National Australia Bank’s Asset Servicing division will offer a Carbon Report product to allow custody clients to assess the carbon intensity of their investments.
NAB Asset Servicing has partnered with Sustainalytics as the data provider to offering the monitoring tool, which can be used to gauge CO2 intensity at a fund or an individual portfolio level, including both sector and stock selection carbon intensity attribution, NAB Asset Servicing said.
“Through our service, Asset Owners can access company level carbon metrics supporting easy identification of significant carbon contributors within individual portfolios,” said John Comito, executive general manager of Asset Servicing. “Furthermore, the Carbon Report can be enhanced with Asset Servicing’s investment trust look-through capabilities. The newly launched product assists clients with post trade analysis and monitoring of investment carbon intensity across portfolios and investment managers. It supports the reporting of a fund’s carbon footprint (eg. Montreal pledge) and provides clients additional opportunities to further disclose fund carbon exposures”.
NAB Asset Servicing is the second-largest provider of custody services in Australia, with AU$ 564 billion in assets under custody, according to the Australian Custodial Services Association.
“With a greater number of companies now disclosing carbon emissions data, NAB Asset Servicing sees this as an important step in helping clients with carbon monitoring and is an important extension to our existing ESG reporting,” Comito said. “With investors and members also becoming more active in seeking additional information, the carbon report supports clients with the implementation of carbon disclosure/monitoring strategies”.
For their part, Sustainalytics sees the partnership with NAB Asset Services as providing asset owners with a means to take a strong first step in understanding their climate change risks, said Catalina Secreteanu, head of Australia for Sustainalytics.
“From our perspective, the interesting component of working with a custodian is that they have an integrated process of providing asset owners with research insights anyway, so their ability to integrate an ESG dimension there makes sense and makes things easier for asset owners that want a high level overview of how their managers are integrating carbon risk.”
Rachel Alembakis is the publisher of The Sustainability Report a weekly digital publication that provides reporting into Environmental, Social and Governance (ESG) issues related to companies listed on the Australian Stock Exchange.