER GROUP REPRESENTATION:
FemaleMale

Not Disclosed/Available

Administrative Staff

94%

5%

1%

Technical Staff

30%

69%

0%

All Other Employees

48%

52%

0%

US RACIAL/ETHNIC GROUP REPRESENTATION:

White

Hispanicor Latino

AmericanIndianor Alaska
NativeNativeHawaiianor Other
Pacific Islander

Not
Disclosed/
Available

1%

73%

9%

1%

0%

2%

3%

1%

48%

2%

0%

0%

5%

6%

1%

67%

5%

0%

0%

3%

Asian

Black orAfricanAmericanTwo orMore
Races

Administrative Staff

4%

11%

Technical Staff

40%

All Other
Employees

17%

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For more information regarding State Street’s approach to inclusion and diversity,
including our policies and programs for fostering equitable employee representation
across our global operations, see [Inclusion, Diversity and Equity].
I N T E L L E C T UA L P R O P E R T Y P R O T E C T I O N A N D C O M P E T I T I V E B E H AV I O R

TC-SI-520a.1

Total amount of monetary losses as a result of legal proceedings associated with
anticompetitive behavior regulations
There were no monetary losses as a result of legal proceedings associated with
anticompetitive behavior regulations in 2021.

M A N A G I N G S Y S T E M AT I C R I S K S F R O M T E C H N O L O G Y D I S R U P T I O N S

TC-SI-550a.1

Number of (1) performance issues; (2) service disruptions; (3) total customer downtime
State Street did not experience performance issues, service disruptions or
customer downtime during 2021 at a level of severity to be reported for these
purposes. State Street operates a high-quality set of information technology service
management processes aligned to industry standards for incident management,
problem management, change management, and other related areas. In addition,
continuity of both business processes and technology processes is governedby formal policies including, but not limited to, continuous testing to ensure
effectiveness.
TC-SI-550a.2

Description of business continuity risks related to disruptions of operations
The core of State Street’s approach to business continuity lies in its commitment
to redundancy, resiliency, and security and a robust program of stress testing thesystems we use.

2021 ESG REPORTOur computer, communications, data processing, networks, backup, business
continuity, disaster recovery, or other operating, information or technology systems,
facilities, and activities may suffer disruptions or otherwise fail to operate properly
or become disabled, overloaded, or damaged as a result of a number of factors,
including, without limitation, events that are wholly or partially beyond our control.
This could adversely affect our ability to process transactions, provide services,or maintain systems availability, maintain compliance and internal controls, orotherwise appropriately conduct our business activities.

ACTIVITY METRICS

TC-SI-000.A(1) Number of licenses or subscriptions, (2) percentage cloud-based
State Street has no licenses or subscriptions where it serves as the software-as-aservice (SaaS) provider in production.
TC-SI-000.B(1) Data processing capacity, (2) percentage outsourcedState Street uses many different platforms to meet its technology needs. Opensystems (i.e., UNIX, Windows, Linux) make up the largest quantity of our physicalservers. In 2021, our systems averaged 288,000 million instructions per second(MIPS). The data provided should be considered within the State Street context andis not directly comparable to other firms’ figures. It should also be noted that thedata does not represent 100 percent of State Street servers, but represents theopen system servers under our responsibility.

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TC-SI-000.C(1) Amount of data storage, (2) percentage outsourcedState Street recently reassessed our data storage reporting, aligning metrics tobetter reflect the way storage is deployed and managed in our environment.
As of the end of December 2021, total allocated storage capacity was approximately:• 28 petabytes Storage Area Network (SAN) – providing shared pool of highperformance to server infrastructure• 8 petabytes Network Attached Storage (NAS) – file storage architecture sharedacross network and users• 4 petabytes Content Addressable Storage (CAS) – fixed-format storagearchitecture used primarily to address compliance requirements for data retention• 2 petabytes Object Storage – cloud-based storage primarily used for
unstructured data
Due to our dependence on technology and the important role it plays in our business
operations, we must persist in improving and updating our information technology
infrastructure, among other things, (1) as some of our systems are approaching theend of their useful life, are redundant, or do not share data without reconciliation;(2) to be more efficient, meet client expectations and support growth opportunities;and (3) to enhance resiliency and maintain business continuity.
For example, there could be sudden increases in transaction or data volumes,
electrical or telecommunications outages, natural disasters, cyberattacks, or
employee or contractor error or malfeasance. We may not successfully prevent,respond to, recover from, or learn from any such disruptions or failures, so we
continue to improve and update our information technology infrastructure.

2021 ESG REPORT

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2021 ESG REPORTS TAT E S T R E E T 2021 E S G R E P O R T - A P P E N D I X

TA SK FORCE ON
CLIM ATE- REL ATEDFIN A NCI A L
DISCLOSURE S
REP OR T

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INTRODUCTION
We believe that climate change presents material risks and opportunities thatcompanies 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 to providing visibility
into our own activities regarding how we approach and manage issues related toclimate change.
Since 2017, State Street Corporation has supported the mission and objectives of
the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD was
set up in 2015 by the Financial Stability Board to develop voluntary and consistentclimate-related financial risk disclosures for companies to provide to their investors
and other stakeholders. The TCFD reporting principles cover four main areas:
governance, strategy, risk management, and metrics and targets. This reportprovides an update on State Street’s progress across these four areas.

GOVERNANCE
In 2018, State Street’s board of directors took on responsibility for oversight ofmaterial ESG issues including greenhouse gas (GHG) emissions and climate-relatedrisks. State Street’s overall corporate responsibility efforts are overseen by the
Executive Corporate Responsibility Committee (ECRC), which reports to the boardof directors at least once per year. The ECRC is charged with setting our corporate
responsibility strategy, monitoring issues and practices related to our material ESG
issues, and promoting and facilitating communication about our ESG activities. The
ECRC has also been charged with supporting State Street’s responses to TCFD and
the European Union’s Directive on Non-Financial Reporting.
On March 31, 2021, Rick Lacaille was appointed to serve as global head of ESG
to lead and coordinate ESG efforts across the firm as we work towards a wellcoordinated and optimized approach to our ESG policies, products, initiatives, andthought leadership.

2021 ESG REPORTHe works across business lines to fully leverage ESG capabilities stemming froma range of areas at State Street. Rick also acts as chair of the ECRC, which iscomprised of representatives from across the corporation, including Global Realty,
Procurement, Global Technology Services, Human Resources, Risk Management
and more.
In 2021, the Risk Committee of the board of directors added responsibility forthe risk management components (including climate risk) of State Street’s ESG
obligations, initiatives, and activities to its mandate. State Street’s climate risk
management efforts are overseen by the Management Risk and Capital Committee(MRAC), which is the senior oversight and decision-making body for financial risk
and capital and liquidity management, and which oversees the firm’s managementof climate risks and climate risk regulatory requirements. A dedicated Climate Risk
Working Group provides oversight for the development of risk identification, risk
assessment, and scenario analysis.
CLIMATE RISK GOVERNANCE STRUCTURE

Executive Corporate Responsibility Committee
Corporate Responsibility Leadership

Full Board
ESG Strategy and Policy• Oversight of material ESG issues
including climate change

Risk Committee of the Board
Climate Risk Responsibility• Oversight of risk management
components (including climate risk)of State Street’s ESG obligations,
initiatives, and activities

Management Risk and Capital Committee
MRAC• Oversight of management of climate
risks and climate risk regulatory
requirements• Reports to the Board of Directors at least annually• Charged with setting corporate responsibility
strategy, executing programs and initiatives, andmonitoring progress of programs• Oversight for State Street’s response to TCFD and
the European Union’s Directive on Non-financial
Reporting

Climate Risk
Working Group

Business Unit ESG
Working Groups• Development of climate risk
measurement framework/guidelines• Oversight of product-level ESG
initiatives• Ongoing review of frameworks toalign with market/regulatory
developments

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From the investment side, State Street Global Advisors’ ESG investments team also
regularly reports on its climate change-related activities, including stewardshipefforts and corporate engagements, to State Street Global Advisors’ chief
investment officer and chief executive officer, as well as State Street’s board of
directors. In 2021, State Street announced the appointment of Karen Wong, whojoined State Street Global Advisors in the newly created role of global head of ESG
and sustainable investing. As noted previously, State Street’s board of directors
has explicit oversight responsibilities for climate change as described in the Risk
Committee’s Charter. State Street’s board and senior management receive regular
reports on ESG matters, including climate change, from internal groups including
the ESG investments team.
We find that the TCFD’s guidance on climate-related disclosure is the mosteffective framework that companies can leverage to help inform strategies toplan for climate-related risks and make their businesses more resilient to theimpacts of climate change. In addition to our own progress incorporating the TCFD
principles, our asset stewardship team within Global Advisors engages regularly
with their portfolio companies on how they are addressing climate change within
the framework of the TCFD principles. In early 2022, State Street Global Advisors
adopted a proxy voting guideline encouraging the adoption of TCFD disclosure
recommendations in the following areas:• Board oversight of climate-related risks and opportunities• Total Scope 1 and Scope 2 GHG emissions• Targets for reducing GHG emissions
If a company fails to adequately meet our expectations, State Street Global Advisors
may vote against the independent board leader. We view this policy as a natural
escalation of our previously stated expectations on climate-related disclosureand history of supporting TCFD-based disclosures through proxy voting andengagement.

2021 ESG REPORTS T R AT E G Y
Climate change has the potential to impact State Street across many parts of ourbusiness, including through the value of the investments on our balance sheet, thelocations in which we operate, and the financial condition of our clients.
We incorporate climate change into our business strategy and planning in thefollowing ways:
As a corporation• Assessing climate-related risks and opportunities on our balance sheet. We evaluate
the impacts of climate-related factors on the assets we invest in on our own
balance sheet to avoid the negative near- and long-term impacts of climatechange and to ensure that we are prepared to invest our balance sheet in assetsthat align with our climate change goals over our investment horizon. Over the
past year, we have better incorporated ESG considerations into the managementof our balance sheet by furthering our understanding of the impacts of climate
risks on the assets on our balance sheet, starting the process of developing
a framework to issue a sustainable bond, and creating ESG guidelines for ourinvestment portfolio and lending businesses.
• Protecting the resiliency of our physical infrastructure. Our business depends upon
maintaining a robust and resilient physical infrastructure across our global
locations that can handle the impacts of a changing climate. We incorporate
potential climate impacts in our business continuity planning to ensure we areresilient to climate events, and consider longer-term climate patterns in our
location strategy and for their impact on our ongoing operational resiliency.

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S TAT E S T R E E T C O R P O R AT I O N• Transitioning to a low-carbon economy. In 2017, we publicly committed to sciencebased reduction targets for our carbon emissions. In 2020, we surpassed our 2025
target of 30 percent reductions, and have set a new goal of 27.5 percent reduction
by 2030, as measured against the 2019 baseline year. This 2030 goal is in line with
the Science Based Targets initiative’s “well-below 2⁰ C” methodology. While State
Street has exceeded our target reduction for 2021, as conditions revert from thecurrent work-from-home and hybrid environment to higher office occupancy, thisnew target remains appropriate.
• Supporting client needs around climate risk management. As a custodian of andservice provider for client assets, we are committed to providing our custodyclients with information that enables them to assess the climate change riskspresent in their portfolios and thereby enable them to assess their risk exposures
today and in the future, fulfill their own TCFD goals, and comply with any relevant
disclosure or regulatory requirements.
As a global custody bank, it is our fiduciary duty to act solely in accordance with
explicit instructions received from clients. The assets held by custody banks belong
to their clients and are fully segregated from the bank’s assets. Custody banks
provide services to their clients as directed agents and do not have discretionover assets. In addition, custody bank balance sheets are distinct from those ofother banks with different business models, and are built around client deposits
derived from the provision of safekeeping and asset administration services, which
represent a stable source of funding, whose value is monetized via the purchaseof large and well-diversified portfolios of high-quality and appropriately termed
investment assets. In our role as a custody bank, we do not engage in extensive
retail, commercial, investment banking, and capital markets operations.

2021 ESG REPORTAs an asset manager• Provide our asset management clients with information that helps them to assess
the climate change risks present in their portfolios and thereby enables them tofulfill their own TCFD goals or obligations.
• In our ESG strategies, we are committed to combining our ESG data and analytics
capabilities with traditional financial information when developing our investment
practitioner perspective to create a new generation of ESG solutions.
• We are a large-scale fiduciary manager of assets, whose value may be affectedby direct and indirect climate change impacts as well as the transition to a lowcarbon economy. We believe exposure to these transition risks can directly impact
the ability of those assets to generate long-term value. While our clients ultimately
bear the risks of climate change in their portfolios, we are committed to helping
them identify these risks and offering them ESG/climate investment solutions
that can address these risks. Furthermore, our R-FactorTM scoring methodology
leverages the Sustainability Accounting Standards Board’s materiality framework
to ensure our investment decisions are based only on the financially material andindustry-specific ESG issues facing each company.
State Street Global Advisors will be releasing its own TCFD report later in 2022.
When available, it will be linked from www.statestreet.com/cr.

