Global custodian State Street has launched a carbon asset servicing and depositary service designed to make it easier for asset managers, owners and investors to integrate carbon-related assets into their portfolios.

It includes a range of fund administration and depositary services, including record-keeping, NAV calculation, reporting and other oversight functions.

The service has been developed on the back of growing demand for the asset class, according to State Street.

Given the immature status of carbon-related assets, the administration of such assets has typically relied on manual processes and disparate components, making it difficult for market participants to manage their carbon-related assets and the related data processes.

It is also forecast that the financial services industry will increase its spending by five-fold in the next five years. A study conducted by research firm Verdantix earlier this year predicts that spending will reach $256 million by 2027, compared to just $51 million in 2021.

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