Northern Trust has launched is climate focus report, as part of its ESG insights suite of its environmental, social and governance (ESG) investment analytics to deliver new climate risk reporting for global institutional investor clients.
It offers clients a range of carbon metrics, physical risk and transition risk detail at the portfolio level. These include detailed emissions information (including Scope 3), carbon intensity measures and forward-looking scenario pathway analysis.
The resulting information helps institutional investors assess key climate change risk factors against investments in their portfolio and compare them against representative benchmarks for absolute and relative analysis over time.
The Climate Focus Report also supports clients’ internal oversight and external disclosure obligations through its alignment with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) reporting recommendations.
The latest addition to the ESG Insights, which was launched last year, follows a recent enhancement to Northern Trust’s Performance Measurement service through the integration of ESG scores into its investment analytics tool, RADAR.
Clients can now access insights into potential links between ESG performance and investment performance by using new views created to show returns grouped by individual E, S and G pillar scores, in addition to an overall ESG score breakdown.
“As sustainability-focused monitoring requirements grow in number and become more complex, these solutions are intended to help institutions meet their obligations for assessing and reporting on both ESG and climate risk,” said Serge Boccassini, product lead, Investment Accounting and Analytic Solutions at Northern Trust.
He added, “This is the latest example of how Northern Trust is deploying its technology and analytics expertise to help clients integrate ESG considerations into investment decision-making.”
Northern Trust’s Climate Focus Report is generated by combining global custody asset information with data provided in partnership with ISS ESG, the responsible investment arm of Institutional Shareholder Services (ISS), a global provider of investment stewardship solutions.
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