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S TAT E S T R E E T C O R P O R AT I O NRISK MANAGEMENTState Street’s approach to risk involves all levels of management, from the board
and its committees to each business unit and each employee. Responsibility for risk
oversight is allocated so that risk decisions are made at an appropriate level, andare 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) the business units, which own and manage the risks inherent in their business,are considered the first line of defense; (2) Enterprise Risk Management and othersupport functions, which provide the second line of defense; and (3) Corporate audit,
which assesses the effectiveness of the first two lines of defense. State Street’s risk
framework accounts for the impacts of climate event risk on our operational risk
and resiliency, but as a global financial institution that provides services to clientsand counterparties across the world, climate change has the potential to impact usmuch more broadly, including through the strategic positioning of our business, thevalue of the investments on our balance sheet, the locations in which we operate,
the financial condition of our clients, our global regulatory obligations, and our
reputation in the market.
CLIMATE RISK QUADRANTS

1

Direct Financial

Operational Resiliency• Balance sheet and loan book

• Impacts on our locations andability to provide services• Identification/qualification ofassets with direct exposure toclimate risks

2• Identification of exposure areas
and risk mitigation

CENTRALO V E R S I G H T,
GOVERNANCE,ANDC O O R D I N AT I O N

3Product

Disclosure• Controls, standards, monitoringfor climate-related products and‘green’ designations• Oversight of consistency,
accuracy and meeting of
public commitments

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

4

2021 ESG REPORT

Risk identification
Because risks evolve over time, risk identification is an iterative activity that
includes inputs across the first, second, and third lines of defense. State Street has
an established process underpinning its identification of material risks to the firm.
The Material Risk Identification (MRI) process, which utilizes a bottom-up approach
to identify our most significant risk exposures across all on- and off-balance-sheet
risk-taking activities, is designed to consider risks that can have a material impact,irrespective of their likelihood or frequency. The resulting inventory of material risks
is organized into State Street’s Top Risk Framework depicted below:

Risk Themes

TOP RISK FRAMEWORKFINANCIAL RISKS

NON-FINANCIAL RISKS

Investment portfolio
mark-to-market risk

Operational risk

Strategic risk

Technology and resiliency risk

Model riskCore compliance risk

Investment management risk

Risks

Interest rate risk
Trading risk
Credit risk
Liquidity risk

R E P U TAT I O N A L R I S K

BUSINESS RISKS

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Climate change risks can impact our top risks through the primary transmission mechanisms depicted below:

Top Risk

Financial
Risks

Transmission Mechanism
Mark-to-Market• Physical and transition risks may impact the value of assets in which we invest

Interest Rates• Climate risks may impact the interest rate environment and interest rate differentials
between various countries based on climate factors

Trading• Physical and transition risks may impact the value of assets in which we make markets

Credit• Counterparties may be impacted by climate risks, impacting their creditworthiness.
Similarly, the value of collateral held by State Street could be impacted by climate risks• 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

Liquidity

Operational

Non-Financial
Risks

Technology &Resiliency• Climate risks may result in declines in client assets, resulting in lower levels of client
deposits on our balance sheet• Increasing frequency or severity of climate-driven events may disrupt our operations,leading to a higher potential for operational errors or losses• Climate issues could impact risks through operational disruptions, data center outages,
faster/slower recovery from intense storms• Increasing frequency or severity of climate-driven events may disrupt our criticaloperations, damage physical assets, or impact our third-party ecosystem across ourglobal operations• Regulatory sanctions or material financial impacts may result from failures to comply withapplicable laws, regulations, or internal policies and proceduresCore Compliance• Climate-related liabilities or litigation may increase in light of growing requirements
around climate disclosures•Failures to adapt and respond to changes in the regulatory or market environments incountries in which we operate may constrain our ability to compete with peers

Strategic

Business
Risks• Inability to provide best-in-class climate risk-related products and services may impact
fee revenues by resulting in a less competitive product offering

Model

Investment
Management

Reputational• Mismanagement of physical and transition risks by our clients may result in declining
levels of assets under custody or administration, leading to reductions in our fee revenues• Lack of historical experience with climate change risks may result in greater model
uncertainty or mispricing of climate risk impacts• Mismanagement of physical and transition risks by our clients may result in declining
levels of assets under management, leading to reductions in our fee revenues• Lack of ability to offer competitive climate funds to clients may result in a loss of clients ormarket share and a reduction in fee revenues• Increasing stakeholder focus on corporate behavior with regard to climate stewardshipand failures to meet these expectations may lead to increased reputational risk that drives
a loss of clients, employees, or investors

2021 ESG REPORTIn 2021, in recognition of a growing understanding of the potential impacts ofclimate risks, the MRI process resulted in the establishment of climate risk —including the risks of adverse impacts on our balance sheet, our operations, or our
strategic position caused by climate events or changing climate patterns or by the
impacts of transitioning to a low-carbon economy — as a material strategic risk
for State Street. In 2022, State Street utilized the MRI process approach to more
completely assess the impact of key climate-related drivers on its broader inventoryof material risks.
Identification of significant climate-related drivers was facilitated through a bottomup approach involving a series of structured global workshops across State Street’smajor business units and functional areas. The workshops, which included seniorbusiness unit and control function executives, had the goal of identifying impactful
climate-related risk drivers and understanding their transmission mechanisms forState Street. Workshop discussions were supported by educational materials on
types of climate risk, climate scenarios, risk transmission channels, and climatespecific market and regulatory developments. See the full process illustrated below.
INPUTS

Market risk
exposures
Credit risk
exposures

BUSINESS UNITRISK ASSESSMENTRISK INVENTORY
MAPPING

Business-specificbackground materials
and open questions

Climate driver mapping
to corporate material
risk inventory

Global business
units workshops(8 workshops)

Business unit
climate risks
Key climate
risk drivers

GOVERNANCE REVIEW

Climate Risk
Working GroupMRAC

Liquidity profile
Products
Clients
Processes
Businessstrategy

Climate Risk
Management
Framework

Climate risk
scenarios

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

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S TAT E S T R E E T C O R P O R AT I O N

Key climate risk drivers identified through this process were organized around four
key themes – market, operational, strategic, and regulatory – with their impacts
mapped to individual material risks across State Street’s Top Risk Framework
categories. See table below.
RISK SOURCERISK DRIVER

TIMEFRAME
Short

MarketAcute climate event
impacting ourcounterparty(s)XMarket repricing ofclimate risk

X

Secular declines in regional
economies or sectors

Operational

X

Resiliency of criticaloperations to climate risks

X

X

Climate model risk

X

X

Climate data availability

X

X

Sustainability concerns
around our clients oroperational footprint

Strategic

Regulatory

Long

X

Making and meeting climate
commitments

X

X

Internal consistency ofclimate commitments

X

X

Green product strategy/
design

X

X

Misselling/improper
disclosures

X

Misaligned climate strategies
across business lines

X

Meeting our regulatory
obligations

X

X

TOP RISK T YPEFinancial

NonFinancial

Business

Reputational

2021 ESG REPORTTransmission channels to the Top Risk Framework were further differentiated to provide
a more granular view of climate-related impacts to State Street’s top risks, theirsignificance, and their relevance to short- and long-term time horizons. See table below.

Top Risk
Investment Portfolio
Mark-to-Market Risk

Trading Risk

Climate Risk Driver(s)• Decline in market sectors• Market repricing of climate risks, includes for specificsectors or more broadly• Market repricing of climate risks, includes for specificsectors or more broadly• Climate event impacts to credit counterparties

Credit Risk

• Market repricing of climate risks, includes for specificsectors or more broadly• Secular declines in sector or geographies

Liquidity Risk

Technology & Resiliency Risk

• Market repricing of climate risks, includes for specificsectors or more broadly• Drop in deposits from climate impact to client businessmodels• Acute physical climate events• Chronic physical climate risk trajectories• New/divergent regulatory obligations

Business Conduct & Compliance• Making and meeting climate commitments• Green product misselling and disclosures• Secular declines in sector or geographies

Strategic Risk

• Ineffective green product strategy or design• Misaligned climate strategies across business lines

Model Risk

• Climate model risk, including lack of data, agreed
methodologies and inherent climate modelinguncertainties• Making and meeting climate commitments

Reputational Risk

• Internal consistency of climate commitments• Green product misselling and disclosures• Misaligned climate strategies across business lines

Short TermLong Term

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S TAT E S T R E E T C O R P O R AT I O N

Risk assessment
All assets, physical or financial, have some level of inherent risk from the impacts ofclimate change. However, the risks of financial loss from those assets are driven by
the residual risk that remains after asset-specific characteristics and risk mitigants
are taken into account. See the illustrative diagram below.

INHERENT RISKSSTRONG PROTECTION

SMALL RESIDUAL RISKINHERENT RISKSWEAK PROTECTIONLARGE RESIDUAL RISKClimate change risks to our physical assets
To understand our operational vulnerabilities related to climate or environmental
factors, we regularly evaluate the risks of climate change. 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.
We are committed to protecting our clients from any service interruptions including
those related to climate change, in addition to taking responsibility for mitigating ourown climate impacts.

2021 ESG REPORTThe potential impacts addressed in our business continuity and disaster recovery
strategies include:• The loss of, or temporarily restricted access to, buildings or operations• The loss of, or damage to, technology and operations infrastructure• Business, operations, or technology impacts to employees because of severe weather
Our building, operations, and technology teams also use this approach when
exploring potential new business locations. If a property is in an area that has
a higher risk of climate change effects, we conduct due diligence to assess therisks for our operations. In addition, we implement appropriate infrastructure tosafeguard against any business interruptions that could occur due to climaterelated events. This approach forms the foundation for assessment of the longerterm risks of climate change on our operational resiliency through the mapping ofown key locations, infrastructure, and third parties against the critical services weprovide for clients. See illustrative mapping below.
E N D -T O - E N D P R O C E S S M A P
S TAT E S T R E E T

Acute Risk

Flood risk,
ensure adequate
preparation

Chronic Risk
Location 1

Risk of sea levelrise, consider
office location
strategy

Location 2

Location 3

T H I R D PA R T I E S A N D
INFRASTRUCTURE

Acute Risk
Chronic Risk
Location 1(data center)

Location 2(financial market utility)

Risk of water
stress, consider
impact on
service provision

Location 3(third party)

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S TAT E S T R E E T C O R P O R AT I O NSome of the steps we have taken or will consider taking to mitigate climate-relatedrisks to our infrastructure include:• Locating critical infrastructure on higher floors of buildings• Adapting business continuity plans to include scenarios of extreme weather incidents• Embracing innovative approaches to energy efficiency• Instituting flexible commuting options for employees
We are currently assessing the potential of climate-related scenario analysis as a tool
to inform our decision-making regarding our existing locations, including evaluating
the potential impacts to our building critical systems as a result of certain climate
scenarios, including sea level rise under a 3.6⁰ C and a 1.5⁰ C scenario, as well as
evaluating potential severe weather event impacts and water stress resulting fromthe effects of climate change in the medium to long term.
We also include the evaluation of climate-related event risks in our Operational
Risk scenario analysis program, where such events are incorporated as part of ourevaluation of potential operational risk losses.

Climate change risks to our financial assets
Climate risk-related impacts on financial assets are influenced by key factors that
protect against financial loss including:
FactorRationale

Asset Class

Asset characteristics may increase or decrease inherent climate risk

Credit Quality

Counterparty credit quality is a key determinant of an entity’s ability to withstand business fluctuations and will
provide the same level of ability to withstand impacts from climate change. Conversely, a poorly rated entity may
have limited ability to withstand the financial impacts of climate change

Tenor

Many climate risk impacts compound over time. Major impacts are less likely in the near term than in themedium or longer term. Therefore, shorter-duration assets protect us from longer-term risks and allow us toreposition as we continuously evaluate changing climate conditions

Diversification

Climate risk impacts can vary broadly, resulting in winners and losers across and within geographies andindustries. Diversification of our balance sheet across and within geographies and sectors may help mitigate theimpact of climate risks

Insurance

Some assets are insured against some of the physical risks of climate change, though the availability and cost of
insurance are of key concern as the market becomes more sophisticated in its pricing of climate-related risks

2021 ESG REPORT

Balance sheet risk assessment
We have assessed each asset type on our balance sheet against its inherent andresidual risk profiles. Based on the composition of our balance sheet, we have
limited pockets of direct exposure to climate risk. Upon further analysis, we believethat the risk of financial loss from climate change-related impacts to the assets
on State Street’s balance sheet is currently limited and well-managed through ourexisting risk management framework.

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S TAT E S T R E E T C O R P O R AT I O NState Street Portfolio

Exposure1

Inherent Risk

Structural Protections

Residual Risk

Agency MortgageBacked Securities
(MBS)

$38B

Medium – Real estate,and by extension
mortgages, are at risk
due to extreme weather• High credit quality of senior tranches

Very low• Significant diversification bygeography and obligor• Government agency guarantee• Insurance coverage

Commercial Mortgage- $13B
Backed Securities(CMBS)

Asset-Backed
Securities (ABS)$13B

Sovereigns,
Supranationals andNon-U.S. Agencies$43B

Commercial Real
Estate (CRE)$3B

Corporate Bonds

1$4B

Leveraged Loans$4B

Municipal Bonds$1B

Municipal Finance

<$1B

Funds

$20B

As of December 31, 2021

Medium – Real estate,and by extension
mortgages, are at risk
due to extreme weather• High credit quality of senior tranches

Low – ABS typicallyconsumer andunconnected to a
specific climate risk

• High credit quality of senior tranches

Medium – These
entities are generally
large and have highly
diverse income streams• High credit quality

High – CRE represents
a highly concentrated
investment in a physicallocation, which is at risk
due to extreme weather• Seniority of loans

High – Corporates are
more highly leveraged
than other investments
and have complex
exposures• Seniority of loans

Medium – Municipals
are concentrated ina single location andvulnerable to extreme
weather• High credit quality

MediumLow – Many funds
have low leverage andare typically highly
diversified• Diversification

Low

Very low• Significant diversification bygeography and obligor• Insurance coverage
Very low• Significant diversification bygeography and obligor

Very low/low• Exposure primarily to countries
focused on management of climate
risks
Medium• Low loan to value• Insurance against extreme weather
and flood when necessary

Medium

• Short tenor of exposures• High credit quality• Short tenor of exposures2021 ESG REPORT2019 Material Topics

PHYSICAL RISKHIGHMEDIUM

CRE

LOW

VERY
LOW

AgencyMBS and CMBS

Sovereigns,
Supernationals,
and Non-U.S.
Agencies

Municipal Bonds
and Municipal FinanceCorporate Bonds
and Leveraged Loans

Funds
ABS

VERY LOWLOW

MEDIUM

HIGH

TRANSITION RISKIn 2021 and 2022, we prioritized risk assessments of the portfolios identified ashaving direct exposure to climate-related risks, developing structured, qualitative
counterparty-level assessment templates for each of the following asset classes:
corporate bonds, leveraged loans, municipal finance, and commercial real estate.
The assessments were supported by relevant external data and subject matterassessments of key climate factors driving risks for assets in these portfolios ata counterparty-specific level. As of Q1 2022, assessments had been completed
for approximately 20 percent of exposure across the targeted portfolios, with theassessments so far indicating relatively limited exposure to climate-related risks andstrong risk mitigation where such risks exist. On an ongoing basis, the climate risk
assessment template will be incorporated in onboarding due diligence requirements
and annual assessments of counterparties.
Over the past year, State Street also enhanced its methodology to assess countrylevel climate risks, incorporating both physical and transition risk metrics into amodel to assess the relative sovereign and supranational risk exposure based on
factors such as vulnerability to natural disasters, emissions intensity, and reliance on
fossil fuel rents.

