Northern Trust updates its institutional ESG analyzes
The service offers carbon metrics, risk details, internal monitoring and external disclosure obligations
Asset manager Northern Trust has further enhanced its suite of environmental, social and governance (ESG) investment analysis to deliver new climate risk reports to global institutional investor clients.
The Climate Focus report, which is part of the asset manager’s suite of ESG Insights reporting solutions, provides clients with a range of carbon, physical and transition risk metrics at the portfolio level, including information detailed emissions, carbon intensity measurements and a prospective analysis of the scenario trajectory. .
The information obtained supports institutional investors, such as pension funds, by helping them to assess the main risk factors associated with climate change in relation to the investments in their portfolio and to compare them to representative benchmarks for absolute and relative analysis. over time.
It also supports internal oversight and external disclosure obligations of clients through its alignment with the report recommendations of the Financial Stability Board Working Group on Climate-Related Financial Disclosures.
This latest addition to the ESG Insights service follows a recent improvement in the company’s performance measurement service through the integration of ESG scores into its investment analysis tool, RADARTM. Clients can now access information on potential links between ESG performance and investment performance using new views created to display returns grouped by individual scores of pillars E, S and G, in addition to a breakdown overall ESG scores.
The Climate Focus report is generated by combining information on global custody assets with data provided in partnership with ISS ESG, the responsible investment arm of Institutional Shareholder Services, a global provider of investment management solutions.
The company’s ESG Insights solutions are delivered through its Investment Risk and Analysis Services group, which supports more than US $ 9 trillion in investments (as of June 30, 2021) by owners and asset managers around the world.