The Northern Trust ESG Vector Score is a measurement that assesses publicly traded companies in the context of financially relevant environmental, social and governance (ESG) related criteria that could impact their operating performance.
As the demand for environmental, social and governance (ESG) investing has accelerated, so too has the number of data providers — each with varying information, reporting components and levels of transparency. This has created significant confusion and subjectivity for investors to assess the magnitude and direction of individual companies’ ESG-related issues.
Aligned with Northern Trust Asset Management’s philosophy that investors should be compensated for the risks they take, the methodology leverages the firm’s extensive quantitative and sustainable investing experience — capturing both the magnitude and direction of potential ESG-related risks.
