Northern Trust AM launches new ESG strategy

By Penny Pryor

Northern Trust Asset Management (NTAM) has launched a World Natural Capital Paris-Aligned Index strategy to EMEA and APAC investors.

Northern Trust said the strategy combines alignment with the 1.5-degree Celsius decarbonization pathway, nature-aware tilts and screens and proprietary Northern Trust Custom ESG exclusions.

"Investors are increasingly considering a wider spectrum of interconnected environmental considerations when looking to reflect the objectives of a transition to a climate-resilient economy. This strategy offers a compelling solution for them," Julie Moret, global head of sustainable investing and stewardship at NTAM, said.

The strategy tracks the customised MSCI World Natural Capital Paris-Aligned Equity Select Index, which screens companies linked to ecosystem loss and water pollution, and to those that are mis-aligned with UN Sustainable Development Goal 14 (Life Below Water) and Sustainable Development Goal 15 (Life on Land). The index has an increased exposure to companies with nature-related transition opportunities.

"As the world is moving towards net-zero targets, we are seeing an increased interest in the solutions supporting those commitments. With this strategy, based on more than 30 years of experience managing socially responsible strategies, we're looking to efficiently integrate climate and natural capital considerations," Marie Dzanis, head of NTAM in EMEA, said.