PHILIP VERNARDIS GLOBAL LEAD OF ASSET STEWARDSHIP REPORTING , STATE STREET GLOBAL ADVISORS manage and disclose their ESG practices , allowing them to take the action needed to enhance their scores .”
Vernardis explains that State Street Global Advisors ’ unique R-Factor™ scoring system is fully integrated into their asset stewardship programme . In 2020 , they started taking voting action against board members at companies in their main indices that were that were “ laggards ”( i . e ., in the lowest 10 % in their industries ) based on their R-Factor™ scores and could not effectively articulate how they planned to improve their score . Starting in 2022 , they are expanding their voting screen to include those companies that have been consistently underperforming their peers on their R-Factor scores ( i . e . being in the lowest 30 % in their industries ) for multiple years , and may take voting action unless they see meaningful change .
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