10 Actions to Address Racism and Inequality

Action:

Triple our Black and Latinx leadership (senior vice presidents+) and double our percentage of Black and Latinx populations over the next three years. Extend requirement to interview a diverse slate of candidates to positions at all levels.

2021 Progress:

• Improving representation of Black and Latinx employees in leadership roles
• Held leadership accountable via pay decisions for our Diversity Goals
• Revised global definition for diverse candidate slate requirement

Action:

Examine all of State Street’s development and advancement programs and processes to improve the mobility and development of Black and Latinx professionals.

2021 Progress:

• Leveraged partnerships and programs to drive career and personal development for Black and Latinx employees
• Required DEI performance priority for all managers and recommended for all employees
• Launched mentorship and sponsorship pilots within major business areas to measure outcomes and outline best practices

Action:

Enlist our entire workforce in learning opportunities and conversations around anti-racism and equity. Make these approaches and programs available to our clients.

2021 Progress:

• ~38,000+ employees globally completed unconscious bias training as of June 2021
• Ongoing anti-racism sessions led by business leaders across our company
• Offering public Justice, Equity & Inclusion Series workshops to support anti-racism skill development

Action:

Systematically review governance models within key management committees to ensure inclusion and diverse representation.

2021 Progress:

• Provided toolkit for senior management committee chairs to discuss inclusive behaviors and actions
• Launched a baseline survey to measure effective governance, amplified culture traits, overall inclusion and diversity within each committee

Action:

Increase our spend with diverse suppliers over the next three years. Hold ourselves accountable for strengthening Black- and Latinx-owned businesses.

2021 Progress:

• Issued $850M senior subordinated bonds using an underwriting syndicate made up equally of banks and Black- and Latinx-owned companies
• Launched supplier diversity website

Action:

Work with our board to add Black and Latinx directors within 18 months and to expand its diversity efforts.

2021 Progress:

• Added Julio Portalatin and John Rhea to our Board, increasing racial diversity to 25%

Action:

Partner with State Street Global Advisors’ Asset Stewardship and determine what State Street can learn from others to develop best practices and evolve to a best-in-class organization in combatting racism and attracting, motivating, and retaining Black and Latinx talent.

2021 Progress:

• SSGA called on companies to disclose more detail on board and workforce diversity
• SSGA 2021 stewardship priorities focused on lack of racial and ethnic diversity
• Partnered with Russell Reynolds Associates and Ford Foundation to issue a report on best practices for effective oversight of DEI

Action:

Lead an effort with the asset management industry to attract and advance more Black and Latinx people into our profession.

2021 Progress:

• Formalized partnerships with four organizations with a goal of providing career exploration, DEI best practices, employment and professional development opportunities

Action:

Establish combatting racism as a clear priority pillar alongside education and workforce development, and reprioritize State Street Foundation spending accordingly.

2021 Progress:

• In June 2020, we committed to making ~$6M in grants to relevant nonprofit organizations over the next five years
• Offering 2:1 matching gifts donating to organizations addressing racial equity issues
• Increased employee volunteer time-off policy from 2 to 4 days**

Action:

Leverage Juneteenth as a day of reflection to create awareness and establish a State Street-wide day of service focused on better understanding racism and giving back to our communities.

2021 Progress:

• Provided World Anti-Racism Reflection Moments (WARM) for employees and families through monthly global opportunities for reflection and community service to engage on anti-racism and social justice issues
• Launched June’s racial equity and social justice 21-day challenge, a collection of short daily lessons, culminating with a week of community service actions, in honor of Race Unity Day and Juneteenth

^* Black and Latinx, US only; Black, Asian and Minority Ethnic (B.A.ME), globally

^** Inclusive of non-political volunteering in civic engagement and social justice causes