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S TAT E S T R E E T C O R P O R AT I O NThis model was used to assess country-specific climate risks for the sovereigns,
supranationals, and non-U.S. agencies portion of the investment portfolio and,separately, for the remaining investment portfolio assets based on their country of risk.
Modeled results include full coverage of the sovereigns, supranationals, and nonU.S. agencies exposures and approximately 95 percent coverage for the remainderof the portfolio. Based on these country-specific risk assessments, the majority of
the assets in our investment portfolio are in countries with relatively low climaterelated risks. The results are shown in the table below.

Country Climate
Risk Classification

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

All Other Investment
Portfolio Assets

Low

95.5%

99.6%

Medium

4.0%

0.3%

High

0.5%

0%

Very High

0%

<0.1%

Carbon intensity
For the publicly traded companies in our investment portfolio, where available, wemonitor the carbon intensity of our portfolio relative to the index average for the
S&P 500. Our analysis covers approximately 96 percent of the corporate bonds in
our investment portfolio, and, overall, the State Street portfolio is more carbon
intensive than the index. While State Street’s portfolio has a lower carbon intensity
than the index on a per-sector basis, our higher overall carbon intensity is driven by
our higher concentration in high-quality, liquid securities, pursuant to the objectivesof a bank investment portfolio. Carbon intensity is measured as tons of CO2 per
million dollars of revenue.

Weighted Average
Carbon Intensity1

S&P 500

State Street

1871

292

Sourced from S&P at https://www.spglobal.com/spdji/en/indices/equity/sp-500/#data (accessed March 17, 2022)

2021 ESG REPORTWe also conduct assessments of second-order risks in our portfolio by assessing
the preparedness of companies to whom we provide credit facilities through ourFund Finance business to manage their own climate-related risks.
Clients are assessed across various dimensions of their commitment to theelements of TCFD, 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 64 percent of our
exposure is to clients who perform very strongly across these key dimensions.
We are currently planning for the incorporation of climate-related scenario analysis
as a tool to understand the risks of various climate scenarios on our balance sheet
and broader financial risk profile, focusing on the ‘hot house world’ and ‘disorderly’
scenarios developed by the Network for the Greening of the Financial System. The
risk identification and assessment work completed in the past year will allow us to
explore the impacts of these scenarios on our physical and transition risk drivers.

Investment risks related to climate change
At State Street Global Advisors, we believe climate change poses a systemic risk to
all companies in our portfolios. Managing climate-related risks and opportunities
is a key element in maximizing long-term risk-adjusted returns for our clients. As aresult, we have a long-standing commitment to enhance investor-useful disclosurearound this topic. We encourage our portfolio companies to report in accordancewith recommendations of TCFD, which we first endorsed in 2017.
As part of our commitment to holding our portfolio companies and ourselves
accountable for reducing carbon emissions, we became a signatory of the Net
Zero Asset Managers initiative in April 2021. This initiative comprises asset
managers currently representing $37 trillion of assets under management andwas formed to galvanize the industry to commit to a goal of net-zero emissions
by 2050 or sooner. We believe this initiative reflects our long-term commitment
to considering material risks and opportunities related to climate risk within ourclients’ portfolios.

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S TAT E S T R E E T C O R P O R AT I O N

However, setting a goal is just the first step and our research shows that integrating
fundamental risks surrounding climate change is prudent for investors — especiallyas companies manage the transition to a lower-carbon economy. Therefore, as a
global investor, we aim to create meaningful progress over time by using our voice
and vote to highlight the materiality of climate change to our portfolio companies.

Engagement with portfolio companies
We engage with companies to understand their approaches to mitigating andmanaging the physical and transitional impacts of climate change. Since 2014, wehave engaged with more than 900 companies across multiple industries on climaterelated issues. Our engagement approach leverages the four dimensions of the
TCFD framework: governance, strategy, risk management, and metrics. We expect
companies to disclose their approach to identifying climate-related risks and the
management policies and practices that are in place to address such issues.
In November 2020, State Street Global Advisors became a signatory to Climate
Action 100+, a global initiative led by investors to foster the clean energy transition
by engaging the companies and sectors with the highest greenhouse gas emissions.
Climate Action 100+ and State Street have long been aligned in our shared values.
The Climate Action 100+’s three central goals are consistent with what our teamadvocates through our company engagements, thought leadership, and proxyvoting. The three goals are: 1) improve governance of climate change, 2) reduce
emissions, and 3) strengthen climate-related disclosure.

Proxy voting
State Street Global Advisors has publicly supported the global regulatory efforts
to establish a mandatory baseline of climate risk disclosures for all companies.
Until these consistent disclosure standards are established, we find that the TCFD
framework is the most effective framework by which companies can develop
strategies to plan for climate-related risks and make their businesses more
resilient to the impacts of climate change. As such, State Street Global Advisors has
implemented the following proxy voting guidelines:2021 ESG REPORT

Starting in the 2022 proxy season, we will begin taking voting action againstcompanies in the S&P 500, S&P/TSX Composite, FTSE 350, STOXX 600, and ASX 100
indices if companies fail to provide sufficient disclosure in accordance with the TCFD
framework, including disclosure of the following:• Board oversight of climate-related risks and opportunities• Total Scope 1 and Scope 2 GHG emissions• Targets for reducing GHG emissions

M E T R I C S A N D TA R G E T S
Transparency and disclosure regarding climate metrics is critical to achieving theobjectives of the TCFD framework. We continue to actively work with TCFD, otherasset managers, climate data providers, and industry associations to achieveconsensus on the climate metrics that we and the companies we invest 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 toensure advancement in measuring and monitoring our progress against bothunderstanding and controlling for the climate risks which may impact State Street.
KRIs being implemented are comprised of metrics showing our movement bothin mapping our key exposures and tracking those exposures determined to havegreater direct connection to climate-related risk drivers.
We also believe that further clarity regarding metrics, including warming scenariosand carbon pricing scenarios, will significantly accelerate the adoption andimplementation of the TCFD principles and meaningfully increase transparency
around the investment risks and opportunities that climate change presents.

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S TAT E S T R E E T C O R P O R AT I O NGREENHOUSE GAS EMISSIONS (METRIC TONS C02E)

D I R E C T A N D I N D I R E C T G H G E M I S S I O N S ( S C O P E S 1, 2 , A N D 3)

CO2e Emissions (Metric Tons)

2021

2020

2019

2018

CO2 Direct

4,427

4,993

6,582

7,335

CH4 Direct

11.52

12.89

16.90

17.13

N20 Direct

2.71

2.92

3.73

4.60

HFCs Direct

2,268

2,411

2,340

2,458

Total Direct (Scope 1)

6,709

7,420

8,943

9,814

0

1.42

4.39

4.50

Total Indirect (Scope 2)

56,98767,04975,72878,678

Total Indirect (Scope 3)

11,05637,48890,872

95,888

Total GHG Emissions

74,752111,956

175,543

184,380

2021

2020

2019

2018

2.08

1.85

2.02

2.21

Biogenic CO2

GHG INTENSIT Y

GHG Emissions Intensity Ratio

Carbon Dioxide (CO2), Methane (CH4),
Nitrous Oxide (N2O)

List of Included Gases

GHG REDUCTION

Total GHG Reductionsin Metric Tons CO2
Equivalent

Denominator

2021

2020

2019

2018

Emissions Reduced:
Direct (Scope 1) andIndirect (Scope 2)

1,336

1,025

1,333

1,652

2021 ESG REPORTE N E R GY U S E

T O TA L I N T E R N A L A N D E X T E R N A L E N E R G Y C O N S U M P T I O NConsumption by Fuel Type

UNIT

2021

2020

2019

2018

Natural Gas

GJ

77,47389,266

119,054

132,695

Diesel

GJ

5,273

4,785

5,308

5,960

Total Direct Energy

GJ82,746

94,051

124,361

138,655

Electricity

GJ

684,706

753,866

807,157

815,297

Heating

GJ

23,298

26,11339,222

34,608

Cooling

GJ

7,777

5,261

4,865

3,459

Total Indirect Energy (Scope 2)

GJ

715,782785,240

851,244853,365

Business Travel (Non-Renewable)

GJ

13,162

29,788

126,798

202,454

Total Indirect Energy

GJ728,944815,028

1,102,403

1,194,473

Total Scope 1 Fuel Usage

Total Scope 2 Indirect Energy Usage

Total Scope 3 Energy Usage

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S TAT E S T R E E T C O R P O R AT I O N

E N E R G Y I N T E N S I T Y R AT I O

UNIT

2021

2020

2019

2018

Numerator

kWh

221,813,319

244,247,646

271,001,367

275,560,881

Denominator

Occupants

30,55240,20042,001

39,996

7,260

6,076

6,452

6,890

Energy Intensity

T O TA L E N E R GY S AV E DElectricity

GJ

16,045

13,85015,14423,252

Heating

GJ

2,049

0

0

0

Total Energy Saved

GJ

18,093

13,85015,14423,252WAT E R C O N S U M P T I O N

2021

2020

2019

Water consumption office only
(million cubic feet)

7.62

10.19

16.10

Water consumption per person ­—office only (cubic feet)

250

254

384

Water consumption ­— office +data center (million cubic feet)

10.29

12.74

18.54

Water consumption per person —office + data center (cubic feet)

337

317

441

2021 ESG REPORTSCOPE 3

Methodologies for the estimation of carbon emissions are evolving. We currently
think of the potential for disclosure under three pillars:
1. Our operational footprint — As in previous years, we made relevant disclosures inour 2021 ESG Report.
2. Our asset management business — State Street Global Advisors is a proud
member of the Net Zero Asset Managers initiative.
• To serve the long-term interests of our clients, State Street Global Advisors
is engaging with portfolio companies to assess their consideration ofclimate risks and opportunities, reducing emissions, and increasingclimate-related financial disclosures.
• State Street Global Advisors is setting an interim target for the proportionof assets to be managed in line with attaining net-zero emissions by 2050 orsooner, and will review the interim target at least every five years, aiming toincrease the proportion of AUM until 100 percent of assets are included.
• State Street Global Advisors is intending to release a report later this year,
giving fuller information regarding its net-zero commitment, includinginterim targets for Global Advisors’ financed emissions. When available, thisreport will be linked from www.statestreet.com/cr.
3. Our own balance sheet – As a custody bank, the majority of assets on ourbalance sheet are different from those of institutions that primarily provide
direct financing to their clients. As of our last public filings, significant
proportions of our balance sheet included agency MBS, ABS, sovereign debt,
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 than a small
proportion of the assets on our balance sheet. We are proactively engaging withindustry participants as we work toward defining an appropriate framework

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S TAT E S T R E E T C O R P O R AT I O N

for a custody bank and we continue to mature our own internal carbon
accounting methodology. Over time, we expect that increased consistency inapproaches to measuring and reporting emissions will lead to advances that
we can incorporate into our methodology and that will allow us to enhance ourdisclosures accordingly.

TA R G E T S

A 2030 target of 27.5 percent reduction in metric tons 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. Paired with State Street’s commitment to becarbon neutral, this two-pronged approach involves procuring green power andcarbon offsets for all energy consumption while looking to reduce overall energy
consumption each year. The target covers all of State Street’s Scope 1 and 2
emissions under operational control following the location-based method.
In 2021, for the second year in a row, State Street achieved carbon neutrality for
Scope 1 and 2 emissions through infrastructure retrofitting, purchasing renewableenergy certificates (RECs) and carbon offsets, and by utilizing renewable energy
sources wherever possible.
As part of State Street’s commitment to environmental sustainability, we set an
80 percent waste recycling goal in 2017 that covered waste from all of our facilities
globally. For the first time in 2021, State Street not only achieved our goal of an
80 percent global recycling rate, but exceeded it by nearly 6 percent. While total
waste volumes are lower due to decreased office occupancy, we increased our
percentage of recycling in large part due to:• Engaging our workforce through a widespread globally aligned, but locallytailored, campaign in all of our offices• Working with our vendors to implement project management initiatives aroundrecycling• Implementing a program of reusing office furniture, rather than disposing of these
items when we exit locations

2021 ESG REPORT

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S TAT E S T R E E T C O R P O R AT I O N

2021 ESG REPORTS TAT E S T R E E T 2021 E S G R E P O R T - A P P E N D I X

GRI INDE X

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GENERAL DISCLOSURESI N F O R M AT I O N

Organizational Profile
102-1

Name of the organization

State Street Corporation

102-2

Activities, brands, products,
and services

We have two lines of business: Investment Servicing
and Investment Management. State Street Corporation
provides services to asset owners; asset managers andalternative asset managers; official institutions including
central banks and sovereign wealth funds; and insurancecompanies. Across our company we are focused on
maximizing the value we create for our customers anddelivering on our purpose.
See [GRI 102-6] for additional information.

102-3

Location of the headquarters

State Street Corporation
State Street Financial Center
One Lincoln Street
Boston, MA 02111

102-4

Location of operations

We serve clients in more than 100 markets. For a list of
office locations, see the About section of statestreet.com.

102-5

Ownership and legal form

State Street is a financial holding company organizedunder the laws of the Commonwealth of Massachusetts.
Our common stock is listed on the New York Stock
Exchange.

2021 ESG REPORT

102-6

Markets served

We provide investment management, research andtrading, investment servicing, and data analysis andinsights to the world’s institutional investors. Our clients
include asset owners; asset managers and alternative
asset managers; official institutions, including central
banks and sovereign wealth funds; and insurancecompanies. Our solutions cover our clients across theinvestment lifecycle.
Through our investment servicing business, we provide
core custody, accounting and fund administration, andperformance analytics for traditional and alternative assets
as well as multi-asset class investments. Our global markets
capabilities span electronic trading, securities lending, andcollateral and liquidity management, along with specialized
investment research and market insights.
As the first-ever front-to-back platform offered by a single
provider, State Street AlphaSM connects investment tools,
insights and partners for greater speed and efficiency acrossthe front, middle and back office. With State Street DigitalSM,
we’re building on our strong digital services platforms andsolutions to help clients transition and thrive in the new
digital economy.
Our investment management business, State Street Global
Advisors, is the world’s fourth-largest asset manager and apioneer in ETF and index investing. Global Advisors provides
investment solutions across the risk-return spectrum,
covering all major asset classes, investment styles, andvehicles.

102-7

Scale of organization

See [State Street’s 10K] concerning State Street’s key
financials, and further information concerning assets,
debt, and shareholders’ equity. Please also see [Inclusion,
Diversity and Equity], [Employee Experience] and [102-8]
regarding staff numbers.

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102-8

Information on employees
and other workers

Female employees: 17,415 (16,643 full-time and 772 part-time)
Male employees: 21,256 (21,156 full-time and 100 part-time).
Prefer not to disclose or unknown gender employees: 114(110 full-time and 4 part-time)

102-9

Supply chain

Supply chain categories that our Global Procurement
Services group focuses on for key products and services
include:Business services: These include the global managementof the Contingent Labor at State Street (CLASS) Programfor staff augmentation and other labor services needs
across the company;
Financial services: These deliver risk-mitigating businessvalue to State Street within the sub-custody, insurance,and operation support areas;
Information technology: These include businessapplications, 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 print, office supplies, catering services,
subscriptions, and facility services in alignment with the
Global Realty Services team;Outsourcing: This involves working with the business tosource 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 thatmanage our business travel and employees conducting
business travel.
See [Monitoring Human Rights Risks in Our Supply Chain]
as well as our Human Rights Statement andour most recent Modern Slavery Act Statement for more
information on how we manage risks within our supply
chain.

2021 ESG REPORT102-10Significant changes to theorganization and its supply chain

In September 2021, State Street and Brown Brothers
Harriman & Co. (BBH) announced that they entered into
a definitive agreement for State Street to acquire BBH’s
Investor Services business, including its custody, accounting,fund administration, global markets, and technology
services. Once complete, subject to regulatory approvals andcustomary closing conditions, the acquisition will makeState Street the world’s largest custodian by assets undercustody.

102-11

Precautionary principle approach[Task Force on Climate-related Financial Disclosures][UN Global Compact]

102-12External initiatives

TCFD
SASB
CEO Action for Diversity
UN Principles for Responsible Investment
UN Sustainable Development Goals
UNEP Finance Initiative
UN Global Compact
Boston Women’s Compact
CDP
Ceres
ISO 14001
ISO 5000

102-13

Membership of associations

State Street ESG affiliations:
30% ClubAdvisory Committee at Yale’s Institute for Sustainable Finance
Alliance of CEO Climate Leaders
Asian Corporate Governance Association
Boston College Center for Corporate Citizenship
Boston Green Ribbon Commission
Boston Women’s Compact
Business for Social Responsibility
Business Roundtable
Cambridge Institute for Sustainability Leadership
CDP (aka Carbon Disclosure Project)
Ceres Paris-Aligned Investment Working GroupCII - Council of Institutional Investors
Climate Action 100+
Climate Bonds Initiative
Coalition on Climate Resilient Investment (CCRI)
Council for Inclusive Capitalism with the Vatican
CSR Asia

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102-13(continued)

Membership of Associations

CSR Europe
Embankment Project for Inclusive Capitalism (EPIC)FCLTGlobal
Future Investment Initiative
Global Reporting Initiative (GRI)
Green Bond Principles
Green Power PartnershipGreentown LabsGRESB - Global Real Estate Sustainability Benchmark
Harvard Law School Program on Institutional Investors
IIF Sustainable Finance Working GroupInternational Business Council
International Integrated Reporting Council
Investment Leaders Group (part of CISL)
Investor Leadership Network
ISG - Investor Stewardship Group
Japan Investment Advisers Association
Japan Securities Dealers Association
Japan Stewardship CodeNet Zero Asset Managers Initiative
One Planet Asset Managers initiative
One Waterfront CEO Roundtable
Principles of Responsible Investment (PRI)
RIA - Responsible Investment Association Canada
SASB Investor Advisory Group
Sustainable Markets Initiative
Sustainable Trading
The Investment Trust Association
UN Force for Good Initiative
United Nations Environment Programme Finance Initiative (UNEPFI)
United Nations Global Compact (UNGC)
United Nations Institutional Investors Group on Climate Change (IIGCC)
Vatican’s Dicastery for Integral Human Development and the
University of Notre Dame
World Economic Forum Transition Finance Steering Committee

2021 ESG REPORT

Strategy102-14

Statement from seniordecision-maker[Statement from Ron O’Hanley]

Values, principles, standards,
and norms of behavior[Board Governance and ESG Management]
State Street Corporate Responsibility Policy Statement
State Street Standards of Conduct

Governance structure[Governance and ESG Management: Board Governance]

102-40

List of stakeholder groups

Shareholders, clients, employees, academics, NGOs,
investment analysts, business partners, community.
See [Materiality] for more information.

102-41

Collective bargaining agreements

Given the global footprint of State Street, we operate incountries where local laws exist regarding the freedom of
association and collective employee action. State Street
employees in six of our European offices participate incollective bargaining agreements, totaling 3.0 percent ofState Street employees globally.

102-42

Identifying and selecting
stakeholders[Stakeholder Engagement]
As a publicly traded company whose success depends
on supporting the success of our clients with financial
services, we have long defined shareholders, clientsand employees as key stakeholders. Further, additional
stakeholders are important as they provide expert
perspectives or impact our reputation in the marketplace —see [GRI 102-40].

Ethics and Integrity
102-16

Governance102-18

Stakeholder Engagement

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S TAT E S T R E E T C O R P O R AT I O N

102-43

Approach to stakeholder
engagement[Stakeholder Engagement][Employee Engagement][Embedding ESG Accountability]
2021 Proxy Statement, page 2
Engagement with stakeholders to determine material
topics occurs every two years, undertaken as part of thereport creation process, specifically to identify the material
ESG issues for State Street. For the 2021 materiality
assessment, internal and external stakeholders wereinterviewed regarding their perspective on the materialityof each potentially material topic to State Street. The
process also leveraged pre-existing frameworks likethe Sustainability Accounting Standards Board (SASB)
framework to represent the voice of investors.
State Street has an active shareholder engagement
program, holding formal meetings with them at least two
times a year. In 2021, they met once in the spring, after
annual proxy filing, and once in the fall. The spring typicallyis a more targeted discussion with shareholders about the
governance and executive compensation matters. The
fall meetings are more general, fluid discussions andthis year ESG was discussed in each of those meetings (~20
meetings, representing ~40 percent of outstanding shares).

102-44

Key topics and concerns
raised[Materiality]

Entities included in the
consolidated financial
statements

All data presented in the report represents all wholly
owned State Street Corporation operations, unlessexplicitly noted otherwise.

Reporting practice102-45

2021 ESG REPORT

102-46

Defining report content
and topic boundaries[Materiality]
The content for this report was informed by topics of the
SASB framework, the GRI Standards, the Task Force on
Climate-related Financial Disclosures and other reporting
standards relevant to State Street and our activities andimpacts. A materiality assessment performed in late 2021
consulted our internal as well as external stakeholders. This
helped define the topics most material to State Street, andhence described in this report. In addition, some nonmaterial
information was added, where we felt it would be of interest
to certain stakeholder groups. Topic boundaries were
defined by subject matter experts for each material topic.
In principle, the content of this report covers all State Street
global operations. Any exceptions for material topics are
explained under GRI 103-1 for that topic.

102-47

List of material topics[Materiality]

102-48

Restatements of information

No restatements.

102-49Changes in reporting

The boundaries for the report have not changed fromprevious years.

102-50

Reporting period

January 1 to December 31, 2021

102-51

Date of most recent report

April 2021

102-52

Reporting cycle

Annual reporting

102-53

Contact point for questions
regarding the report

Adrienne Zak, VP, ESG Reporting & Communications
azak@statestreet.com

102-54Claims of reporting inaccordance with the
GRI Standards

This detailed GRI content index is in accordance with theCore option of the Global Reporting Initiative Standards.

102-55

GRI content index[GRI Index]

102-56External assurance

We obtain independent assurance on our annual ESG
reports. For details of the scope and basis of theassurance carried out by ERM-CVS on our 2021 ESG
Report, please refer to ERM CVS’s [Assurance Letter].

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T O P I C -S P E C I F I C D I S C L O S U R E SMaterial topic: Risk, Ethics and Compliance

The State Street material topic “Risk, Ethics, and Compliance” includes the GRI topics “205 Anti-Corruption,” “206 Anti-competitive
Behavior,” “417 Marketing and Labeling” and “419 Socioeconomic Compliance.” It also covers our risk excellence programs.

Disclosure on management approach
103-1

Explanation of the material topic and its boundary
At State Street, our business depends on being a trusted partner. Excellence in risk management,compliance, and ethics across all our operations is essential due to their potential impact on State
Street’s reputation with our stakeholders and the risk to shareholders in the event of breaches.
Ensuring regulatory compliance, including anti-corruption, prevention of anti-competitive
behavior, and honest and transparent marketing, is a top priority. We strive to foster a culturethat allows us to identify and address potential issues before they become problematic from acompliance perspective. This also includes an open and ethical approach to the marketing of our
products and services.

103-2

The management approach and its component[Risk, Ethics, and Compliance]
State Street is committed to conducting business in a fair and ethical manner. We manage
compliance and risk programs primarily through the work of three management committees:
the Management Risk and Capital Committee, the Business Conduct Risk Committee and theTechnology and Operational Risk Committee. The work of these three committees is overseen
at the board of directors level by the Risk Committee and the Examining and Audit Committee.
Together, this structure provides comprehensive oversight to the wide range of issues related torisk, compliance, and ethics.
Our compliance teams oversee aspects of our first line of defense and report to our chief risk
officer (CRO). State Street employs a company-wide three lines of defense structure.
The three lines of defense framework that governs risk in our operations:• First line: Every employee owns the risks associated with their activities and is responsible
for establishing effective internal controls to manage such risks to an acceptable level and topromote a strong culture of risk awareness;• Second line: Independent control functions such as Enterprise Risk Management and Corporate
Compliance set our corporate risk appetite and monitor adherence to these limits, as well as toour risk management and compliance frameworks; and• Third line: Corporate Audit provides independent assurance of the process.

2021 ESG REPORT

103-2 continued

Our Standard of Conduct sets forth our ethical priorities. The Standard of Conduct explains thecore concepts of ethics, includes a framework for ethical decision-making, and guides employees’
decision-making process even when there is not a prescriptive rule for the situation at hand.
Some of the principal Compliance policies that support our Standard of Conduct are:
• Anti-Bribery and Corruption Policy• Gifts and Entertainment Policy• Political Contributions and Activities Policy• Personal Investment Policy• Conflicts of Interest Policy
Anti-Corruption
Our Standard of Conduct and our Anti-Bribery and Corruption Policy convey our anti-corruption
policies to all employees. Financial Crimes Compliance, first line managers, Procurement, Financeand Accounting, Human Resources, Legal and Audit departments are all involved in the executionof our Anti-Bribery and Corruption Policy. The policies mitigate regulatory and enforcement
risk. They require our employees to neither offer nor receive anything of inappropriate value
in order to drive a particular outcome or benefit. In our procurement procedures, we apply due
diligence to our business partners to ensure the partner is one we wish to do business with, froma compliance and reputational perspective as well as from a capability perspective. This means
holding the business partners to appropriate standards. In addition, our policies require that
employees and interns associated with State Street are hired based only on their merit, rather
than any association.
Anti-Competitive Behavior
Fair competition is upheld by our policies and the law. Our Standard of Conduct prohibits misusinga client’s confidential information or engaging in any unfair dealing with competitors. Advanceapproval must be obtained by our General Counsel before discussing pricing strategies withcompetitors, entering into agreements concerning market opportunities, or otherwise engaging
in joint action. Competitive information and market data can only be obtained from public sources
and through lawful means.
MarketingRegarding information on the products and services we offer, we have controls in place tosupport transparent and consistent product and service disclaimers. Compliance and/or theBusiness Line may provide training to employees in various business roles as appropriate to help
ensure the requisite disclaimers are made. Our Global Marketing Materials, Collateral Materials
and Communications Policy requires that all marketing content is produced in compliance withapplicable regulatory requirement which hold, generally, that content is accurate, fair, balanced,
and not misleading.

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203-3

Evaluation of the management approach
Our chief compliance officer runs an annual compliance risk assessment to determine theamount and type of compliance monitoring that is required considering both the strength of ourcompliance internal controls and emerging trends. Adjustments are constantly made to meet
emerging trends and needs.
Our “Speak Up/Listen Up” initiative encourages employees as well as business partners to reportcomplaints, grievances, including any observed instances of corruption, misconduct, fraud,and potential violations of policy through “the Speak Up line,” a confidential reporting hotlinethat promptly routes issues to the Conduct Office and in certain cases, to the lead director of
the board. Additionally, Corporate Compliance, Global Human Resources, Legal, and Global
Security maintain open channels through which to report concerns. We also conduct regular risk
assessments that target certain organizational risk indicators

GRI topic-specific disclosures: 205 Anti-Corruption
205-1

Operations assessed for risks
related to corruption

100% of our business operation and every functional area
is included in our annual risk assessment, which includes
bribery and corruption risk as a standard item in our risktaxonomy.
Our risk analysis places emphasis on the following:• Payments to vendors and intermediaries• Corrupt hiring practices• Pay to play violations,• Inappropriate charitable contributions• Facilitation payments• Inappropriate gifts and entertainment• Inaccurate books and records

205-2

Communication and training
about anti-corruption policies
and procedures

100% of governance body members and employees
have had our anti-corruption policies and procedures
communicated to them.
Region
North America
EMEA
APAC
Latin America

Completion Rate:
99.99%
99.99%
99.96%
100%

Members of the board of directors receive information on
corruption risks through their review and approval of theStandard of Conduct, which includes key elements of thefirm‘s Anti-Bribery and Corruption Policy. The Examining
and Audit Committee of the board also receives a formal
annual report and periodic updates on the Complianceprogram, which includes our anti-bribery and corruption
program.

