State Street Global Advisors has launched the State Street Sustainable Climate Bond Funds.

SSGA says the funds aim to facilitate investors to significantly reduce their exposure to carbon emissions and fossil fuels, while also re-allocating capital to fund the transition to a low-carbon future whilst aligning with the goals of the Paris Agreement.

Benchmarked to the Bloomberg Barclays US, Euro and Global Corporate Bond Indices, the three funds apply screens and tilts that help mitigate and adapt for climate impact. These include best-in-class ESG data to reduce portfolio carbon intensity while excluding controversial issuers.

Varma Mutual Pension Insurance Company, an earnings-related pension insurance company in Finland, are investing a total of USD275 million in the new funds.