AMSTERDAM, March 15, 2018 — State Street Global Advisors, the asset management arm of State Street Corporation (NYSE:STT), announced today the publication of its latest white paper, Harnessing ESG as a n Alpha Source in Active Quantitative Equities . The report examines environmental, social and governance factors (ESG) as a source of alpha; and h
ow ESG can be used as a measure of quality when evaluating stocks. According to the paper, over the last half century, the composition of a firm’s value has shifted dramatically from tangible to intangible assets. Evidence suggests that the value of some intangible assets may be more sensitive to environmental, social and governance (ESG) issues, which increases the importance of integrating ESG factors into investment decision making. Interest in ESG is already on the rise thanks to a shifting economic landscape, in which the greatest global risks facing people, institutions and economies over the next decade m ay come from threats outs id e of purely financial categories; from climate change through to a com pany’s culture.