Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Ethical Business Practices
• Global Workforce
• Community Affairs
• Environmental Sustainability
• Responsible Investing

Environmental Achievements

• Achieved 3.75% per FTE reduction of GHG emissions.
• Developed key relationships with NGOs and peer groups.
• Launched “Think Privacy” awareness campaign and new internal Website.
• Reduced paper consumption by 25%.

Social Achievements

• Increased U.S. population of ethnic minorities in Senior Management roles by 27%.
• Increased global population of women in Senior Management roles by 15%.
• Implemented a tool enabling partners to request a career discussion with their manager and developed an automated mechanism to track manager responses.
• Completed 45,000 hours of manager training through proprietary “Driving the Employee Journey” program.
• Deployed Career Development Center featuring over 16,000 site visits.
• Researched partner organizations to expand the global reach of Northern Trust’s philanthropy.

Governance Achievements

• Discussed ESG topics monthly with CEO.
• Developed RI client survey questions and metrics for tracking demand via RFPs.
• Hosted RI educational forum and featured RI capabilities at all staff meetings.
• Established new investment vehicles supporting RI demand and developed processes for developing and evaluating solutions within the external manager platform.
• Completed CSR Vendor Review for top 50 vendors (52% of total spend).

Climate Goals & Targets

Environmental Challenges

• Expanding international business, acquisitions, and a stable workforce leading to increased indirect emissions related to electricity usage (Scope 2) and business travel (Scope 3).
• Increased paper cup consumption.

Mitigation Strategies

• Rollout of multi-functional devices (MFD) to all regions.
• Print Smart campaign to reduce paper usage by 25%.
• Promoting the use of videoconference when possible.
• Global Procurement Policy to consider vendors’ sustainable practices.
• Promoting subsidized reusable cups.

Supply Chain Management

Supplier Audits: CSR analysis through a survey of top 50 suppliers (80% response rate).

Responsible Procurement

• Code of Vendor Conduct
• Supplier Code of Conduct
• Anti-Bribery Vendor Questionnaire
• Vendor Management program

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Floods
• Other weather-related events

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Deloitte and Touche LLP

Awards & Recognition

• One of the World’s Most Admired Companies (Fortune)
• Top 50 Companies for Executive Women (NAFE)
• Global Securities Lender of the Year
• Many other awards listed on page 7

Environmental Metrics

ESG Focus Areas

• Governance
• Citizenship
• Operations
• Employees
• Shared Value
• Sustainable Products and Services
• Diversity and Inclusion
• Community Engagement
• Environmental Sustainability

Environmental Achievements

• Reduced carbon emissions by 9.65% by the end of 2016 (exceeding the initial 3% per FTE reduction goal), set a new goal to reduce emissions by 25% from the 2015 baseline by the end of 2020.
• Introduced electric cars to India offices, resulting in a 7% savings in carbon emissions compared to 2015.

Social Achievements

• Contributed over $19 million USD globally to philanthropic organizations.
• Signed the UK’s Women in Finance Charter.
• Launched a mental health education program in London.
• Provided help to Puerto Rico after Hurricane Maria.

Governance Achievements

• 100% of employees completed Code of Business Conduct and Ethics certification and Standards of Conduct Policy Training (including anti-corruption information).
• Annual anti-corruption training for client-facing personnel and relevant professionals.
• Expanded anti-corruption training in EMEA and APAC regions.

Climate Goals & Targets

Environmental Challenges

• Reducing carbon emissions from data centers and facilities.
• Managing environmental impacts from the global supply chain.

Mitigation Strategies

• Consolidating and downsizing servers through virtualization.
• Optimizing power and resource utilization by life-cycling older equipment.
• Using teleconferencing to reduce business travel.
• Implementing energy-efficient building strategies and practices (LEED).
• Integrating environmental considerations into company-wide decision-making processes.
• Setting and tracking key performance indicators aligned with the UN Sustainable Development Goals.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Global Procurement Policy
• Due diligence (anti-bribery questionnaires)
• Compliance with laws of country of manufacture, sale, and distribution
• Supplier management program (risk assessment, performance monitoring, continuous improvement)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: LEED Platinum (2), Gold (7), Silver (1), General (1)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ESG equity funds

Awards & Recognition

• Best Banks in America (Forbes, 2017)
• Best Private Bank for Family Offices (Global) (Financial Times Group, 2017)
• One of the “World’s Most Admired Companies” (Fortune Magazine, 2017 – 11th Consecutive Year)
• 100 Best Corporate Citizens (Corporate Responsibility Magazine, 2017)
• Best Places to Work for LGBT Equality (Corporate Equality Index, 2017 – 8th Consecutive Year)
• Top 50 Company for Executive Women (National Association for Female Executives, 2017 – 7th Consecutive Year)
• Top 50 Companies for Latinas to Work For in the United States (Latina Style Magazine, 2017)
• 100 Best Companies for Women in India (Working Mother & AVTAR, 2017)
• FTSE4Good Global Index 2017 (11th Consecutive Year)
• Dow Jones Sustainability North America Index 2017 (7th Consecutive Year)
• A- rating from CDP for greenhouse gas emissions disclosures and climate action

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Not disclosed

Social Achievements

• 96% of employees received regular performance and career development reviews.

Governance Achievements

• All employees received anti-bribery and corruption training.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Committed to achieving net-zero carbon emissions by 2050.

Social Achievements

• Named Best Private Bank by the Financial Times Group for the 11th time in the past 13 years.
• Focus on work/life balance, career advancement and the continued development of a diverse and inclusive workplace.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Prolonged pandemic conditions caused employee turnover.
• Heightened competition for talent.
• Low interest rates put additional pressure on the yield of the securities portfolio.

Mitigation Strategies

• Holistic reassessment of the employee experience, focusing on work/life balance, career advancement, and diversity and inclusion.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Northern Trust ESG Vector Score™

Awards & Recognition

• Best Private Bank by the Financial Times Group

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Expanded Capital Market Assumptions outlook from five to 10 years, incorporating sustainable green transition as a key theme.
• NTAM net zero targets approved by NZAMI.

Social Achievements

• Increased climate-focused direct engagements by 86% compared to the previous year (to over 90).

Governance Achievements

• Strengthened governance structure with oversight from NTC’s Board and NTAM’s Asset Management Risk Committee (AMRC) and Sustainable Investing Council (SIC).

Climate Goals & Targets

Environmental Challenges

• Data quality and company disclosure variations.
• Uncertainty in physical risk modeling (including second-order impacts and tail risks).
• Cleantech "unknown unknowns" regarding emerging technologies.
• Evolving climate-related regulations and reporting requirements.

Mitigation Strategies

• Leveraging multiple data providers and using proxies to fill data gaps.
• Engaging with investee companies to improve data disclosure.
• Implementing the Regulatory Change Framework (RCF) to monitor and manage regulatory changes.
• Continuous evaluation and adoption of enhanced data and methodologies for climate scenario analysis.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, etc.)
• Chronic impacts (rising temperatures, sea levels)

Transition Risks

• Increased regulations and reporting requirements
• Legal exposure
• Reduction in investment value
• Costs associated with low-carbon technology
• Market shifts due to decarbonization

Opportunities

• Increased demand for climate-focused investment solutions
• Increased demand for net-zero focused investment solutions

Reporting Standards

Frameworks Used: TCFD, SASB

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR