State Street: Endorse A National Price on Carbon

State Street Corporation

Tell State Street to endorse the bi-partisan Energy Innovation and Carbon Dividend Act. [1]

Climate change is detrimental to global economic prosperity. According to Citigroup, GDP lost to climate change may reach $44 T by 2060. [2] Poorer air quality will harm public health, extreme weather will damage infrastructure, and heat stress will decrease agricultural production. [3]

Since State Street owns stock in all parts of the economy, the long-term success of the world economy is crucial to State Street's financial performance. This means that State Street has an enormous stake in preventing climate change.

Economists and the Intergovernmental Panel on Climate Change agree that pricing carbon is a concrete and cost-effective way to slow climate change. [4] The Energy Innovation and Carbon Dividend Act has been introduced in both Houses of Congress, and will help bring climate change under control by enacting a carbon fee and dividend into law. In addition to reducing emissions by 40%, the bill is projected to create 2.1 million additional jobs over the next decade. [5]

State Street publicly aims to be a leader in environmental sustainability, and looks to address business risks of climate change. [6] Many of the companies you invest in have already expressed support for similar carbon fee and dividend proposals, including Gap Inc., General Motors, Schneider Electric, IKEA, and Unilever. Now State Street needs to take action to support policy that protects long-term shareholder value by fighting climate change.

We ask State Street to endorse the Energy Innovation and Carbon Dividend Act [7] to help move the US towards cost-effective climate solutions.