The US-based firm said that its existing strategy – open to US investors since 2015 – has already slashed carbon dioxide intensity by 64 per cent.

Northern Trust Asset Management has launched the NT World Quality ESG Strategy for investors in certain parts of Europe and Asia. The strategy has been available for US investors since 2015.

The strategy seeks to efficiently target high-quality stocks and companies with higher relative environmental, social and governance ratings whilst defining a responsible investment universe and managing climate change risk. 

The strategy takes a “holistic view on sustainability that incorporates both financial quality and ESG profile into security selection,” the firm said. This approach enables investors to access a differentiated ESG integration that not only incorporates ESG metrics, but removes exposure to certain lower-scoring ESG securities. It also aims to cut the carbon footprint relative to the benchmark.

The existing strategy has cut C02 intensity by 64 per cent since inception and cut potential emissions by 81 per cent (as at 31 March 2022).

“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,” Julie Moret, global head of sustainable investing and stewardship at NTAM, said.

NTAM oversees more than $100 billion in sustainable investments (as at 30 June 2022).