Northern Trust Asset Management has launched a green transition index strategy for Australian and New Zealand investors, as a part of sustainability solution expansion.
The NT World Green Transition Index fund aimed to match the risk and return profile of a Northern Trust designed climate environmental, social and governance (ESG) index and would offer negative exclusions and the strategy free of exposure to companies with fossil fuel reserves and tilting towards those benefitting from the energy transition with green revenues, the firm said.
Northern Trust Asset Management in Australia and New Zealand head, Bert Rebelo, said: “As investors globally are taking steps to decarbonise their portfolios, we believe there is an economic upside to this low-carbon transition, and we’re committed to helping investors capture the potential benefits and achieve their most important goals.
“This latest strategy underlines Northern Trust Asset Management’s continued innovation, industry collaboration and focus on sustainability. We strive to ensure we meet our clients’ needs and better serve investors on their journey to a lower carbon economy.”
The company said the NT World Green Transition Index fund attained certification from the Responsible Investment Association Australasia (RIAA) which recognised products that align capital with achieving a healthy and sustainable society, environment and economy.
The new strategy was developed with investment firm Cambridge Associates.