Corporate Social Responsibility
ACHIEVE GREATER NORTHERN TRUST 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT
Corporate Social Responsibility at Northern Trust 1 CORPORATE SOCIAL RESPONSIBILITY AT NORTHERN TRUST
“At Northern Trust, we believe organizations with a demonstrated commitment to corporate social responsibility create greater value for shareholders and key stakeholders.”
FREDERICK H. WADDELL Chairman and Chief Executive Officer
Corporate Social Responsibility at Northern Trust 2 STRATEGIC CORPORATE SOCIAL RESPONSIBILITY PILLARS
CORE ASPECTS PARTNERS Focus on Recruit, retain governance, and develop citizenship and diverse talent operations
SHARED VALUE SUSTAINABLE Generate PRODUCT AND economic value SERVICES in a way that also Build market produces value strength through for society innovation
Corporate Social Responsibility at Northern Trust 3 TABLE OF CONTENTS
LETTER FROM CONNIE L. LINDSEY AND PARTNERS (EMPLOYEES)...... 14 FREDERICK H. WADDELL...... 5 Talent Management and Education...... 14 INDEPENDENT ACCOUNTANTS’ REVIEW REPORT...... 6 Diversity...... 15 BASIS FOR REPORT...... 7 Global Diversity and Inclusion Strategy and Governance...... 16 Report Content ...... 7 Composition of Northern Trust's Global Workforce...... 17 Period, Scope and Boundary...... 7 Workforce by Ethnicity and Gender...... 17 Stakeholder Engagement...... 7 Human Rights and Workforce Principles...... 17 Reporting Framework...... 7 SHARED VALUE...... 18 Material Aspects...... 7 Corporate Alignment ...... 19 External Assurance...... 7 SUSTAINABLE PRODUCTS AND SERVICES...... 21 Materiality Matrix...... 8 SELECTED MEMBERSHIPS...... 23 HONORS...... 9 The United Nations Environmental Programme CORE ASPECTS...... 10 - Finance Initiative (UNEP FI)...... 23 Governance ...... 10 The Boston College Center for Corporate Citizenship (BCCCC)...... 23 Ethics...... 10 United Nations Principles for Responsible Investing (UNPRI)...... 23 OPERATIONS...... 11 Banking Environment Initiative (BEI) - Cambridge University Corporate Services Group and Environmental Practices ...... 11 Institute for Sustainability Leadership...... 23 Non-Governmental Organizations and Advocacy Groups ...... 11 Enterprise Enablement ...... 12 Partners Think Green...... 12 Local Communities...... 12 Procurement...... 12 Supplier Diversity...... 13
Corporate Social Responsibility at Northern Trust 4 LETTER FROM We are pleased to present our seventh Corporate Social Responsibility (CSR) Report prepared CONNIE L. LINDSEY AND using Global Reporting Initiative (GRI) standards. At Northern Trust, we believe organizations with a demonstrated commitment to corporate social responsibility create greater value for shareholders FREDERICK H. WADDELL and key stakeholders. To achieve this, we have aligned our CSR efforts with our guiding principles of service, expertise and integrity. Through these principles, we are dedicated to meeting the evolving needs of our clients, shareholders and other key stakeholders through innovative and ethical business practices. Above all, we aim to serve as a responsible corporate citizen in the diverse communities and environments in which we live and work. In 2016, we conducted our biannual refresh of our material aspects as part of our ongoing practice of stakeholder engagement. This process helped inform the pillars of our CSR strategy: Core Aspects, Partners, Shared Value and Sustainable Products. These pillars are the foundation that will support the growth of our business for years to come, and they will allow us to continue to “Achieve Greater” on behalf of all of our stakeholders. Northern Trust’s more than 17,000 employees serving our clients around the globe bring enthusiasm and expertise to improving our society and environment with integrity on a daily basis. Highlights of our 2016 work include: • Named one of the World’s Most Ethical Companies for the third consecutive year • Maintained a Community Reinvestment Act (CRA) rating of "Outstanding" • Received an award of "Tier 1 status" by the Financial Reporting Council • Sponsored our first Hiring our Heroes Corporate Fellowship Program We are proud of our work and the impact it has on our employees, clients, shareholders and other key stakeholders. We thank them for their contributions to our success in 2016 and look forward to our future collective achievements. Thank you for your interest in our CSR journey.
