CHICAGO – FlexShares from Northern Trust Asset Management® Exchange Traded Funds today announced the launch of a new climate-focused Environmental, Social and Governance (ESG)* ETF with exposure to emerging markets: the FlexShares ESG & Climate Emerging Markets Core Index Fund (NYSE: FEEM ). This fund builds on FlexShares’ existing climate suite introduced in September 2021, which currently includes US large-cap equities, non-US developed market equities and two fixed income ETFs.
The FEEM fund will align with the broader suite strategy, which aims to help investors improve their portfolio’s overall ESG score and reduce carbon risk while maintaining core equity exposure. The full suite uses the Northern Trust ESG Vector Score** as well as a carbon risk rating with the aim of hedging ESG-related risks and capitalizing on sustainable opportunities.
The ESG Vector Score methodology, developed by Northern Trust Asset Management (NTAM), seeks to identify the ESG-related business issues most likely to impact a company’s financial performance and investment return. a wallet. This is combined with a particular focus on carbon risk. In partnership with Institutional Shareholder Services (ISS), each company is screened using a carbon risk scoring methodology to determine its current carbon emissions, efforts to reduce its carbon footprint and potential carbon risk exposure compared to other companies in its sector. . The fund aims for a reduction in overall carbon emissions and carbon reserves relative to its parent index, while also aiming for an overall improvement in its carbon risk rating.
“The addition of the FlexShares ESG & Climate Emerging Markets Core Index Fund will complement FlexShares’ existing climate funds, providing investors with a diverse set of core sustainability products they can use for exposure across the globe,” said said Crystal McClenthen, Head of Product Strategy, Funds and Managed Accounts at NTAM. “The combination of our ESG Vector Score and our Carbon Risk Rating creates a transparent and consistent approach to ESG measurement, which is particularly important when identifying opportunities in emerging markets.”
The FlexShares Climate Suite draws on NTAM’s more than 30 years of sustainable investing experience and over $130 billion in assets under management in sustainable strategies. With the addition of FEEM, FlexShares now offers seven ESG and/or climate-focused ETFs in its US range.
Darek Wojnar, Head of Funds and Managed Accounts for NTAM, added, “Our primary focus at FlexShares is to meet investors’ goals with innovative solutions, and increasingly that means supporting clients’ sustainability goals. . We believe our deep sustainability expertise and proprietary quantitative models will help investors gain basic exposure to global markets while benefiting from the transition to a low-carbon economy. »
* ESG investing is defined as the use of environmental, social and governance (ESG) criteria as a set of standards for a company’s operations that socially responsible investors use to screen potential investments.
**Northern Trust’s ESG Vector Score is designed to rank companies based on their management and exposure to material ESG metrics. The score was designed to align with the standards of the Sustainability Accounting Standards Board (SASB). The SASB standards were designed for investors and focus only on material financial issues depending on the industry in which the company operates. Based on this structure, the ESG vector score is a combination of individual ESG indicators, adjusted for industry affiliation. To go here to learn more.
About flexible shares
FlexShares exchange-traded funds are designed to pursue specific investment objectives through passive and active strategies. FlexShares offers differentiated ETF strategies that can improve and simplify the investment decision process for the long-term investor. Please visit our website or connect with us on our LinkedIn page.
About Northern Trust Asset Management
Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently achieve their long-term goals. With US$1.3 trillion in investor assets as of December 31, 2021, we understand investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take. – in all market environments and all investment strategies. That’s why we combine sound capital markets research, expert portfolio construction and comprehensive risk management to design innovative and effective solutions that deliver targeted investment results. As committed contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.
Northern Trust Asset Management is comprised of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, KK, NT Global Advisors, Inc., 50 South Capital Advisors, LLC , Belvedere Advisors LLC and the investment staff of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to businesses, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 US states and Washington, DC, and 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2021, Northern Trust had assets under custody/administration of US$16.2 trillion and assets under management of US$1.6 trillion. For more than 130 years, Northern Trust has distinguished itself as an industry leader for its exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 USA, incorporated with limited liability in the USA Please read our global and regulatory information.