NORTHAMPTON, MA / ACCESSWIRE / December 27, 2023 / Northern Trust
Originally published in Northern Trust's 2022 Sustainability Report
Since our founding in 1889, Northern Trust has actively advanced a culture of caring and a commitment to invest responsibly in the communities we serve worldwide.
Global Philanthropic Strategy
Since 2020, we have worked toward a philanthropic strategy that focuses our contributions on four key areas of fundamental impact proven to improve financial futures: educational excellence, food security, accessible healthcare and affordable housing.
Our goal is to support those who have been marginalized with more opportunities to achieve long-term financial success. The support comes in a variety of ways, from providing shelter for children in India to ensuring internet access and laptops for low-income students in London to, through the Northern Trust Foundation, expanding access to resources that address mental and physical health needs in Chicago's South and West sides.
In 2022, Northern Trust donated more than $19 million, bringing our total giving over the past decade to nearly $170 million globally. Please visit the 2022 Philanthropic Impact Report to learn more about our philanthropic efforts.
COMMUNITY ENGAGEMENT
Community engagement opportunities and paid time off for volunteerism enhance our communities, put our values into action and help make us an employer of choice.
Employee volunteerism options are a strong priority for college graduates considering future employers, and Northern Trust employees have volunteered more than 1 million hours of their time to charities over the past decade. Nonprofit and civic board involvement is integral to talent management, as it provides employees with a means of improving the world around them, leadership experience, skill development and networking opportunities beyond the scope of their roles.
To enhance environmental efforts in our communities, our Asset Servicing business partnered with the Sustainability Network and our philanthropy team to curate "Earth Quarter 2022."
- 500 employees signed the carbon pledge and committed to making small changes in their daily routine to decrease their carbon emissions.
- 388 volunteer hours were logged by employees worldwide
- Two employees who logged the most hours and will split the $10,000 donation to their selected charities.
Community Development & Investment
At Northern Trust, we believe creating long-term sustainable change in communities requires direct investment of capital using investments that prioritize social impacts rather than the maximization of financial return. Our Community Reinvestment Act (CRA) designation as a wholesale bank allows us to concentrate efforts and resources on investments that provide access to capital, helping to create and expand community wealth. The Corporate Governance Committee of the board of directors receives an annual CRA and fair lending report and approves our policies in these areas. Northern Trust has maintained an Outstanding CRA rating for 27 consecutive years, and as of Dec. 31, 2022, our community investments portfolio exceeded $3.9 billion and serves the following priorities:
AFFORDABLE HOUSING ($3.5 BILLION PORTFOLIO)
OBJECTIVE: Support the creation and retention of affordable home rentals and homeownership in partnership with mission-driven lenders and developers.
Catholic Charities USA
Since 1910, Catholic Charities USA has been a voice for the vulnerable, and an advocate for at-risk communities across the United States. With an investment of $10 million, Northern Trust was able to help with the launch of their Affordable Housing Gap Loan Pilot Program. This program utilizes low-interest loans to provide gap financing to support the construction of affordable housing properties built by Catholic Charities affiliates. As one of the nation's leading affordable housing providers, Catholic Charities is an impactful innovator in their service to under-resourced communities.
EDUCATION AND SOCIAL SERVICES ($201.3 MILLION PORTFOLIO)
OBJECTIVE: Provide long-term capital and equity for the development of community and educational facilities and programs such as charter schools, health clinics and daycare centers.
Public Education and Business Coalition
As an early adopter of Social Impact Bonds/Pay-for-Success programs, Northern Trust was asked to participate in a transaction that supports the training and retention of approximately 350 new teachers in the city of Denver and its surrounding communities, using the Public Education and Business Coalition (PEBC) Teacher Residency Program. As the lead investor, Northern Trust is providing up to $1.2 million over a five-year period, along with the Gates Family Foundation, Denver Foundation and the Colorado Department of Education. PEBC has trained new teachers for nearly 30 years, and is the largest residency and alternative licensure pathway. The financing will provide for the expansion of the program, and allow school districts the ability to pay for a portion of the program through success fees based upon teacher retention.
WEALTH ACCUMULATION ($76.6 MILLION PORTFOLIO)
OBJECTIVE: Invest in Community Development Financial Institutions (CDFIs) and community credit unions that provide capital to meet the needs of the unbanked, underbanked and underserved members of our communities.
Latino Community Credit Union
Latino Community Credit Union (LCCU) is a Community Development Financial Institution with the mission of supporting local communities through ethical financial tools, and the training to foster economic prosperity for generations to come. In addition to having their Minority Depository Institution (MDI) certification, LCCU is bilingual and federally insured so as to directly engage with and support low-income communities. Northern Trust committed a $5 million investment to provide capital support and education to both underserved Latinos and immigrants in North Carolina and throughout the Southeast. LCCU is one of the fastest growing credit unions, and it strives to create economic opportunities with fair and affordable financial products and accessible education.
JOB CREATION ($173.3 MILLION PORTFOLIO)
OBJECTIVE: Support mission-driven micro-loan origination programs and the expansion of businesses and job creation.
IndieDwell
With a Northern Trust equity investment of up to $5 million in New Market Tax Credits, IndieDwell in Brawley, is creating a new facility that will be used to manufacture affordable, sustainable modular housing to meet unmet housing needs in the southwest United States, with a commitment to carbon neutrality. While the construction of affordable housing is important, the creation of over 190 full-time jobs that provide easy entry pathways for those with employment barriers is the real differentiator of the IndieDwell social enterprise model. The jobs will provide a living wage, essential training in construction trades, comprehensive benefits, as well as profit sharing and retirement plan options. In addition, after three years of working within the new facility, the full-time employees may participate in a designated employee ownership program and be eligible for dividend distributions.
Read the full report here
View additional multimedia and more ESG storytelling from Northern Trust on 3blmedia.com.
Contact Info:
Spokesperson: Northern Trust
Website: https://www.3blmedia.com/profiles/northern-trust
Email: info@3blmedia.com
SOURCE: Northern Trust
View the original press release on accesswire.com
