- Multiple approaches to incorporating ESG factors into portfolios, such as negative and positive screens, shareholder advocacy, and best-of-sector stock selection.
- Passive, active, and tax-efficient investment strategies may be used in combination with responsible investing techniques.
- Strong relationships with leading ESG specialist firms giving our clients access to industry leading research paired with seamless investment execution.
- Extensive experience managing portfolios to ESG indices from both major index providers and independent firms giving clients a cost-efficient approach to responsible investing.
- Pooled funds and separate accounts for scale, efficiency and customisation.
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.
Negative screens exclude companies with involvement in any of the following industries or activities that clients choose to restrict:
- Adult entertainment
- Animal Testing
- Environmental destruction
- Labor abuse
- Military weapons
- Nuclear Power
- Stem Cell
Positive screening includes companies with strong performance in any of the following ESG factors that clients choose to emphasize:
- Community Relations
- Charitable Giving
- Clean Energy
- Corporate Governance
- Employee Relations
- Environmental Policy
- Firm Diversity
- Human Rights
- Product Safety
- Union Rights
- Work/Life Benefits
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).
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This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail investors. It is issued by Northern Trust Global Investments Limited, authorised and regulated by the Financial Services Authority in the United Kingdom. Registered office: 50 Bank Street, Canary Wharf, London E14 5NT, registered in England 03929218.