With over 25 years of experience managing socially responsible portfolios and an ever increasing client base in diverse socially-screened strategies, Northern Trust offers a breadth of capabilities to build a complete portfolio solution incorporating environmental, social and governance (ESG) factors:
Responsible Investment Capabilities
We understand that there is a broad set of motivations driving our clients to into responsible investing. We have designed our suite of capabilities to give clients flexibility in their approach but the assurance that their strategies will be supported by the full resources of our world class investment management processes and execution.
Northern Trust has a history of working with our clients to deliver customised investment solutions to meet their needs. We have used this approach to develop unique funds within the responsible investing domain. First we worked with investors across Europe to identify common ESG concerns which we used to launch of our World Custom ESG fund in 2012; shortly after this we created our ground breaking Emerging Markets Custom ESG fund – the first index fund ever to offer emerging markets exposure combining ESG industry and norms-based screens and a unique governance screen.
Negative screens exclude companies with involvement in any of the following industries or activities that clients choose to restrict:
Positive screening includes companies with strong performance in any of the following ESG factors that clients choose to emphasize:
Best-of-Sector Stock Selection
Best-of-sector selects companies with the highest ESG record relative to sector peers. As a result, companies in industries traditionally screened out of responsible portfolios, such as oil and mining, are included in these portfolios. This reduces the sector-bias common in screened portfolios. Best-of-sector stock selection also creates an incentive for other companies within the industry to improve their social and environmental impacts.
Shareholder Advocacy describes investor efforts to submit and vote corporate proxy resolutions as a means of influencing company behavior. This strategy was successful in pressuring corporations to pull out of South Africa. It has also been instrumental in reporting minority hiring practices and improving environmental practices through adoption of the CERES principles (an environmental code of conduct).
Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. For more information, read our legal and regulatory information about individual market offices.
Northern Trust Asset Management comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc. and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to institutional investors, expert investors and professional investors only and should not be relied upon by retail investors.
Issued by Northern Trust Global Investments Limited.