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Asset Management News

Northern Trust Asset Management Launches Natural Capital Paris-Aligned Strategy

The Northern Trust World Natural Capital Paris-Aligned Index Strategy Provides Institutional Clients with an Enhanced Net Zero Solution

LONDON – Northern Trust Asset Management (NTAM), one of the world’s leading investment managers, continues to expand its sustainable index investment solutions with the launch of the World Natural Capital Paris-Aligned Index strategy.

Efficiently integrating climate and natural capital considerations, the strategy uniquely combines alignment with the 1.5oC decarbonization pathway, nature-aware tilts and screens and proprietary Northern Trust Custom ESG exclusions, acknowledging the intrinsic synergies in the twin crises of climate change and biodiversity loss.

“We are delighted to launch this strategy for investors across EMEA and APAC, recognizing that nature related risk mitigation and adaptation can play a significant role in achieving the Paris Agreement global warming objective,” said Julie Moret, global head of sustainable investing and stewardship at NTAM. “Investors are increasingly considering a wider spectrum of interconnected environmental considerations when looking to reflect the objectives of a transition to a climate-resilient economy. This strategy offers a compelling solution for them.”

The strategy aims to closely match the risk and return characteristics of the MSCI World Natural Capital Paris-Aligned Equity Select Index, a customized index that screens companies linked to ecosystem loss and water pollution, and to those that are mis-aligned with UN SDGs 14 (Life Below Water) and SDG 15 (Life on Land). There is an uplift in exposure to companies with nature-related transition opportunities including those with environmental impact solutions revenue and positive transition preparedness considering land use and biodiversity, resource use and emissions, effluents and waste.

Marie Dzanis, head of NTAM in EMEA, said: “As the world is moving towards net-zero targets, we are seeing an increased interest in the solutions supporting those commitments. With this strategy, based on more than 30 years of experience managing socially responsible strategies, we’re looking to efficiently integrate climate and natural capital considerations.”

Sebastian Lieblich, head of ESG and Climate Indexes, MSCI said: “The range of MSCI climate indexes is specifically designed to help investors develop portfolios that meet their net zero commitments, integrate climate considerations and fulfil their investment objectives. We are pleased to support this launch with an index seeking efficient exposure to broad global equity markets with risk-controlled tilts towards positive climate change and natural capital-related objectives.”

Entrusted with US$1 trillion of investor assets, as of December 31, 2022, NTAM is among the world’s largest investment managers. The firm helps investors navigate changing market environments so they can confidently realize their long-term objectives. Northern Trust has more than 30 years of sustainable investing expertise and innovation, is a UNPRI signatory and is a founding member of the One Planet Asset Manager Initiative, which sees member asset managers commit to advance the understanding of the implications of climate-related risks and opportunities within long-term investment portfolios through engagement, research and sharing of investment practices. It is also a founding member of the Climate Action 100+ initiative that engages with 166 companies representing 80%+ of corporate greenhouse gas emissions globally and an official endorser of the Financial Stability Board Task Force on Climate-related Financial Disclosure (TCFD) – a consortium established in 2015 to develop a voluntary, consistent framework for use by companies to disclose climate-related financial risk to investors and other stakeholders. 

ENDS

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long-term objectives. Entrusted with US$1 trillion of investor assets as of December 31, 2022, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management to craft innovative and efficient solutions that deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect, and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Belvedere Advisors LLC, Northern Trust Asset Management Australia Pty Ltd and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 25 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2022, Northern Trust had assets under custody/administration of US$13.6 trillion, and assets under management of US$1.2 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Twitter @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

IMPORTANT INFORMATION

This material is directed to professional and eligible counterparties only and should not be relied upon by retail investors. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Opinions and forecasts discussed are those of the author, do not necessarily reflect the views of Northern Trust and are subject to change without notice.


Investing involves risk- no investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

Northern Trust Asset Management (NTAM) is composed of Northern Trust Investments, Inc. (NTI), Northern Trust Global Investments Limited (NTGIL), Northern Trust Fund Managers (Ireland) Limited (NTFMIL), Northern Trust Global Investments Japan, K.K. (NTKK), NT Global Advisors, Inc., 50 South Capital Advisors, LLC,  Belvedere Advisors  LLC, Northern Trust Asset Management Australia Pty Ltd and investment personnel of The Northern Trust Company of Hong Kong Limited (TNTCHK) and The Northern Trust Company (TNTC).© 2022 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A.

Issued in the United Kingdom by Northern Trust Global Investments Limited. Issued in the EEA by Northern Trust Fund Managers (Ireland) Limited.

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