November 01, 2012
Trust added solutions for institutional investors seeking socially responsible
investing options. ---
Through an agreement with MSCI ESG Indices and MSCI ESG
Research, and using MSCI’s environmental, social, and governance (ESG)
research, ratings and screening tools, Northern Trust will be able to provide
customizable ESG solutions to its clients.
Northern Trust clients looking to integrate ESG factors in
their investment portfolios can now access 79 indices ranging from global ESG
best in class to regional responsible investing themes, such as clean
technology, and further customize these to their requirements. Northern Trust
is also working with MSCI to create custom ESG indices for passive
According to a study conducted by Northern Trust in 2011,
“Customized Beta--Changing Perspectives on Passive Investing,” 44% of investors
surveyed indicated that their responsible investing allocations had increased
in the past two years.
“Investors are showing increased interest in analyzing their
financial portfolios to assess climate-change impact and risk, among other ESG
factors,” said Connie Lindsey, head of corporate responsibility at Northern
Trust. “This gives us an opportunity to provide clients with more advanced
capabilities related to ESG analysis. These new investment offerings are an
important part of Northern Trust’s commitment to ESG principles, in line with
the continued execution of our global corporate citizenship practices.”
Northern Trust manages approximately $17 billion in socially
screened, active and passive managed portfolios for clients across the globe.
This agreement adds to its existing portfolio of responsible investing
solutions, including the Northern Trust Global Sustainability Index.