2021 ESG REPORT

205-2 continued

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 client due diligence requests and RFPs.
We include a standard anti-corruption provision in all
business partner contracts. All internal governancecommittee members receive annual training by virtueof their status as employees. External Board members
do not receive the training. As a regulated business, weshare our anti-corruption policies and procedures withvarious regulators upon request.

205-3

Confirmed incidents ofcorruption and actions taken

In 2021, there were no confirmed incidents of corruptionthat resulted in litigation against State Street.

GRI topic-specific disclosures: 206 Anti-Competitive Behavior
206-1

Legal actions for anticompetitive behavior, anti-trust,and monopoly practices[GRI 419-1]

GRI Topic-specific disclosures: 417 Marketing and Labeling
417-3

Incidents of non-complianceconcerning marketing
communications

In 2021, we had no instances of noncompliance withregulations or our policies regarding marketing
communications, which reflected our dedication to ethicalmarketing and fair competition.

GRI Topic-specific disclosures: 419 Socioeconomic Compliance419-1

Non-compliance with laws andregulations in the social andeconomic area

In 2021, State Street had no fines or sanctions for noncompliance with laws or regulations in the social or
economic area.

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S TAT E S T R E E T C O R P O R AT I O NMaterial topic: Operational and Cyber Resilience
The State Street material topic “Operational and Cyber Resilience” covers our efforts to ensure resiliency and continuity of ourbusiness operations and IT systems.

Disclosure on management approach
103-1

Explanation of the material topic and its boundary
State Street considers operational and cybersecurity preparedness as a strategic businesspriority and manages these risks by leveraging robust training, policies and procedures. Our
employees and systems are built to address the most severe of potential operational and cyberrelated threats, and we are continuously developing new protection measures for our systems,
data, facilities and employees under our care.

103-2

The management approach and its component[Operational and Cyber Resilience]
In regard to operational resilience, we closely monitor, map, and manage emerging threats tothe business, such as climate-related extreme weather events or unstable governments that
could impact business continuity. Key to our approach is having systems in place to identify andunderstand potential threats to optimize preparedness so that we can maintain operations andcontinue servicing clients and the market without interruption. We also work to find ways toreduce the impacts and harm of known operational threats or crises that may recur.
Our cyber defense is spearheaded by our Global Cybersecurity (GCS) team, tasked with continually
improving cybersecurity by developing and evolving our security policies and processes,
upskilling our internal cyber team, performing awareness training for our employees, increasing
security of our systems, enriching incident response via an intelligence driven approach, andcontinually testing our systems for rigor. GCS establishes the framework, policies and related
programs to measure, monitor and report on cybersecurity risks, including the effectiveness ofcybersecurity program protections. GCS defines and manages the enterprise-wide cybersecurity
program. We have adopted the National Institute of Standards and Technology Cybersecurity
Framework, a set of guidelines and recommendations that combine industry standards and bestpractices to help organizations manage their cybersecurity risks. GCS coordinates with Global
Technology Services, business functions, control functions, and business units to support theconfidentiality, integrity, and availability of corporate information assets.

103-3

We are actively putting measures in place and making investments to better measure, manage,and mitigate cybersecurity risks and continue strengthening our cybersecurity program. All
employees are required to adhere to our cybersecurity policy and standards.

2021 ESG REPORT

Material topic: Data Privacy
The State Street material topic “Data Privacy” includes the GRI topic “418 Customer Privacy.” It covers our efforts to implement
controls and ensure protection and privacy of our data.

Disclosure on management approach
103-1

Explanation of the material topic and its boundary
Data privacy is handled with diligence and due care at State Street. We do not just hold custodial
cash and securities, but also data. Our clients’ trust and confidence are the foundation of ourrelationship with them. They rely on us not only to enable them to make the best investment
decisions, but also to safeguard sensitive information in our care. Keeping data safe is one of ourcore fiduciary responsibilities. Doing so is central to State Street’s reputation in the marketplace.
This is important across the entire organization.

103-2

The management approach and its component[Data Privacy]
To support compliance with the Privacy Standard and relevant data protection laws, the Global
Privacy Office, as part of Street’s Corporate Compliance organization, is responsible for designing,
maintaining and overseeing the State Street Privacy Program. The Global Privacy Office, led by
the Global Head of Data Privacy, consists of global teams providing privacy compliance advice,oversight, and management.
Every State Street employee is responsible for upholding our Privacy Program, as defined in
our Standard of Conduct. Their interactions are determined by our Global Privacy and Personal
Data Protection Standard, which is developed by our Privacy Office. Responsibility for oversightof our client data is housed in the Client Information Security division, in close collaboration withappropriate business units. This applies to all personal data, though State Street’s Customer
Complaints Policy specifically addresses management of data for clients and escalation of any
relevant concerns.
Our Data Loss Prevention Strategy will ensure unauthorized disclosures of State Street “critical”
data are inspected, monitored, escalated, and prevented in accordance with our Data Loss
Prevention & Protection Policy, Corporate Information Security Controls, data handling and usage
policies, and legal and regulatory policies.

103-3

The efficacy of our Privacy Program is independently assessed by our corporate audit function aspart of our overall Compliance Program. State Street’s governance process also works to ensure
awareness of client data protection and privacy programs at all levels of management

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418-1

Substantiated complaints
State Street did not receive any complaints concerning
concerning breaches of customer breaches of client privacy in 2021, nor did we identify any
privacy and losses of customer
leaks, thefts, or losses of client data.
data

Material topic: Employee Experience
The State Street material topic “Employee Experience” includes the GRI topics “401 Employment” and “404 Training and Education.”

Disclosure on management approach
103-1

Explanation of the material topic and its boundary
Across all parts of our organization, our diverse, hardworking, and talented employees drive our
success. To be able to create long-term value, we have to ensure we are attracting and retaining
the best and brightest employees. Our goal is to explain how our company offers opportunities
that are more interesting and rewarding than positions in other industries and companies. We
have a targeted approach for attracting interns, and various programs to develop talent internally,
including our Professional Development Program and Leadership Development Program.
Employee experience also covers our employee engagement efforts; talent recruitment, retention,and development; and well-being and flexible work solution programs.
We focus on specific labor practices that enhance the employee experience and performance. Ourcommitment to providing relevant learning for our employees around the world is a key offering.
We do this through our newly created central learning organization called State Street Learning.
Our learning professionals located around the world create and implement solutions designed tomeet the needs of our business and the development needs of our employees.

103-2

The management approach and its component[Employee Experience]
At State Street, managers and leaders across the business are responsible for driving employee
engagement of their team members, working closely with our Global Human Resources (GHR),
Internal Communications and senior leadership.
GHR continuously develops professional tools — strategic, conceptual, analytical, operational,
and interpersonal — so our employees can exceed our clients’ expectations. In addition, thisteam sets up measurement tools and leads many of the programs associated with employee
engagement, but ultimately, contributing to a positive, supportive culture and staying engaged is
the responsibility of every employee at State Street.
We also engage employees through our employee networks, community engagement
opportunities such as skills-based volunteering and matching gifts, as well as our global
peer reward and recognition program, Bravo. Bravo encourages employees to recognize theircolleagues for good work, a good idea or a good deed that is reflective of State Street’s culture
and culture traits.

2021 ESG REPORT

103-2 continued

In 2021, we administered status checks to continue gauging employee sentiment, allowing us
to observe trends in the organization over time while helping leaders track the progression andimpact of specific initiatives related to engagement in their business units.
Our focus is on attracting and developing a diverse workforce with the skills and expertise toserve our clients. Our talent strategy includes offering a variety of benefits and flexible working
options to meet employee needs, creating engaging employee experiences, and providing an
inclusive environment. Talent acquisition and talent development at State Street are globally
managed functions with local executors; we are able to customize and tailor our general offerings
as needed in each market.
Through continuous development, we work to give our employees the professional tools —strategic, conceptual, analytical, operational, and interpersonal — they need. Career development
is employee-driven, manager-enabled, and company-supported. State Street offers skills training
programs that are developed and delivered by experts in each business area. Additionally, weoffer professional development workshops and seminars that help employees enhance key skills
such as communication and project management. We also provide a variety of management
development programs. Our employees also enjoy the benefit of tuition reimbursement for jobrelated courses taken at accredited institutions.
Our BeWell Program offers employees a variety of resources and tools to help manage theirown physical, emotional, and financial wellness, with benefits varying from country to country.
Our global well-being resources create a healthier workforce, increase employee morale, andenhance sustainable employee engagement.
Through significant work across cross-functional, businesses, and corporate teams, and valuable
feedback from our workforce, 2021 was a critical year to develop a framework for State Street’s
hybrid approach that optimizes the benefits of both a work-from-office and work-from-homemodel –taking into consideration the nature of roles, client needs, and other factors; businesspriorities are the primary driver of which teams are in-person, remote, or hybrid.

103-3

Evaluation of the management approach
Our evaluation of the effectiveness of our management of talent recruitment and retention topics
includes measuring our success through training results and employee engagement (e.g., employee
network growth). An annual talent review process is conducted involving the CEO, the chief humanresources officer, and the heads of each business/corporate function.
The Management Committee determined that the management approach to talent recruitment
and retention is effective, including its ongoing review of employee engagement survey results
and executive vice president leadership scorecards. When necessary, adjustments are made to
individual development plans in order to ensure achievement of annual goals and alignment withlong-term strategic objectives.

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GRI topic-specific disclosures: 401 Employment
401-1

401-3

New employee hires
and employee turnover

Parental leave

Age Group
Under 3030-50
50+Percent Hired
45%
51%
5%

Percent Turnover
40%
50%
10%

GenderFemaleMale

Percent Hired
40%
60%

Percent Turnover
42%
57%

Region
North America
APAC
EMEA
Latin America

Percent Hired
15%
59%
26%
0%

Percent Turnover
30%
45%
25%
0%

[Employee Experience: Supporting Working Parents andCaretakers]
All State Street employees are eligible for parental leavespecific to their country.
From their moment of hire, all employees working above
20 hours per week are eligible for parental leave. We lookforward to disclosing this data in future reports as we
improve our ability to analyze data in this area in line with GRI
standards.

2021 ESG REPORTGRI topic-specific disclosures: 404 Training and Education
404-1

Average hours of training
per year per employee

GenderFemaleMale
Unknown/prefer not to disclose

Average Hours Per
12.88
12.69
9.06

Management Level
Associate 1
Associate 2
Senior associate
Officer
Assistant vice president
Vice presidentManaging director
Senior vice president/ senior
managing director
Executive vice president
Contractors/interns

Average Hours Per
23.72
13.74
13.47
12.79
11.01
10.12
11.03
10.48

Manager/Non-Manager
Non-manager
Manager

Average Hours Per
12.69
13.02

Non-required Training% of employees who completed
non-required training

5%

9.37
6.81

Total employee hours spent on
non-required training

143,577.75

Most commonly taken nonrequired course

Welcome to WARM:
World Anti-Racism
Reflection Moments(and corresponding
courses to thisprogram)

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404-2

Programs for upgrading
employee skills and transition
assistance programs[Employee Experience: Talent Acquisition, Retention andDevelopment]Internally, our Leadership Development Program (LDP) is a
global, enterprise-wide development and rotational programthat offers unique professional development opportunities
to high-potential, mid-career employees. Our Professional
Development Program (PDP) selects high-performing recent
college graduates, including former State Street interns toparticipate in a tailored program that immerses them in
different aspects of the business. These two-year programs
provide targeted rotational assignments and professional
development. Participants gain hands-on experience acrossState Street’s businesses. They will be encouraged andchallenged as they develop into well-rounded, authentic, andthoughtful leaders.
In 2021, we hired 41 participants in the US and India who
participated in the PDP. 28 PDP participants were hired in the
US and 13 were hired in India. 40 percent of PDP participantsin the US were in a previous State Street internship or Co-Op
program. 33 percent of the upcoming 2022 India PDP
program are former interns. 10 LDP participants completed
the program and were placed into permanent roles. In 2020,
20 LDP participants completed the program and took fulltime roles at State Street — 11 as VPs and nine as AVPs.
Training programs are part of a holistic approach to company
culture. We hold sessions on unconscious bias, respect inthe workplace, inclusive interviewing, leading inclusively,
managing micro-behaviors, and anti-racism training.
Additionally, Culture Pathways (via our Degreed learning
platform) assists with a better understanding of our culture
traits. Each Pathway includes a combination of courses,
videos, and books or articles, allowing individuals to complete
the learning at their own pace, and revisit components ifneeded. We look to our employees to embody our culture
traits and continuously practice, role model, and coachothers on the behaviors associated with them. State Street
launched a learning pathway through Degreed on equity to all
employees to help them in their understanding of equity andhow it plays out in business. The learning assets leveraged
podcasts and other items from both internal and external
resources to help the learner in comprehension.

2021 ESG REPORT

404-2 continued

404-3

Our employee networks also provide many programs andopportunities for professional development. In 2021, theseincluded the Professional Women’s Network Sponsorship
Program, Latin American Professional Group (LAPG)
Mentoring Program, LAPG Data Presentation Workshops,
Sales Development Program and Disability 4 Disability
Mentoring Program. See details on each of these programsin [Mentorship Programs].
Percentage of employees
receiving regular performancedevelopment reviews

All full-time employees (100 percent) across all genders andemployee categories participate in our career performance
management process and receive regular performance andcareer development reviews.

Material topic: Inclusion, Diversity, and Equity
The State Street material topic “Inclusion, Diversity, and Equity” (IDE) includes the GRI topic “405 Diversity and Equal Opportunity.”

