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Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives.
Entrusted with $1 trillion in assets, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes.
As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect, and transparency.
About Northern Trust
Asset Management
In 2022, we acted effectively on behalf of our clients’ interests through sustained engagement with companies and independent proxy voting.
A Year of Stewardship
Total engagements
3,945
Julie Moret
Global Head of Sustainable Investing and Stewardship
Download the Infographic
Download the Infographic
83%
shareholder meetings
where we voted
16,024
of shareholder meetings where we voted against management at least once
59%
We identify long-term risks that have the potential to pose challenges to shareholder value, and we engage with companies on issues of substance — those that can affect business on many levels.
Engaging on Long-Term Risks
In the next ten years, climate change and biodiversity loss will be top 5 economic risks globally. We understand that these risks are interconnected. See how we engaged with companies on natural capital management issues to mitigate environmental risks.
Biodiversity Case Studies
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3
2023 Global Risks Report, World Economic Forum
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Total engagements include 86 direct engagements by NTAM and 3,859 engagements through outside engagement partner firm EOS at Federated Hermes.
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Download the 2022 Stewardship Report
Download the 2022 Stewardship Report
Northern Trust Asset Management engages purposefully and actively with the companies in our portfolios to drive value creation and meaningful change that translates to business results and performance.
Explore how we worked to encourage sustainable business practices in 2022.
Preserving a Duty of Care Through Stewardship
We identify long-term risks that have the potential to pose challenges to shareholder value, and we engage on issues of substance — those that can affect business on many levels. This active ownership approach applies to all companies we invest in — whether the investment strategy is actively managed or indexed.
Download Our 2022 Voting and Engagement Tables
of environmental shareholder resolutions supported based on
Voting Matters
Download Our 2022 Voting and Engagement Tables
Improving Water Consumption Disclosures
A Challenge to
Reduce Water Use
THE CHALLENGE
WHAT WE DID
THE OUTCOME
SSR Mining’s water use has increased significantly over the last few years, but it did not provide sufficient disclosures about its water consumption as required by the Sustainability Accounting Standards Board.
We voiced our concerns about disclosures to SSR Mining’s management. The company described its three pillars of water risk management: external disclosure, operational excellence and community stability. The company needs to use large quantities of water and recognized that water resources have become increasingly constrained.
The company has developed a water stewardship strategy and is providing disclosure in line with the disclosure standards set by CDP, an advocate group for environmental disclosures. We will continue to engage with SSR Mining to request more detailed disclosure.
The company verbally committed to consider setting water reduction targets. At the time of writing, we are waiting for the company to publish its 2022 ESG report. If, as we expect, it does not set out adequate targets, we intend to formally set our expectations and a timeframe for meeting them.
THE OUTCOME
We asked the company to set targets for reducing water consumption, with deadlines for achieving them.
WHAT WE DID
Energy provider Hawaiian Electric Industries’ water intensity, or amount of water used per unit of production, far exceeds the industry norm. Although it recognizes the risks posed by water scarcity, it does not have any reduction targets.
THE CHALLENGE
Improving Water Consumption Disclosures
A Challenge to
Reduce Water Use
A Challenge to
Reduce Water Use
Improving Water Consumption Disclosures
Explore How the Vector Score Works
Explore How the Vector Score Works
The Northern Trust ESG Vector Score, introduced in 2021, is a measurement that assesses publicly traded companies in the context of financially relevant ESG-related criteria that could impact their operating performance. The ESG Vector Score helps guide our stewardship process to bring more alignment, consistency, and precision to engagement.
TM
Enhancing Stewardship: Northern Trust ESG Vector Score
At Northern Trust Asset Management (“NTAM”), we define Sustainable Investing as encompassing all of NTAM’s investment strategies and accounts that utilize values-based and norms-based screens, best-in-class and ESG integration, or thematic investing that may focus on a specific ESG issue such as climate risk. NTAM’s Sustainable Investing includes portfolios designed by NTAM as well as those portfolios managed to client-defined methodologies or screens. As the data, analytical models and aforementioned portfolio construction tools available in the marketplace have evolved over time, so too has NTAM. NTAM’s Sustainable Investing encompasses strategies and client assets managed in accordance with client-specified responsible investing terms (historically referred to as Socially Responsible), as well as portfolios that leverage contemporary approaches and datasets, including ESG analytics and ESG thematic investing.
The information contained herein is intended for use with current or prospective clients of Northern Trust Investments, Inc. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Northern Trust and its affiliates may have positions in and may effect transactions in the markets, contracts and related investments different than described in this information. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Opinions and forecasts discussed are those of the author, do not necessarily reflect the views of Northern Trust and are subject to change without notice.
This report is provided for informational purposes only and is not intended to be, and should not be construed as, an offer, solicitation or recommendation with respect to any transaction and should not be treated as legal advice, investment advice or tax advice. Recipients should not rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. Indices and trademarks are the property of their respective owners. Information is subject to change based on market or other conditions.
All securities investing and trading activities risk the loss of capital. Each portfolio is subject to substantial risks including market risks, strategy risks, adviser risk and risks with respect to its investment in other structures. There can be no assurance that any portfolio investment objectives will be achieved, or that any investment will achieve profits or avoid incurring substantial losses. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Risk controls and models do not promise any level of performance or guarantee against loss of principal. Any discussion of risk management is intended to describe Northern Trust’s efforts to monitor and manage risk but does not imply low risk.
Environmental, Social and Governance (“ESG”) investing involves certain risks because the methodology of an underlying index selects and assigns weights to securities of issuers for nonfinancial reasons, a strategy may underperform the broader equity market or other strategies that do not utilize ESG criteria when selecting investments. The companies selected by an index provider as demonstrating ESG characteristics may not be the same companies selected by other index providers that use similar ESG screens. In addition, companies selected by an index provider may not exhibit positive or favorable ESG characteristics. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on a strategy’s ability to invest in accordance with its investment policies and/or achieve its investment objective.
Forward-looking statements and assumptions are Northern Trust’s current estimates or expectations of future events or future results based upon proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. may be the subject of or become associated with the services described herein.
Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
© 2023 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A.
ShareAction’s
2022
report
2
ABOUT SUSTAINABLE INVESTING
Assets under management as of March 31, 2023. For the Northern Trust Asset Management entities included in AUM total, please see disclosure at the end of this document.
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2022
Engagement
Priorities
Minimize environmental damage from animal protein production
Promote sustainable food and agriculture
Limit environmental damage, discourage deforestation and promote sound practices in water management
Preserve biodiversity
Encourage companies to align with the objectives of the Paris Agreement to achieve net-zero carbon emissions by 2050
Reduce climate risk
Foster compensation policies that motivate executives to achieve strong results for shareholders
and avoid excessive risks
Align pay for performance
Improve governance by ensuring an adequate mix of skills and backgrounds on corporate boards
Strengthen board diversity
Prevent the spread of violent content through stronger corporate policies and adequate governance at social media companies
Align conduct, culture and ethics with product safety and human rights
Foster a culture of inclusion in the
workforce and in executive ranks
Promote diversity,
equity and inclusion
Improve workplace safety for companies and their suppliers
Improve occupational health and safety
