NT World Green Transition Index Fund

Product Name	NT World Green Transition Index Fund
Issuer	Northern Trust Asset Management
Category	Investment
Type	Fund or Trust
Target	Wholesale, Institutional
Certified Since	2020

Asset Classes	International equities
Markets	New Zealand, Australia
Investment Approaches	Sustainability themed, Best in class screening
It Includes:	Green property Renewable energy and energy efficiency Sustainable land and agricultural management Sustainable water
It has some level of screening for:	Armaments Fossil fuels Nuclear power Tobacco
It fully excludes:	Human rights abuses Labour rights violations
Broker	Responsible Returns
URL	https://www.responsiblereturns.com.au/investment-options/nt-world-green-transition-index-fund/profile

Overview

The NT World Green Transition Index Fund seeks to closely match the risk and return profile of the MSCI World Custom ESG Climate Series A Index. The Index combines Northern Trust’s long-standing Environmental, Social and Governance (ESG) approach which seeks to exclude companies with significant exposure to tobacco, conventional weapons & controversial weapons, and incorporates climate-centred-metrics to construct a climate-aware, passive solution. The fund offers a combination of negative exclusions allowing the strategy to be fully free of exposure to companies with fossil fuel reserves and significantly decarbonised from a carbon emissions intensity perspective and tilts towards companies benefiting from the energy transition and helps to mitigate against climate change risks.

Description

The NT World Green Transition Index Fund seeks to closely match the risk and return profile of the Northern Trust designed MSCI World Custom ESG Climate Series A Index, combining Northern Trust’s long-standing custom ESG approach with climate-centered-metrics to construct a holistic climate-aware, index strategy. Developed with clients to define a thoughtful approach to fossil fuel divestment the fund provides a hedge against systematic climate change risks aiming to:

Avoid investing in companies that operate in violation of the UN Global Compact, or have business involvement with tobacco, thermal coal or weapons;

Reduce the carbon footprint of the portfolio by removing companies with heavy exposure to carbon reserves and the top 10% of carbon emitters;

Reduce carbon intensity and almost 100% reduction in potential carbon emissions associated with fossil fuel reserves;

Identify and tilt towards companies benefiting from the low-carbon energy transition.

Focus on Climate factors contributing to UN Sustainable Development Goals 7, 9, 11, 12, 13 by:
- achieving carbon intensity reduction, - SDG 13
- avoidance of potential emissions and – SDG 13
- focus on “Climate-Positive companies” – SDG 7, 9, 11, and 12

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