The offerings are the Northern Trust World ESG Leaders Equity Index Fund and the Northern Trust Emerging Markets ESG Leaders Equity Index Fund.

Northern Trust Asset Management  has launched two funds designed to achieve returns and not fall foul of environmental, social and governance principles, adding to the firm's range of funds that hold a total of $10.5 billion of assets.

The offerings are the Northern Trust World ESG Leaders Equity Index Fund and the Northern Trust Emerging Markets ESG Leaders Equity Index Fund.

The US-headquartered business said the portfolios are the first European funds to track the MSCI ESG Leaders indices. They complement an existing MSCI ESG Leaders fund available to US investors.

The MSCI World ESG Leaders Index consists of best-in-class large and mid-cap companies in 23 developed market countries. The MSCI Emerging Markets ESG Leaders Index consists of best-in-class large and mid-cap companies across 24 emerging markets countries.

“The companies in these funds are at the forefront of meeting ESG criteria in their particular universe, asset class or category,” said Mamadou-Abou Sarr, global head of ESG investing at Northern Trust Asset Management. “Companies are screened on a number of factors from involvement in controversial weapons, alcohol or tobacco and then rated according to their adherence to ESG principles - such as human rights, rights of employees, consideration for recycling and renewable energy, and independent constitution of boards."