Disclosure on management approach
103-1

Explanation of the material topic and its boundary[Inclusion, Diversity, and Equity]
We know that different backgrounds, perspectives, and experiences spark creativity and create amore inclusive environment. To be competitive in business long-term, we need a diverse pipelineof talented future leaders across the whole organization. A diverse workforce helps us serve ourclients better.
We recognize that equal remuneration for equal work across our company is material to our
reputation and the motivation of our employees.

103-2

The management approach and its component
Our IDE strategy was developed and implemented by GHR’s Global Inclusion, Diversity, and Equity
team, with input of key champions and stakeholders, and approved by the company’s senior
management. 2021 was the fourth year of our comprehensive five-year strategy that includes
four key components: communication, accountability, talent pipeline, and learning & development.
The chief diversity officer oversees the company’s global strategy and programs for diversity andinclusion. All business leaders participate in ensuring that our goals are met.

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103-2 continued

The following policies cover diversity and equal opportunity:.
• Global Inclusion, Diversity, and Equity 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
Additionally, we have a dedicated department for employee relations and a whistleblower hotline
available to all employees.
As a component of our commitment to gender equity, State Street is making steps toward greatertransparency for its pay structures. One of the steps of this work is our U.K. Gender Pay Gap
Report, referenced within [Inclusion, Diversity, and Equity: Gender Equality]. However, we do not
yet globally report a woman’s basic salary as a percentage to a man’s. We expect to disclose thisinformation later in 2022 and will link to it from www.statestreet.com/cr when it is available.
State Street is partnering with Kahilla, a digital, modern women’s resource group designed toprovide participants with the mindsets and skill sets needed to advance and lead today andtomorrow. Membership offers a unique community and digital learning experience with accessto renowned experts in the field of positive psychology and executive leadership as part of State
Street’s commitment to talent development, diversity, and inclusion. A Kahilla membership,includes access to executive coaching, curated content, and connection to community, all withina safe and secure digital platform. The curriculum will be available in both live and on-demandsessions, ensuring you can participate anytime and anywhere via internet browser or mobile app.
State Street continues to partner with organizations to support efforts to close the gender gap inwages and representation. One example is the Boston Women’s Workforce Council’s 100% TalentCompact, which is a pledge companies make to commit to closing the gender pay gap. We also
partner with the 30% Club to further guide our strategy to improve female representation at thehighest levels of the organization. For the 15th consecutive year, State Street was the presenting
sponsor of the 2021 Massachusetts Conference for Women, the world’s largest women’sconference.

2021 ESG REPORT

103-2 continued

State Street also offers employees the opportunity to join one of 24 employee networks with morethan 110 chapters and 58 executive sponsors, including:• Asian Professionals Group• Bible Study Group• Black Professionals Group• Catholic Employee Network• Community of Professional Practice (COPP)• Disability Awareness Alliance• Employee Preparedness & Response Employee Network• Environmental Sustainability Employee Network (ESEN)• Flexible Work Employee Network• Global Toastmasters Network• Indian Employee Network• International & Cultural Exchange Network• Irish-American Professionals Network• Italian-American Employee Network• Italian American Professionals Alliance• Jewish Professionals Network• Language Practice Network• Latin American Professionals Group• Military Employee and Family Network• Muslim Employee Network• Professional Women’s Network• State Street Connect• State Street Executive Assistants Network• State Street Professional Accountants Networking Group• State Street Global PRIDE and Friends• State Street Good Reads• Women’s Information Network• Working Parents Group• Year Up Network
Our employee networks encourage diversity awareness and education, offer volunteering
opportunities, and promote career development and cultural expression.

103-3

Evaluation of the management approach
While we continue to report progress on our enterprise-level diversity goals to the organization
through our gender and employees of color diversity dashboards, we are also making our leaders
accountable for driving these efforts and providing them an assessment on where they standin relation to IDE through the executives’ talent reviews and leadership scorecards. Equallyimportant is to pay close attention to our employee survey results that provide a clear picture on
our gaps and opportunities and provide a sense of the impact of our work across the company.

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GRI topic-specific disclosures: 405 Diversity and Equal Opportunity
405-1

Diversity of governancebodies and employees[Inclusion, Diversity, and Equity][Board Diversity]
Technical:
Age
Under 30
30-50Over 50

Male
62%
68%
85%

Female38%
32%
16%

Prefer Not toDisclose
0%
0%
0%

Male
0%
8%
9%

Female
100%
90%
91%

Prefer Not toDisclose
0%
0%
0%

Male
44%
53%
54%

Female55%
47%
43%

Prefer Not toDisclose0%0%1%

Female52%
43%
41%

Prefer Not toDisclose0%0%0%Administrative:
Age
Under 30
30-50Over 50
Other:
Age
Under 30
30-50Over 50

Employee Breakdown by Age:
Age
Under 30
30-50Over 50405-2

Ratio of basic salary andremuneration of women to
men

Male
47%
57%
59%

[Inclusion, Diversity, and Equity: Gender Equality]
Our disclosure of basic salary and remuneration ratios in the United
Kingdom is one of many steps that State Street has taken toward
gender equity. We are not currently able to share global information
publicly but plan to disclose later in 2022. This disclosure will belinked from www.statestreet.com/cr when it is available.

2021 ESG REPORT

Material topic: Climate Change
The State Street material topic “Climate Change” includes the GRI topics “302 Energy,” and “305 Emissions.”

Disclosure on management approach
103-1

Explanation of the material topic and its boundary
Our environmental impacts reflect our operational efficiency, and good performance helps attract
and retain clients, save money, and engage employees. As a financial services company, ourmain impacts are indirect and related to the assets we manage and to issues of ESG integration
into our client offerings (see [ESG Integration]). However, when compared to our operations, ourproducts and services have minimal direct environmental impact. Hence, our focus lies in ouremissions from operations and supply chain issues.
We recognize the threat of climate change and are committed to reducing our fossil fuelconsumption. Therefore, greenhouse gas (GHG) emission management and mitigation are a key
aspect of environmental sustainability at State Street. Our energy usage in our buildings and data
centers is responsible for most of our carbon emissions. Other emission sources are businesstravel and commuting.

103-2

The management approach and its component[TCFD Report – Governance]
In 2021, Rick Lacaille was appointed to serve as State Street’s Head of ESG to lead and coordinate
ESG efforts across the firm. Rick provides enterprise leadership for State Street’s ESG program,effectively ensuring a well-coordinated and optimized approach to our ESG policies, products,
initiatives, and thought leadership. He works across teams to fully leverage ESG capabilities
stemming out of all areas at State Street, including State Street Global Advisors.
In our Executive Corporate Responsibility Committee (ECRC), Global Realty, Procurement, Global
TechnologyServices (IT), Travel, and Environmental, Social, and Governance (ESG) teams are all
represented. This group manages GHG from operations, with Scope 1 and 2 predominantly arisingfrom the Realty and IT functions, and indirect Scope 3 emissions arising from Procurement andTravel functions.
Our corporate responsibility (CR) strategy is managed by the ECRC, which meets at least
quarterly. Our global Environmental Sustainability Policy states that we are “committed to beinga leader in environmental sustainability, both in the way we carry out our operations and in the
products and services we offer.” By conducting our business in this manner, we align our longterm success with the environment and create enduring benefits for our shareholders, clients,
employees, and the communities in which we live and work. We consider adherence to this policy
to be the responsibility of all individuals who take part in our activities.

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103-2 continued

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 toemissions.
We are subject to Article 8 of the EU Energy Efficiency Directive, and the UK Carbon Reduction
Commitment legislation for our operations in the UK 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 marketbased method calculations.

103-3

Evaluation of the management approach
Our Environmental Sustainability Committee oversees and regularly assesses our progress with
our environmental initiatives and goals. We also consider suggestions from stakeholders. Our ISO
certifications are audited by external parties annually. In 2021, we were able to reduce our carbon
emissions by 25 percent 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 Usage

302-2

Energy consumption outsideof the organization

Natural Gas

GJ

77,473

Diesel

GJ

5,273

Total Direct Energy

GJ82,746

Consumption by Fuel TypeUNIT

Total Scope 2 Indirect Energy Usage
Electricity

GJ

684,706

Heating

GJ

23,298

Cooling

GJ

7,777

Total Indirect Energy

GJ715,7822021 ESG REPORT

302-2 continued

Energy consumption outsideof the organization

Consumption by Fuel TypeUNIT

Total Scope 3 Energy Usage

302-3

Energy intensity

Business Travel(Non-Renewable)

GJ

13,162

Total Indirect Energy

GJ-

Energy Intensity Ratio

UNIT

Numerator

kWh

Denominator

Occupants

Energy Intensity

302-4

Reduction of energy
consumption

221,813,319
30,552
7,260

Total Energy Saved

UNIT

Electricity

GJ

16,045

Heating

GJ

2,049

Total Energy Saved

GJ

18,093

GRI topic-specific disclosures: 305 Emissions

305-1

Direct GHG emissions(Scope 1)CO2e Emissions(Metric Tons)
CO2 Direct

4,427

CH4 Direct

11.52

N20 Direct

2.71

HFCs Direct

2,268

Total Direct (Scope 1)

6,709

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305-2

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

305-3

Other indirect GHG emissions(Scope 3)

56,987CO2e Emissions(Metric Tons)
Total Indirect (Scope 3)

305-4

0

11,056

GHG Emissions Intensity

GHG Intensity
GHG Emissions
Intensity Ratio
List of Included Gases

305-5

2.08
Carbon Dioxide (CO2),
Methane (CH4), Nitrous Oxide (N2O)

Reduction of GHG emissions

GHG Reduction
Total GHG Reductions
in metric tonnes CO2
equivalent

1,336

Material topic: Environmental, Social, and Governance (ESG) Integration
The State Street material topic “ESG Integration” refers to our ESG investment solutions, asset stewardship practices, State Street
Total ESG reporting and analytics tools, and incorporation of ESG considerations in our investment and funding strategies.
Disclosure on management approach
103-1

Explanation of the material topic and its boundary[ESG Integration]
Our goal for ESG integration is to generate long-term value for ourclients while strengthening our operational resiliency.

2021 ESG REPORT

103-1 continued

ESG Investment Solutions
Environmental, social and governance (ESG) factors are increasingly used to capture intangible,
off-balance sheet risks and opportunities. We recognize that firms that perform well on material
ESG factors may be better positioned to generate sustainable long-term returns. As a result, we
endeavor to offer our clients a range of products and services that draw on best-in-class data
and analytics to bring ESG considerations into client portfolios. This is especially important for
our Asset Management division, State Street Global Advisors. Global Advisors’ approach to ESG
investing combines asset stewardship, customized advisory services, our proprietary R-Factor™
ESG scoring system, a wide range of ESG investment solutions, and thematic climate investment
strategies.
Asset Stewardship and Proxy Voting
Our primary fiduciary obligation to our clients is to maximize the long-term returns of theirinvestments. It is our view that material ESG issues can both create risk as well as generate
long-term value in our portfolios. As near perpetual holders of the constituents of the world’s
primary indices, the informed exercise of voting rights coupled with targeted and value-driven
engagement is the most effective mechanism of creating value for our clients.
State Street Total ESG
We help our clients to measure and manage ESG risks and opportunities and address ESGrelated data, risk and regulatory challenges via ESG portfolio management, risk analytics, andreporting capabilities. State Street Total ESG provides a multi-vendor suite of ESG data to meetinvestment and reporting needs across asset classes.
Investment and Funding Strategies
We integrate ESG considerations into State Street’s investment and funding strategies, including
the management of State Street’s investment portfolio and the decision-making for ourcommercial real estate portfolio.

103-2

The management approach and its component[ESG Integration]
ESG Investment Solutions
State Street Global Advisors’ ESG Investment Strategy and ESG Research teams, together
with the Asset Stewardship team, lead our firm-wide effort to systemically identify the ESG
risks and opportunities within State Street Global Advisors’ investment products. They work
collaboratively with internal and external business partners and provide relevant insights to ourglobal investment teams. Internally, we focus on investing in innovative research ideas, richer
information/data sets, and the pricing of ESG factors across the asset classes to find new ways tomeet our clients’ ESG investing goals.

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103-2 continued

State Street Global Advisors currently has more than $516 billion in ESG assets undermanagement, comprising roughly 12.5 percent of State Street’s assets under management.
Industry and internal definitions of ESG eligibility and related categorization of AUM amounts
continue to evolve and be refined over time. These updates and refinements have resulted inminor changes in the methodology used in defining ESG AUM compared to the prior year. In
addition, through the process of updating our methodology in 2021 to be in line with industry
standards, we identified some areas where asset classes should be re-categorized to ESG, andsome from ESG to non-ESG, in aggregate resulting in a minor net reduction in ESG assets. We
systematically integrate ESG in the investment process for our actively managed strategies andoffer a variety of ESG investment styles across asset classes: exclusionary screening, best-inclass investment selection, thematic, and ESG integration.
Asset stewardship and proxy voting
All voting and engagement activities are centralized within the Asset Stewardship teamirrespective of investment strategy or geographic region. Further, the Asset Stewardship teamleverages the breadth of our investment capabilities to make informed decisions. By consolidatingand harmonizing our voting decisions and engagement efforts, we leverage the full power of ourinstitutional discretionary holdings and exert greater influence with management and boards.
In conducting our voting and engagement activities, Global Advisors evaluates the various factorsthat play into the corporate governance framework of a country, including macroeconomic
conditions, political environment and quality of regulatory oversight, enforcement of shareholder
rights, and the effectiveness of the judiciary. SSGA complements its company-specific dialogue
with targeted engagements with regulators and government agencies to address systemic
market-wide concerns.
State Street Global Advisors has a dedicated team of ESG analysts, based in Boston, Kraków,
London, and Tokyo, who are charged with implementing its proxy voting guidelines andengagement activities on a global basis. The activities of the Stewardship team are directly
overseen by SSGA’s Investment Committee (IC). The IC is responsible for approving the annual
stewardship strategy, engagement priorities, and proxy voting guidelines, and monitoring thedelivery of objectives. Furthermore, the Proxy Review Committee, a dedicated subcommittee of
the IC, provides day-to-day oversight of the Stewardship team, including approving departuresfrom proxy voting guidelines and managing conflicts of interest.
The Stewardship team is supported by several specialists within SSGA in executing theirstewardship responsibilities. These include members of SSGA’s proxy operations team who areresponsible for managing fund set-up, vote execution, vote reconciliation, share recall and classaction lawsuits, and members of SSGA’s client reporting and compliance teams.
State Street Total ESG
In order to provide a multi-vendor suite of ESG data for clients’ investment and reporting needs,
State Street Total ESG builds on our existing tools and platforms. Through our global support
team and rigorous risk control environment, our advanced technology provides our clients witha fully automated, end-to-end experience. Our approach combines our strategic relationships on
the ESG data front, our research and analytics expertise, and our ability to address client needs
throughout the front, middle, and back office.

