Northern Trust Asset Management (NTAM) has extended the reach of its environmental, social and governance (ESG) scheme to the investors in Europe, the Middle East and Africa (EMEA) and Asia-Pacific (APAC) region.
The plan, called NT World Quality ESG Strategy, is already available for investors in the US since 2015.
Part of the company’s responsible quantitative investment solutions, the ESG plan is designed to tap high-value stocks and firms that have greater ESG ratings with a responsible investment approach and mitigating the threat of climate change.
A number of responsible quantitative investment tools from NTAM such as stress on quality businesses and on risk control methods form the basis of NT World Quality ESG Strategy.
NTAM sustainable investing and stewardship global head Julie Moret said: “We believe material environmental, social and governance factors are pre-financial indicators that can affect a company’s future financial viability and clients’ long-term risk-adjusted investment returns.
“When managed well, they can position a company for success and when mismanaged, they can result in significant risks.
“The intersection of high quality and highly rated ESG and quality factors means investors in this strategy may benefit from both factor-based investing and ESG characteristics.”
NTAM further noted that its ESG Strategy offers an inclusive approach on sustainability by including financial value and ESG account while selecting security parameter.
Using the plan, investors can receive information on various ESG nodes that include several ESG metrics. The plan also enables investors to have no contact with some low-ranked ESG securities, help reduce the standard of carbon emission and others.
NT World Quality ESG Strategy has helped offsetting a 64% of CO2 intensity and reducing an 81% of CO2 potential emissions until March 31, 2022, stated NTAM. Early last month, Arab Fund for Economic and Social Development (AFESD) chose Northern Trust to deliver various asset servicing solutions for global custody, financial reporting, securities finance, private equity management and other functions.