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:

  • Riaa icons 32 Green property
  • Riaa icons 10 Renewable energy and energy efficiency
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 31 Sustainable water

It has some level of screening for:

  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 50 Nuclear power
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations

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


Access research, videos and webinars on this fund

Sign up to learn more and get updates on ethical and responsible investing