2021 ESG REPORT

103-2 continued

Investment and funding strategies
State Street’s Global Treasury team manages State Street’s investment portfolio, is increasing
its allocation to ESG-labeled bonds, and plans to implement an ESG Responsible Investing
Policy across State Street’s balance sheet in 2022 to govern on-balance sheet investing andlending activities. The policy will consider how each business unit will take into consideration
relevant ESG factors, both negative risk factors and positive attributes, in their due diligence andmonitoring process.
Our securities lending business is creating a set of ESG lending guidelines in order to help
borrowers meet their own ESG objectives. We support public investments that benefit ourcommunities through our Tax-Advantaged Investments group, which committed $247 million toaffordable housing and renewable energy projects in 2021.
ESG considerations have and will continue to serve as important drivers in the decision-making
process for State Street’s commercial real estate portfolio. To better understand environmental
risk to the portfolio, the Commercial Real Estate team catalogued property-level environmental
certifications, and identified that 37 percent in our $2.59 billion real estate portfolio involve
buildings with some sort of environmental certification.

103-3

Evaluation of the management approach
ESG Investment Solutions
We regularly evaluate our ESG product portfolio management approach through Global
Investment Committee reviews and a quarterly business review delivered to the Executive
Management Group. In addition, we also use a formal employee evaluation process as part of theannual performance planning and review cycle, and client feedback for evaluation.
Asset stewardship and proxy voting
Global Advisors conducts real-time and quarterly audits to review the accuracy of applicationof proxy voting guidelines to agenda items. In addition, Global Advisors’ Proxy Operations teamconducts vote audits on firm-wide accounts to look for anything out of the ordinary. For example,
more than the usual number of ballots rejected due to ballots received after vote cutoff. These
cases are then investigated to understand the reason for ballot rejection.
Investment and funding strategies
In 2021, 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. Thisscorecard is incorporated into the team’s investment decision-making process. In a further
effort to consider environmental risk, the group initiated work to estimate the amount of carbon
emissions financed by the portfolio. We expect to have a complete estimate of the portfolio’s
carbon footprint in 2022.

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S TAT E S T R E E T C O R P O R AT I O NMaterial 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

103-1

Explanation of the material topic and its boundary
Governance, including structures, processes, and policies, is material to State Street. As businessconditions change, our highest level of decision-makers, the board of directors, must stay
vigilant in monitoring and managing emerging risks. The board recognizes that for State Street
to continue creating long-term value for its stakeholders, it must actively manage ESG issues.
This encompasses the board’s oversight of sustainability, its diversity, and its effectiveness at
deciding what is in the company’s best long-term interests. The board takes a holistic view of ESG
management and is actively working to further embed ESG accountability into our governancestructures. These structures promote the responsible and proactive management of identified
ESG material issues, with policies and strategies for mitigating the associated risks. This topic ismost material to State Street’s own operations but is also relevant to the company’s interactions
with stakeholders of all types.

103-2

The management approach and its component[Board Governance and ESG Management]
As part of its duties outlined in the 2021 Corporate Governance Guidelines, the board monitors,
measures and manages State Street’s material activities and practices regarding ESG matters.
The Nominating and Corporate Governance Committee of the board, and the board itself,
reviewed proposed changes to the charters of each standing committee of State Street’s board
to incorporate oversight responsibilities for ESG activities. In 2021, the charter of every standing
committee of the board changed to incorporate oversight for ESG activities, initiatives, andobligations for matters within each committee’s specific remit.
The Nominating and Corporate Governance Committee meets regularly and consists entirelyof members who are independent under criteria established by the SEC and New York Stock
Exchange. In addition, the chief investment officer periodically presents to the board on
ESG matters in relation to State Street’s goals and the activities of the executive corporate
responsibility committee.

2021 ESG REPORT

103-2 continued

The board’s decision-making and conduct is guided by State Street’s Corporate Governance
Guidelines, the Governance Standards Relative to the Investor Stewardship Group (ISG)
Governance Principles, and the following standing board committee charters, which outline thespecific functions to which each committee attends:
Examining and Audit Committee
Executive Committee
Human Resources Committee
Nominating and Corporate Governance Committee
Risk Committee
Technology and Operations Committee

103-3

Evaluation of the management approach
The board is ultimately charged with managing this material topic. However, during State Street’s
annual strategy session, State Street management invites the board to discuss the company’s
trajectory and any adjustments that should be made.

Disclosure on management approach
405-1

Diversity of governancebodies and employees

GENDER
Male

FemalePrefer not
to disclose/
unknown

Total

#

9

4

-

13

%

70%

30%

-

RACE & ETHNICITY#%

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

-

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UN SUS TA IN A BLE
DE V ELOPMEN T
GOA L S

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U N S U S TA I N A B L E D E V E L O P M E N T G O A L S
State Street became a signatory to the United Nations Global Compact in December
2014. As an early adopter, we have taken a leadership role in contributing to the United
Nations Sustainable Development Goals (SDGs). State Street is well positioned to drive
significant progress on many SDGs and has identified six goals on which it has thegreatest potential for impact.

SDG4: Quality Education
SDG8: Decent Work and Economic GrowthState Street Foundation’s mission is to promote economic opportunity in thecommunities where we have a business presence. 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 and educational qualifications needed to securesustainable employment in today’s knowledge-based, global economy.
State Street Foundation partners with charities that operate in communities
where we have a presence and are committed to reducing gaps in educational
achievement and employability based on race, ethnicity, and socioeconomic status,
thereby promoting economic opportunity and racial equity and demonstrating
leadership, innovation, and a genuine connection for our communities. We do thisby providing grants to support the core business functions of organizations whose
missions, activities, and strategies are aligned with these goals.
Read more in Corporate Citizenship >2021 ESG REPORTSDG 5: Gender Equality
GENDER DIVERSITY ON BOARDS

Through our Asset Stewardship team, we are using our voice and our vote toencourage portfolio companies to take ESG objectives seriously, including greater
gender diversity on boards. State Street Global Advisors believes that board quality
is foundational to good governance and positive investment outcomes. We have a
responsibility as a fiduciary to engage on this issue and use our proxy voting power
as stewards of our clients’ assets.
FEARLESS GIRL

Our Fearless Girl campaign exemplified our focus on gender diversity, where we
informed hundreds of companies with no women on their boards that we wereprepared to vote against the chair of their Nominating Committees if we did not
see action.
From the start of the Fearless Girl campaign in 2017 through February 2022, 948(over 60 percent) of the 1,548 companies we identified with previously all-maleboards have added at least one woman director. And every company in the S&P 500
has at least one woman on its board. In 2022, we will build on the success of the
Fearless Girl campaign by expanding our expectation that companies should have atleast one woman director on their board from only companies in select indices to all
holdings in all markets globally.
Read more in Asset Stewardship >We recognize the value of gender diversity on in State Street’s own board of
directors. Four out of 13 (30%) of our Board members self-identify as female1.
Read more in Board Governance and ESG Management >1

As of April 20, 2022

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GENDER EQUALIT Y IN THE WORKPL ACE

We support gender equality in the workplace through our flexible work culture
and benefits. We provide parental and caretaker support by offering child, elder,and personal care programs, referrals and resources, emergency backup day
care for our employees and paid parental leave benefits, as well as adoption andfertility assistance (all vary by location). In addition, State Street’s Professional
Women’s Network established the Sponsorship Program, which aims to build andsupport a pipeline of leaders for the organization and help bridge the male/female
achievement gap.
Read more in Employee Experience >State Street supports equal pay for equal work and trains our managers to makeappropriate compensation awards to women. In 2021—for the 15th year—wepartnered with the Massachusetts Conference for Women, an organization that
promotes, communicates and amplifies the influence of women in the workplaceand beyond.
Read more in Gender Equality >S H E I M PAC T S

As part of our dedication to furthering gender diversity, the State Street Global
Advisors Gender Diversity Index ETF (SHE), created in 2016, is an exchange-tradedfund designed to measure the performance of U.S. large capitalization companies thatare “gender diverse,” exhibiting gender diversity in their senior leadership positions.
SHE includes a charitable component — SHE Impacts, a donor-advised fundadministered by Advisors Charitable Gift Fund, a 501(c)(3) public charity. SHE Impacts
provides grants to organizations that prepare and encourage girls from kindergarten
through grade 12 to take their place in STEM industries (science, technology,
engineering, and math) where women have low representation today. SHE Impacts
also supports programs that promote gender diverse leadership in the workplace. In
2021, SHE Impacts made a $50,000 donation to Black Girls Code.

2021 ESG REPORTSDG 7: Affordable and Clean Energy
SDG13: Climate Action
To be a responsible corporate citizen, State Street continuously works to minimize
the environmental impacts of our business operations and set aggressive goals to
reduce the environmental footprint of our business.
As an asset servicing provider, manage their own risks, or comply with theincreasingly complex regulatory landscape.
As an asset manager, we help asset owners reduce the carbon intensity of theirinvestment portfolios and embrace the growth opportunities in green innovation.
We have developed a range of equity and bond solutions to help mitigate and adapt
to climate change risks, and position a portfolio for the transition to the low carbon
economy. Our asset stewardship team engages with portfolio companies andboards on climate issues to drive transparency around how they are managing theopportunities and risks of climate change.
As a responsible corporation, we are continuing to reduce our carbon footprint by
reducing energy use, greenhouse gases, and water usage and discharge, as wellas improving waste recycling. To scale impact on climate change, State Street has
joined forces with a number of industry initiatives and organizations, such as theSustainable Markets Initiative, the Net Zero Asset Managers Initiative, Climate Action
100+, the Institutional Investors Group on Climate Change, and the Climate Bonds
Initiative, among others.

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CARBON NEUTRALITY

We continued to achieve carbon neutrality for Scope 1, Scope 2 and partial Scope 3(corporate travel) greenhouse gas (GHG) emissions in 2021 through infrastructure
retrofitting, purchasing renewable energy certificates (RECs) and carbon offsets,
and by utilizing renewable energy sources wherever possible.
While our GHG emissions decreased by 25 percent in 2021, compared to the 2019baseline, we are aware that office occupancy had an impact on this result, reducing
energy use in our offices as a result of the hybrid workforce and in functions suchas business travel. We remain committed to closely monitoring and further reducing
our emissions wherever technically and economically feasible. In 2021, our water
consumption was reduced by 43 percent, and our recycling rate ticked up to 86
percent—achieving the latter target for the first time.
Read more in Climate Change >I N V E S T M E N T C L I M AT E A C T I O N

Investment activities related to climate including risk assessments, stewardshipefforts, and corporate engagements are regularly reported to the Global Adviors
board, CEO Chief Investment Officer. Our climate change risk oversight framework
allows us to prepare and plan for potential climate-related risks that our businessmay be facing, including our globally managed equities.
State Street Global Advisors, one of the world’s largest asset managers, plays a keyrole in influencing the climate-related policies of the companies we invest in, which
includes climate-centered asset stewardship that ensures boards and executives
are implementing proper management and oversight of their company’s climate
risk exposure; leveraging climate data to innovate investment solutions; investmentworthy solutions that include exclusionary screening, mitigation and adaptation;
as well as climate-focused reporting that improves clients’ understanding of theirstrategy performance against climate goals and targets.

2021 ESG REPORTS U S TA I N A B L E M A R K E T S I N I T I AT I V E

In 2020, His Royal Highness the Prince of Wales (HRH) launched the Sustainable
Markets Initiative (SMI), a network of global CEOs working together to build
prosperous and sustainable economies that generate long-term value through thebalanced integration of natural, social, human, and financial capital. In 2021, State
Street’s Chairman and CEO Ron O’Hanley convened the CEOs of some of the world’s
largest asset managers and owners to form SMI’s Asset Manager and Asset Owner(AMAO) Task Force at the request of HRH, to work on meaningful and actionable
plans to help accelerate the world’s transition to a sustainable future.
Read more in Stakeholder Engagement >In early 2022, State Street informed companies in major indices in the US.,. Canada,
U.K., Europe, and Australia that we will expect them to align their climate-related
disclosures to the Task Force on Climate-related Disclosures framework in the
coming years.
Read more in Asset Stewardship >SDG10: Reduced Inequalities
2021 was the first full year of our 10 Actions to Address Racism and Inequality.
We made significant progress toward each of our goals and also announced ourcommitment to undertake a civil rights audit. These 10 Actions coordinate efforts
from across State Street to effect change within our company and industry. State
Street is dedicated to expanding diversity among our suppliers and promoting
engagement with suppliers owned by minorities, women, veterans, and members of
the LGBTQ+ and disability communities. We strive to create more opportunities fordiverse suppliers and assist them in growing their businesses and increasing theirinvolvement in local communities.
Read more in Inclusion, Diversity, and Equity >

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Action No. 9 of our 10 Actions to Address Racism and Inequality set a goal toestablish combating racism as one of the priorities for our State Street Foundation.
To that end, in 2021, SSF administered grants and began offering 2:1 matching gifts
for a selection of organizations that are tackling racial equity. We also implemented
guidelines for racial equity grantmaking in Boston and plan to expand thoseguidelines globally in the coming years.
Read more in Corporate Citizenship >In 2021, our asset stewardship team collaborated with Russell Reynolds Associates
and the Ford Foundation to study best practices for effective oversight of racialand ethnic IDE. The result was a set of timely recommendations on how boards canelevate their IDE focus.
Read more in ESG Integration >2021 ESG REPORT

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UN GLOBA LCOMPAC T

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A L I G N M E N T W I T H T H E U N I T E D N AT I O N S G L O B A L C O M PA C T P R I N C I P L E S

UNGC PRINCIPLEREFERENCEC O M M E N TA R Y

Principle 1: Businesses
should support andrespect the protection ofinternationally proclaimed
human rights

Monitoring Human
Rights Risks in
Our Supply Chain

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

Principle 2: Make sure thatthey are not complicit inhuman rights abuses

Monitoring Human
Rights Risks in
Our Supply Chain

Our procurement sourcing program helps ensure that our global
procurement due diligence processes are in accordance with theUnited 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 a policy in place prohibiting child and/or forced labor, whether
their policy extends to their own suppliers and subcontractors, andto provide tangible proof of the policy.

