Client Background
A leading global financial services holding company with over $3 trillion+ in assets under management operates across life insurance, health insurance, asset management, retirement savings, and reinsurance markets. With 15+ subsidiaries and 32,000+ employees worldwide, the company serves millions of customers across North America, Europe, and Asia through a broad and diversified portfolio of brands.
ESG and Sustainable Journey
Climate and Environmental Commitments
The firm is committed to achieving net-zero greenhouse gas emissions in its operations well before 2050, and by 2050 for its financed emissions. It regularly discloses emissions data—including Scope 3 emissions tied to investments—and is advancing transparency as data quality improves.
In 2024, the organization reported its first preliminary carbon footprint for its investment portfolio, focusing on listed fixed income, equities, and commercial real estate. Though unaudited and considered preliminary, this disclosure marked a key milestone in advancing ESG measurement and reporting.
“In December 2024, we selected Northern Trust and Equity Data Science (EDS) as our preferred enterprise technology partners from a competitive field—including Microsoft and SAP—to implement a high-quality, robust sustainability and carbon footprint solution.”
The Challenge
The firm’s internal business assessment surfaced critical ESG needs spanning compliance, data management, and decision enablement. Its 2025 objective: deploy a fully operational ESG platform to:
- Deliver efficient, audit-ready reporting at the entity and group levels
- Centralize ESG data ingestion and validation from vendors like Sustainalytics and CDP
- Equip front-office teams with dashboards to embed ESG insights into investment workflows.
The Solution
In partnership with Northern Trust, EDS transitioned the initiative from proof-of-concept to production-grade ESG platform—outperforming enterprise vendors such as Microsoft and SAP. The solution addressed four strategic pillars:
Business Need | Northern Trust / EDS Solution | |
|---|---|---|
Enabling
Enterprise-Wide
ESG Regulatory
Reporting |
• Standardize ESG metric reporting (e.g., SFDR PAI, PCAF-aligned climate metrics) across multiple consolidation levels
• Advance the firm’s European Asset Management strategy | • Delivered a single, operationally resilient calculation and reporting platform
• Supported multi-hierarchy, multi-currency needs to drive efficiency, minimize risk, and ensure reliable ESG calculations |
Centralizing ESG Data Management | • Consolidate and validate ESG data from multiple external providers
• Address fragmentation in ESG infrastructure | • Implemented a centralized ESG data management hub
• Future-proofed operations for scalable regulatory alignment |
Tracking and Monitoring ESG Progress | • Monitor progress toward net-zero targets and engagement outcomes
• Eliminate the cost and complexity of standalone engagement tools | • Introduced integrated tracking for carbon finance and engagement
• Reduced costs and improved transparency |
Supporting Front-Office ESG Integration | • Provide real-time ESG data to investment teams
• Reduce manual processing and improve data access at the portfolio level | • Delivered real-time dashboards and analytics
• Introduced portfolio-level carbon budgeting tools |
Driving Data Integrity, Auditability & Transparency
How EDS + Northern Trust Delivered Value
To ensure robust ESG data operations, EDS/Northern Trust tackled key challenges around traceability and governance:
Comprehensive Entity Mapping
Achieved 98%+ accuracy in mapping portfolios across equities, bonds, private debt, commercial real estate, sovereigns, and mortgages—through a scalable entity and parent entity identification framework.
Data Quality and Audit Support
Deployed dashboards and automated checks to proactively flag issues like variance, gaps, and missing data across providers including Sustainalytics, CDP, and FactSet.
Transparent PCAF Calculations
Enabled front-end management of PCAF formulas with complete visibility into inputs and version-controlled audit trails.
Override Governance Framework
Introduced a governance mechanism for ESG overrides, balancing user flexibility with full transparency and traceability of changes.
Accelerating ESG Capabilities: Key Benefits at a Glance
Category | Key Value Delivered |
|---|---|
Consolidated ESG Data | Integrated internal + external sources (Sustainalytics, FactSet, CDP, Bloomberg, SBTi) into one auditable platform |
Compliance & Efficiency Gains | Built-in SFDR/PAI reporting; 0.4 FTE efficiency gain |
Automated Data Controls | Reduced manual corrections; 0.2 FTE savings |
Real-Time Insights | Daily Snowflake data feeds power scenario modeling |
Early Readiness for 2025 | Enabled early testing via Snowflake connectivity |
Cost Savings | Eliminated tools like Esgaia (€10K/year saved); avoided costly IT builds (€70K–120K per data source) |
The Result
By partnering with EDS, the Company is achieving:
- Full regulatory alignment (PCAF, OSFI B-15, TCFD, SFDR), reducing compliance risk
- Streamlined ESG workflows via intuitive dashboards and integrations
- A scalable, production-grade platform that supports current and future ESG initiatives
- Transparent, auditable Scope 1, 2, and 3 disclosures
- Empowered investment teams with real-time ESG insights embedded in daily decision-making
Conclusion
With EDS, the organization taps into a high-impact ESG solution that delivers both compliance confidence and strategic clarity—positioning the firm as a forward-thinking leader in sustainable investing and operational excellence.