NT launches climate aware EM index strategy

Northern Trust Asset Management has launched the Sustainable Emerging Markets Green Transition Index Strategy.

The strategy combines Northern Trust proprietary ESG exclusions with screens to minimize climate related risks with a tilt towards opportunities that benefit from the transition to a low carbon economy. Screens applied include fossil fuel exclusions and an energy screen to minimize current and potential exposure to carbon emissions and reduce exposure to any other associated risks. Positive tilts are then applied to companies with green revenues and a strong climate strategy by using the innovative MSCI Transition Risk Management Score.

The strategy uses the MSCI ACWI universe via custom indices designed by Northern Trust Asset Management and managed by MSCI.