Northern Trust

Overall approach

4/16
- Overarching commitment on deforestation
  
  4/16
  
  Deforestation commitment
  
  Understanding of the risks
  
  4/16
  
  "Companies should understand and manage their contribution to deforestation. Responsible for up to 20% of global carbon emissions, deforestation is becoming a vital public policy issue. Companies should be ready for future legislation and ensure the sustainability of their supply chains".
  
  Open source document
Commodity score

10/64
- Beef & Leather
  
  10/64
  - Commitment Strength
    
    10/42
    - Commodity-specific financing policy
      
      9.6/9.6
      - Commitment details
        Yes
        
        8/8
        
        Commitment details
        
        Yes
        
        8/8
        
        Type of policy: Sustainable/Responsible
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all operations and financing
        All
        
        0.4/0.4
        
        Policy applies to all operations and financing
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all deals
        All
        
        0.4/0.4
        
        Policy applies to all deals
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all companies
        All
        
        0.4/0.4
        
        Policy applies to all companies
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all stages of the supply chain
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        Policy applies to all stages of the supply chain
        
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
    - Companies must be legally operated
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must protect priority forests or globally important landscapes
      
      0/9.6
      - Commitment details
        No
        
        0/8
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Assurance mechanism to ensure compliance
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must have a grievance mechanism
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Commitments must be timebound
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
  - Social Considerations
    
    0/22
    - Company must ensure Free, Prior and Informed Consent
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must respect labour rights
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must address gender equality issues
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must encourage the inclusion of small-scale farmers
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
- Palm oil
  
  10/64
  - Commitment Strength
    
    10/42
    - Commodity-specific financing policy
      
      9.6/9.6
      - Commitment details
        Yes
        
        8/8
        
        Commitment details
        
        Yes
        
        8/8
        
        Type of policy: Sustainable/Responsible
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all operations and financing
        All
        
        0.4/0.4
        
        Policy applies to all operations and financing
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all deals
        All
        
        0.4/0.4
        
        Policy applies to all deals
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all companies
        All
        
        0.4/0.4
        
        Policy applies to all companies
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all stages of the supply chain
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        Policy applies to all stages of the supply chain
        
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
    - Companies must be legally operated
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must protect priority forests or globally important landscapes
      
      0/9.6
      - Commitment details
        No
        
        0/8
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Assurance mechanism to ensure compliance
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must have a grievance mechanism
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Commitments must be timebound
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
  - Social Considerations
    
    0/22
    - Company must ensure Free, Prior and Informed Consent
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must respect labour rights
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must address gender equality issues
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must encourage the inclusion of small-scale farmers
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
- Soy
  
  10/64
  - Commitment Strength
    
    10/42
    - Commodity-specific financing policy
      
      9.6/9.6
      - Commitment details
        Yes
        
        8/8
        
        Commitment details
        
        Yes
        
        8/8
        
        Type of policy: Sustainable/Responsible
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all operations and financing
        All
        
        0.4/0.4
        
        Policy applies to all operations and financing
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all deals
        All
        
        0.4/0.4
        
        Policy applies to all deals
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all companies
        All
        
        0.4/0.4
        
        Policy applies to all companies
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all stages of the supply chain
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        Policy applies to all stages of the supply chain
        
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
    - Companies must be legally operated
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must protect priority forests or globally important landscapes
      
      0/9.6
      - Commitment details
        No
        
        0/8
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Assurance mechanism to ensure compliance
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must have a grievance mechanism
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Commitments must be timebound
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
  - Social Considerations
    
    0/22
    - Company must ensure Free, Prior and Informed Consent
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must respect labour rights
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must address gender equality issues
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must encourage the inclusion of small-scale farmers
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
- Timber, Pulp & Paper
  
  10/64
  - Commitment Strength
    
    10/42
    - Commodity-specific financing policy
      
      9.6/9.6
      - Commitment details
        Yes
        
        8/8
        
        Commitment details
        
        Yes
        
        8/8
        
        Type of policy: Sustainable/Responsible
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all operations and financing
        All
        
        0.4/0.4
        
        Policy applies to all operations and financing
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all deals
        All
        
        0.4/0.4
        
        Policy applies to all deals
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all companies
        All
        
        0.4/0.4
        
        Policy applies to all companies
        
        All
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
      - Policy applies to all stages of the supply chain
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        Policy applies to all stages of the supply chain
        
        Producers; Processors; Traders; Manufacturers; Retailers
        
        0.4/0.4
        
        "Companies should understand and manage their contribution to deforestation."
        