Principle 3: Businesses
should uphold the freedomof association and theeffective recognition of theright to collective bargaining

Employee
Experience

State Street is committed to adherence to local laws regarding thefreedom of association and collective employee action. State Street
employees in six of our European offices participate in collective
bargaining agreements, totaling 3.0 percent of State Street
employees globally.

Principle 4: The eliminationof all forms of forced andcompulsory labor

Monitoring Human
Rights Risks 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 of child labor

Monitoring Human
Rights Risks 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 for their suppliers and subcontractors
including reference to risks for incidents of child labor.

Human RightsLabor

2021 ESG REPORT

Principle 6: The eliminationof discrimination in respectof employment andoccupation

Inclusion,
Diversity, andEquityInclusion and diversity, along with building a more equitable State
Street, are central to our company’s values. In 2021, we continued
to support our 10 Actions to Address Racism and Inequality, andannounced our commitment to undertake a civil rights audit.
Our approach to inclusion and diversity is built by talent pipeline,
accountability, policy, employee networks, and learning anddevelopment. With regard to promoting diversity at the board
level, we brought on two directors at the 2021 annual meeting ofshareholders that self-identify as racially diverse, and four out of
13, 30 percent, of our board directors self-identify as female as ofApril 20, 2022.

Principle 7: Businesses
should support aprecautionary approach toenvironmental challenges

Climate Change

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

Principle 8: Undertake
initiatives to promote
greater environmental
responsibility

Climate Change

We track our performance in energy use, greenhouse gas
emissions, water use, waste generation, and recycling rate and wework with the companies within our portfolios to help them monitor
and manage their footprints. We maintained carbon neutrality for
Scope 1, Scope 2, and corporate travel GHG emissions throughcarbon offsets and continue investing in renewable energy inprojects across the world.

Principle 9: Encourage thedevelopment and diffusionof environmentally friendly
technologies

ESG Integration

We provide R-FactorTM, the first ESG scoring system that offers
companies a road map on how to manage and disclose their
ESG practices, to help our clients and portfolio companies better
understand their ESG characteristics and see how well they meetthe marketplace’s expectations. In 2021, our Commercial Real Estateteam developed a climate risk scorecard to assess both physicaland transition risks related to climate change at each property in our
portfolio.

Principle 10: Businesses
should work against
corruption in all its forms,
including extortion andbribery

Risk, Ethics, andCompliance

As a trusted fiduciary and partner to the world’s leading institutions,
State Street holds the highest standards of risk excellence andcompliance. In 2021, with a global workforce working both in theoffice and remotely, our operational and cyber resiliency was once
again core to our strategy. With the security of all our stakeholders
front of mind, we regularly and diligently tested our systems,
carried out reconciliations and processes, and made important
improvements. Thanks in part to this commitment to protecting oursystems, State Street experienced no major incidents over the year.
Additionally, we continued improving our policies, guidance, andtraining on risk culture and compliance.

Environment

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2021 ESG REPORTS TAT E S T R E E T 2021 E S G R E P O R T - A P P E N D I X

EU DIREC TI V E ON
NON - FIN A NCI A L
REP OR TING
CONTENT LIS TINGS

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EU DIRECTIVE ON NON-FINANCIALREPORTING CONTENT LISTINGSThe EU Directive on Non-Financial Reporting outlines certain requirements forcorporate disclosures that companies of a certain size must comply with. State
Street is subject to these requirements. Below is an index of information foundwithin our 2021 Report, aligned with the requirements of the EU directive.

Environmental matters• Climate Change• Our Business• SASB Report (Incorporation of Environmental, Social, and Governance Factors in
Investment Management & Advisory)• SASB Report (Software and IT Services Response)• TCFD Report (Physical Risks Associated with Climate Change, Investment Risks
Associated with Climate Change)• GRI (Material Topic: Climate Change)• GRI (Material Topic: ESG Integration)• UN Sustainable Development Goals

Social and employee matters• Inclusion, Diversity, and Equity• Employee Experience• Corporate Citizenship• SASB Report (Employee Diversity and Inclusion)• SASB Report (Recruiting and Managing a Global, Diverse, and Skilled Workforce)• GRI (Material Topic: Inclusion, Diversity, and Equity)• GRI (Employee Experience)• UN Global Compact• UN Sustainable Development Goals

2021 ESG REPORT

Respect for human rights• Climate Change• Monitoring Human Rights Risks in Our Supply Chain• Inclusion, Diversity, and Equity• SASB Report (Inclusion, Diversity, and Equity)• SASB Report (Recruiting and Managing a Global, Diverse, and Skilled Workforce)• GRI (Material Topic: Inclusion, Diversity, and Equity)• UN Global Compact

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

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EEO -1 REP OR T

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S TAT E S T R E E T C O R P O R AT I O N

M MaleEQUAL EMPLOYMENT OPPORTUNITY

F Female2020 Employer Information Report EEO-1

1

2020

Hispanic

Black orAfricanAmericanWhite

Native Hawaiian
or PacificIslander

M

F

M

F

M

F

M

F

Exec/Sr. Level
Officials& Mgrs

8

2

182

88

5

1

0

0

First/Mid- Level
Officials & Mgrs

86

68

2135

1150

77

70

3

2

Professionals

176

133

2525

1707

185

195

4

3

Sales Workers

14

4

157

53

2

3

0

0

Administrative
Support

50

75

242

304

62

103

2

3

2020 Total

334

282

5241

3302

331

372

9

8

2020

Asian

AmericanIndian or
Alaskan Native

Two or More
Races

M

F

M

F

M

F

Exec/Sr. Level
Officials& Mgrs

17

10

0

0

0

2

First/Mid- Level
Officials & Mgrs

528

274

5

2

28

14

Professionals

1170

935

5

8

49

26

Sales Workers

10

6

0

0

1

0

Administrative
Support

103

139

2

2

11

10

2020 Total

1828

1364

12

12

89

52

2021 ESG REPORT

Total

2020

1

Grand Total

M

F

Exec/Sr. Level
Officials& Mgrs

212

212

315

First/Mid- Level
Officials & Mgrs

2862

2862

4442

Professionals

4114

4114

7121

Sales Workers

184

184

250

Administrative
Support

472

472

1108

2020 Total

7844

7844

13236

At the time of publication of this report, our 2021 EEO-1 filing was not yet certified.
When available, it will be linked from www.statestreet.com/cr.

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A S SUR A NCE
LE T TER

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Independent Assurance Statement to State Street
ERM Certification and 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 2021
Environmental, Social and Governance (‘ESG’) Report (‘the Report’) as set out below.
Engagement summary
Our engagement was designed to provide assurance on whether:

the Report presents a complete and balanced presentation of State Street’s ESG
activities and performance in the 2021 reporting year in accordance with the GRI
Standards (‘Core’ option);the 2021 data for the following indicators are fairly presented, in all material
respects, in accordance with the reporting criteria:

Scope of our
assuranceengagement

Total Scope 1 GHG emissions (metric tonnes CO2e)

Total Scope 2 GHG (location and market-based) emissions (metrictonnes CO2e)

Total Scope 3 GHG emissions (metric tonnes CO2e) for 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

Reportingcriteria

Total water usage – absolute (million cubic feet) and per employeeTotal waste – absolute (short tons) and recycling rate percentage.

GRI Standards
WBCSD/WRI GHG Protocol (2004, as updated January 2015)
State Street’s internal reporting criteria and definitions.

Assurance
standard

ERM CVS’ assurance methodology, based on the International Standard on Assurance
Engagements ISAE 3000 (Revised).

Assurance level

Limited assurance.

Respective
responsibilities

State Street is responsible for preparing the Report and for the collection andpresentation of the information within it.
ERM CVS’ responsibility is to provide conclusions on the agreed scope based on theassurance activities performed and exercising our professional judgement.

Our conclusions
Based on our activities, and noting the exclusions explained in the ‘Limitations’ paragraph below, nothing hascome 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 2021 reporting year in accordance with the GRI Standards (‘Core’ option);
 the 2021 data for the following indicators are fairly presented, in all material respects, in accordancewith the reporting criteria:o Total Scope 1 GHG emissions in metric tonnes CO2eo Total Scope 2 GHG (location and market-based) emissions in metric tonnes CO2eWBCSD/WRI GHG Protocol (2004, as updated January 2015)

criteria

State Street’s internal reporting criteria and definitions.

Assurance
standard

ERM CVS’ assurance methodology, based on the International Standard on Assurance
2021 ESG REPORTEngagements ISAE 3000 (Revised).

Assurance level

Limited assurance.

Respective
responsibilities

State Street is responsible for preparing the Report and for the collection andpresentation of the information within it.
ERM CVS’ responsibility is to provide conclusions on the agreed scope based on theassurance activities performed and exercising our professional judgement.

Our conclusions
Based on our activities, and noting the exclusions explained in the ‘Limitations’ paragraph below, nothing hascome 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 2021 reporting year in accordance with the GRI Standards (‘Core’ option);
 the 2021 data for the following indicators are fairly presented, in all material respects, in accordancewith the reporting criteria:o Total Scope 1 GHG emissions in metric tonnes CO2eo Total Scope 2 GHG (location and market-based) emissions in metric tonnes CO2eo Total Scope 3 GHG emissions in metric tonnes CO2e for 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; and Category 7 – Employee
commutingo Total Water usage – absolute (million cubic feet) and per employeeo Total Waste – absolute (short tons) and recycling rate percentage.


the Report includes information required by the European Union Directive on Non-Financial Reporting,as well as information for the Taskforce on Climate-related Financial Disclosure (TCFD) and the United
Nations Global Compact (UNGC).

Our assurance activities
We planned and performed our work to obtain all the information and explanations that we believed werenecessary to provide a basis for our assurance conclusions. A multi-disciplinary team of corporate responsibility
and assurance specialists performed the following activities:
 A review of external media reporting relating to State Street to identify relevant sustainability issues in
the reporting period.
 Attendance at regular teleconference meetings with the reporting team and report writers throughout thewriting process to understand the development of the Report and issues raised during the process.
 Virtual interviews with management representatives responsible for the sustainability strategy
implementation.
 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 the2021 performance data and related disclosures for the topics covered in the Report.
 A review of a sample of corporate level qualitative and quantitative evidence supporting the reported
information.
 For the 2021 data on GHG emissions, water usage and waste, virtual interviews with the external
company responsible for collecting and consolidating utility data across State Street’s operations as well
as a review of the completeness and accuracy of the data including unit and emission conversion
factors for GHG emissions, the reasonableness of estimations and extrapolations and the accuracy ofthe data consolidation.
 A check on whether the Report is in accordance with the GRI Standards (‘Core’ option) and includes
relevant information for the European Union Directive on Non-Financial Reporting, TCFD and the
UNGC.
 A check of the consistency of the financial performance data disclosed in the Report with State Street’s
2021 Form 10-K, where relevant.
The limitations of our engagement
Due to travel restrictions relating to COVID-19, our assurance activities consisted of desktop reviews of data
and related information, and virtual meetings and interviews with State Street personnel responsible for thecontent of the Report.
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 2021. We have not assured the personal views expressed in the CEO Statement or the Letter
included in the Report.
While we have confirmed that the Report is ‘in accordance’ with the GRI Standards (‘Core’ option), we have not

219

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processes (including IT systems and internal review processes) used for collecting and reporting the2021 performance data and related disclosures for the topics covered in the Report.
 A review of a sample of corporate level qualitative and quantitative evidence supporting the reported
information.
S T A T E SFor
T R theE E T2021
C O RdataP O RonA T GHGI O N emissions, water usage and waste, virtual interviews with the external
company responsible for collecting and consolidating utility data across State Street’s operations as well
as a review of the completeness and accuracy of the data including unit and emission conversion
factors for GHG emissions, the reasonableness of estimations and extrapolations and the accuracy ofthe data consolidation.
 A check on whether the Report is in accordance with the GRI Standards (‘Core’ option) and includes
relevant information for the European Union Directive on Non-Financial Reporting, TCFD and the
UNGC.
 A check of the consistency of the financial performance data disclosed in the Report with State Street’s
2021 Form 10-K, where relevant.
The limitations of our engagement
Due to travel restrictions relating to COVID-19, our assurance activities consisted of desktop reviews of data
and related information, and virtual meetings and interviews with State Street personnel responsible for thecontent of the Report.
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 2021. We have not assured the personal views expressed in the CEO Statement or the Letter
included in the Report.
While we have confirmed that the Report is ‘in accordance’ with the GRI Standards (‘Core’ option), we have notassured the additional information in the GRI Table in the Appendix.
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.
Our observations
We have provided State Street with a separate Management Report with our detailed (non-material) findings
and recommendations.

Beth Wyke
Partner, Head of Corporate Assurance
April 20th, 2022
ERM Certification and Verification Services Inc.
www.ermcvs.com | post@ermcvs.com
ERM CVS is a member of the ERM Group. The work that ERM CVS conducts for clients is solely related to independent
assurance activities and auditor training. Our processes are designed and implemented to ensure that the work weundertake with clients is free from bias and conflict of interest. ERM CVS and the ERM staff that have undertaken thisengagement work have provided no consultancy related services to State Street in any respect.

2021 ESG REPORT221

State Street Corporation
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