Northern Trust Asset Management has introduced the ESG Vector Score that assesses companies ESG criteria impacting their operating performance.
The score focuses on the magnitude and direction of key ESG issues likely to have a financial impact on companies and a portfolio’s performance. NTAM says it provides a consistent, transparent methodology to gain greater clarity when building and managing sustainable portfolios.
“Our ESG Vector Score leverages the practical insights we’ve gained over the past 30 years helping some of the most sophisticated and progressive global investors integrate ESG criteria into their investment portfolios. The Score aligns with the firm’s philosophy that investors should be compensated for the risks they take – in all market environments and any investment strategy. We consider this an essential tool to measure how a company is managing its ESG business risks,” NTAM president Shundrawn Thomas said.