        Open source document
    - Companies must be legally operated
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must protect priority forests or globally important landscapes
      
      0/9.6
      - Commitment details
        No
        
        0/8
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Assurance mechanism to ensure compliance
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must have a grievance mechanism
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Commitments must be timebound
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
  - Social Considerations
    
    0/22
    - Company must ensure Free, Prior and Informed Consent
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must respect labour rights
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Company must address gender equality issues
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
    - Companies must encourage the inclusion of small-scale farmers
      
      0/5.6
      - Commitment details
        No
        
        0/4
      - Policy applies to all operations and financing
        No
        
        0/0.4
      - Policy applies to all deals
        No
        
        0/0.4
      - Policy applies to all companies
        No
        
        0/0.4
      - Policy applies to all stages of the supply chain
        No
        
        0/0.4
Reporting & Implementation

10/20
- Policy is reviewed and updated
  
  0/5
- Companies must disclose subsidiaries in commodity supply chains
  
  0/5
- Monitoring and non-compliance process
  
  5/5
  
  Monitoring compliance
  
  Yes - Screening and monitoring process
  
  5/5
  
  "Hermes Equity Ownership Services ('Hermes EOS') have been appointed to act as agent of each of the Funds to carry out" engagement efforts. "Engagements may relate to longer-term strategic, environmental, social or governance issues, which may not have immediate stock-specific impacts...Hermes EOS will escalate its engagement according to the nature and severity of the concerns...On a quarterly basis Hermes EOS provides a report on the engagement activity undertaken on each Fund’s behalf. On an annual basis it produces a detailed evaluation of the progress and impact of engagements on companies in each Fund’s portfolio."
  
  Open source document
- Reporting on implementation of the policy
  
  5/5
  
  Reporting
  
  Yes - Annually
  
  5/5
  
  Quarterly Engagement Reports
  
  "Hermes Equity Ownership Services ('Hermes EOS') have been appointed to act as agent of each of the Funds to carry out public policy, best practice and corporate governance engagement...On a quarterly basis Hermes EOS provides a report on the engagement activity undertaken on each Fund’s behalf. On an annual basis it produces a detailed evaluation of the progress and impact of engagements on companies in each Fund’s portfolio." In Q3 2018, Northern Trust reported that engaged with 241 companies over the last quarter. Environmental 31.1%; Social and ethical 21.0%; Governance 27.6%".
  
  Open source document
Commitment strength

10/42

Avg. score
Social considerations

0/22

Avg. score

Profile

Northern Trust are a financial services provider headquartered in the US that serves private and institutional clients. Their services include investment management, asset and fund administration, fiduciary and banking solutions. As of 2017, their total assets amount to more than 1.1 trillion USD. Northern Trust are among the top 50 lenders to Forest 500 companies, with loans amounting to more than 4 billion USD across a broad range of forest risk sectors. They are also among the top 20 shareholders for Forest 500 companies, with more than 27 billion USD worth of shares.

United States

Financial institution type

Asset management, Bank

How we assess the Forest 500

Investors and lenders need to adopt and implement strong deforestation policies that ensure their investments are not funding the destruction of forests.

All assessments use policies published on financial institution websites, some links may have changed or been removed since the time of assessment.

Full finance sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.

northern_trust_corp.jpg

Total

Score:

Total score:

23%

Profile

How we assess the Forest 500

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Northern Trust

Total

Score:

Total score: 23%

Profile

How we assess the Forest 500

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Total score:

23%