This latest enhancement comes at a time of heightened awareness of the effects of carbon emissions on the environment, particularly as governments worldwide implement taxes and regulation on emissions. The development of environmental emission analytics is in line with Northern Trust’s commitment to supporting responsible investment policies through asset management and asset servicing solutions.
“Increasingly, we are seeing investors turn their attention towards measures that attempt to accurately attribute environmental impact as an extension to established performance and risk analytics,” said Peter Holman, head of client servicing for institutional investors in EMEA, at Northern Trust. “But the ability to accurately assess the carbon footprint of a portfolio is largely constrained by the lack of consistent or comprehensive environmental data disclosed by companies.”
Northern Trust provides clients with environmental analytics based on data from Trucost Plc, through the Style Research Portfolio Analyzer (SRPA). Trucost which was established to help organisations, investors and governments understand the environmental impact of business activities in financial terms, claims to hold the world’s most comprehensive database on corporate greenhouse gas emissions.
“By combining the analytics received through Trucost’s methodology with Northern Trust’s existing performance and analytics capabilities, we provide consolidated information to clients, enabling them to compare the carbon footprints of their managers alongside more traditional risk metrics and style analyses,” said Ian Castledine, global head of investment risk product for asset servicing at Northern Trust. “Using our integrated environmental analytics solution, trustees can make comparisons between funds and individual managers, and improve communications on environmental performance with stakeholders and regulatory bodies. This may ultimately result in a reduced environmental impact of their investments, without sacrificing financial performance.”
The new capability is an innovation of Northern Trust’s Investment Risk and Analytical Services, which has provided risk and performance services to clients for more than 30 years. Recent developments include enhanced data for comprehensive Environmental, Social and Governance monitoring of client portfolios with its Compliance Analyst product. A recent member of the United Nations Principles for Responsible Investment (UN PRI) and member of the Institutional Investors Group on Climate Change (IIGCC), Northern Trust also has more than US$9 billion in socially screened assets under management, including index options such as the Northern Global Sustainability Index Fund.
Northern Trust does not review/approve the contents/conclusions provided by Trucost and offers this on an information only basis for use as the client deems appropriate.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2009, Northern Trust had assets under custody of US$3.6 trillion, and assets under investment management of US$611 billion. For 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.
Northern Trust operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority.
Northern Trust in Hong Kong is a securities company regulated by the Securities and Futures Commission.
Northern Trust in Singapore is a foreign wholesale bank regulated by the Monetary Authority of Singapore.
Northern Trust operates in China as a Representative Office and is regulated by the China Banking Regulatory Commission.
Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, Northern Trust Fiduciary Company (Guernsey) Limited and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission.
Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission.
Northern Trust Global Services is authorised and regulated in the Netherlands by De Nederlandsche Bank.
Northern Trust Global Services Limited Luxembourg Branch is authorised and regulated by the Financial Services Authority and in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF) and Northern Trust Luxembourg Management Company S.A. is regulated by the CSSF.
Northern Trust Global Services Limited – Abu Dhabi. Representative Office, Licence number 13/238/2008.
Where Northern Trust’s UK entities undertake regulated business, they are authorised and regulated in the United Kingdom by the Financial Services Authorit.y
Northern Trust International Fund Administration Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Financial Regulator.
The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation.
Northern Trust Global Services Ltd (UK) Sweden Filial is a BCD Passported branch of Northern Trust Global Services Ltd a firm authorised and regulated in the UK by the Financial Services Authority (‘FSA’).