Global investment manager Northern Trust Asset Management (NTAM) announced today the launch of the World Natural Capital Paris-Aligned Index strategy, aimed at providing institutional clients with an enhanced net zero solution integrating climate and natural capital considerations.
Julie Moret, Global Head of Sustainable Investing and Stewardship at NTAM, said:
“Investors are increasingly considering a wider spectrum of interconnected environmentalEnvironmental criteria consider how a company performs as a steward of nature. considerations when looking to reflect the objectives of a transition to a climate-resilient economy. This strategy offers a compelling solution for them.”
The company said the new strategy aims to closely match the risk and return characteristics of the MSCI World Natural Capital Paris-Aligned Equity Select Index. According to MSCI, the index is designed to reduce exposure to indicators associated with adverse impact on natural resources, while increasing exposure to companies associated with positive contribution to the environment through their products or services,or through their management of their natural capital-related risks.
The index also aims to meet the EU Paris-Aligned Benchmark (PAB) standards, which include criteria of a minimum reduction in greenhouse gas (GHG) emissions intensity of at least 50% compared to the market index, with annual GHG emissions intensity reductions of at least 7%, among others.
Sebastian Lieblich, Head of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and Climate Indexes at MSCI said:
“The range of MSCI climate indexes is specifically designed to help investors develop portfolios that meet their net zero commitments, integrate climate considerations and fulfil their investment objectives. We are pleased to support this launch with an index seeking efficient exposure to broad global equity markets with risk-controlled tilts towards positive climate change and natural capital-related objectives.”
Marie Dzanis, Head of NTAM in EMEA, added:
“As the world is moving towards net-zero targets, we are seeing an increased interest in the solutions supporting those commitments. With this strategy, based on more than 30 years of experience managing socially responsible strategies, we’re looking to efficiently integrate climate and natural capital considerations.”
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