Clients of Northern Trust are be given access to a new suite of ESG analytics which allows them to screen their investment portfolios for specific environmental risks.
The new service allows investors to gain an idea of environmental risks at fund level, but also to drill down to compare key scores and carbon footprint metrics across different fund managers, portfolios, countries and sectors.
“Environmental factors are the driver behind a number of initiatives requiring greater monitoring of material risks and increased disclosures,” said Serge Boccassini, product lead, Investment Accounting and Analytic Solutions at Northern Trust.
“Our enhanced capabilities support clients in both areas – and can help them more closely incorporate the ‘E’ of ‘ESG’ into their decision-making. Northern Trust is committed to providing clients with deep analytical insights as they strive to meet their ESG responsibilities.”
Asset owners using the new service will be able to monitor changes in a fund’s environmental risk profile over time to manage stakeholder concerns, whether reputational or financial.
The service is also designed to support alignment to sustainable investment frameworks, including those from the UN-backed Principles for Responsible Investment (PRI).
This new solution is part of Northern Trust’s newly launched ESG Insights product suite, which was launched through its Investment Risk and Analytical Services (IRAS) group. It builds on the company’s Ratings Summary solution which was launched in April 2020.
Northern Trust’s IRAS group currently offers analytical support to asset owners and investment managers of more than US $5 trillion in assets, with consultants in London, Chicago, Melbourne and Singapore.