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 institutional funds.
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.