Northern Trust Asset Management Introduces ESG Vector Score - Seite 2

“What’s unique about Northern Trust’s multi-dimensional score is that we built it by applying TCFD’s anticipatory framework on governance, strategy and risk management – beyond simply climate – to all ESG risks across the SASB Standards, resulting in a comprehensive assessment,” NTAM head of global product Sheri Hawkins said.

“Our ESG Vector Score leverages the practical insights we’ve gained over the past 30 years helping some of the most sophisticated and progressive global investors integrate ESG criteria into their investment portfolios,” Thomas said. “Managing more than $139 billion of ESG assets, we’ve observed firsthand the challenges of navigating the increasing volume of data providers, varying information, and levels of transparency as interest in ESG investing has accelerated. The Score solves this challenge, strengthening our ability to have a clearer picture of a company’s ESG-related business risks that could impact its performance.”

The firm’s recently launched ETFs in EMEA incorporate the use of the ESG Vector Score. Further, it plans on integrating the Score into new equity and fixed income ESG investment strategies they are building. This will enable NTAM to offer investors ESG-integrated “building blocks” with a singular, consistent ESG framework. “A full multi-asset suite of products with a consistent sustainability methodology across asset classes is a current gap in the marketplace. The Score marks an important foundational step in filling it,” Hawkins said.

Hawkins further stated that “NTAM plans on using the ESG Vector Score to assist in prioritizing its corporate engagement, thus further aligning our sustainable investment platform and stewardship. This allows us to lead more deliberate engagements, as well as track progress over time with a consistent metric.”

Since ESG reporting and requirements are continually maturing, NTAM designed the ESG Vector Score framework intentionally as open-architecture, allowing for the flexibility of incorporating additional best-in-class data as it becomes available. This will enable it to support multiple data sources and new industry requirements over time.

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$1.1 trillion of investor assets as of March 31, 2021, 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.