Monday, March 5, 2018

Northern Trust Promotes Socially Responsible Investment


Based in Chicago, banking executive Colin Robertson serves as the managing director of fixed income for Northern Trust. In the Chicago office, Colin Robertson oversees some 68 employees. 

Out of respect for the global community, Northern Trust encourages socially responsible investing (SRI). For over 25 years, the firm has emphasized environmental, social, and governance (ESG) factors when it creates stock portfolios. 

It pursues these goals by vetting companies for their adherence to ESG principles, following strategies that produce socially beneficial returns, and selecting from indexes such as the Domini 400. Northern Trust also supports shareholder voting to change corporate priorities. 

The bank screens out investments in a wide range of categories, from tobacco and pornography to discrimination and arms-dealing. It also turns down industry sectors such as gambling, firearms, and nuclear power. 

Instead, Northern Trust looks for choices that benefit society, such as clean energy, human rights, product safety, and diversity on boards of directors. Desirable companies tend to be innovative, quality-oriented, and maintain good community and employee relations. 

Northern Trust also chooses companies with some good environmental practices that may be otherwise screened out, such as extractive industries. This best-of-sector approach encourages businesses to upgrade their environmental and governance performance.