Connie L. Lindsey Frederick H. Waddell Executive Vice President, Chairman and Chief Executive Officer Head of Corporate Social Responsibility and Global Diversity & Inclusion
Corporate Social Responsibility at Northern Trust 5 KPMG LLP Aon Center Suite 5500 200 E. Randolph Street Chicago, IL 60601-6436 INDEPENDENT INDEPENDENT ACCOUNTANTS’ REPORT KPMG LLP Aon Center, Suite 5500 ACCOUNTANTS’ 200 E. RandolphKPMG LLP Street Chicago, ILAon 60601-6436 Center REVIEW REPORT The Board of Directors and Management Suite 5500 200 E. Randolph Street Northern Trust Corporation: Chicago, IL 60601-6436 Independent Accountants’ Report We have reviewed management of Northern Trust Corporation’s assertion that the accompanying 2016 Corporate Social Responsibility Report of Northern Trust Corporation (the Company) for the year ended The Board of Directors December 31, 2016 (the 2016 Corporate Social Responsibility Report) includes the required elements Northern Trust Corporation: in accordance with the Global Reporting Initiative Standards: Core option. The Company’s management We have reviewed management’s assertionis that responsible the accompanying for its assertion. 2015 Corporate Our responsibility Social Responsibility is to express a conclusion on management’s assertionIndependent Accountants’ Report Annual Report of Northern Trust Corporation (the Company) for the year ended December 31, 2015 (the Corporate Social Responsibility Report) includesbased the on required our review. elements of the Global Reporting Initiative G4 Sustainability Reporting Framework under its ‘in accordance’ Core option. Our review was conducted in accordance with attestation standardsThe Board established of Directors by the American Institute of Our review was conducted in accordance withCertified attestation Public standards Accountants. established Those by thestandards American require Institute that of Northern we plan Trustand performCorporation the :review to obtain limited Certified Public Accountants. A review consistsassurance principally about of applying whether analytical any material procedures modifications and making should be made to management’s assertion in order for it inquiries of persons responsible for the corporate social responsibility information. A review is substantially lessWe have reviewed management’s assertion that the accompanying 2015 Corporate Social Responsibility in scope than an examination, the objective toof bewhich fairly is thestated. expression A review of isan substantially opinion on the lessCorporate in scope Social thanAnnual an examination, Report of Northern the objective Trust Corporationof which is to(the obtainCompany) for the year ended December 31, 2015 (the Corporate Social Responsibility Report) includes the required elements of the Global Reporting Initiative G4 Responsibility Report. Accordingly, we do notreasonable express such assurance an opinion. about whether management’s assertion is fairly stated, in all material respects, in order Sustainability Reporting Framework under its ‘in accordance’ Core option. to express an opinion. Accordingly, we do not express such an opinion. We believe that our review provides a The preparation of the Corporate Social Responsibility Report requires management to interpret the criteria, make determinations as to the relevancy of reasonableinformation to basis be included, for our conclusion.and make estimates and assumptionsOur review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. A review consists principally of applying analytical procedures and making that affect reported information. The selection of different but acceptable measurement techniques can result in inquiries of persons responsible for the corporate social responsibility information. A review is substantially less materially different but acceptable measurements.The preparation Different entities of the may Corporate make different Social Responsibilitybut acceptable Report requires management to interpret the interpretations and determinations. The Corporatecriteria, Social make Responsibility determinations Report as to includes the relevancy information of information regardingin scope to be than included, an examination, and make the estimates objective ofand which is the expression of an opinion on the Corporate Social Responsibility Report. Accordingly, we do not express such an opinion. the Company’s corporate sustainability initiativesassumption and targets, that theaffect estimated reported future information. impact of events The selection that have of different but acceptable measurement occurred or are expected to occur, commitments, and uncertainties. Actual results in the future may differ The preparation of the Corporate Social Responsibility Report requires management to interpret the criteria, materially from management’s present assessmenttechniques of this can information result in materiallybecause events different and circumstancesmeasurements. Different entities may make different but make determinations as to the relevancy of information to be included, and make estimates and assumptions frequently do not occur as expected. acceptable interpretations and determinations. that affect reported information. The selection of different but acceptable measurement techniques can result in materially different but acceptable measurements. Different entities may make different but acceptable Based on our review, nothing came to our attentionBased on that our caused review, us we to believeare not that aware management’s of any material assertion modifications that should be made to interpretations and determinations. The Corporate Social Responsibility Report includes information regarding referred to above is not fairly stated, in all material respects, based on the Global Reporting Initiative G4 management of Northern Trust Corporation’s assertion in orderthe Company’s for it to be corporate fairly stated. sustainability initiatives and targets, the estimated future impact of events that have Sustainability Reporting Framework. occurred or are expected to occur, commitments, and uncertainties. Actual results in the future may differ materially from management’s present assessment of this information because events and circumstances frequently do not occur as expected.
Chicago, Illinois Cambridge, Massachusetts Based on our review, nothing came to our attention that caused us to believe that management’s assertion January 31, 2017 referred to above is not fairly stated, in all material respects, based on the Global Reporting Initiative G4 September 27, 2017 Sustainability Reporting Framework.
KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Chicago, Illinois January 31, 2017
Corporate Social Responsibility at Northern Trust 6
KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. BASIS FOR REPORT
REPORT CONTENT STAKEHOLDER ENGAGEMENT MATERIAL ASPECTS This report has been created in response to We actively engage in dialogue with our The report and its index provide details on interactions with key stakeholder groups. Each stakeholders – clients, partners (employees), the material aspects and topics that reflect stakeholder group is expected to use this report shareholders, communities, regulators, suppliers economic, environmental and social impacts to gauge our progress on responding to the and peers. These stakeholder groups are relevant to our business. Our focus during socio-economic issues that may have been raised determined based on our business strategy of 2016 was conducting a new materiality over the past year. serving corporations, institutions and affluent assessment. During 2017, we will set specific individuals worldwide. Each stakeholder group key performance indicators and will continue to PERIOD, SCOPE AND BOUNDARY affects our reputation, policies and best practices. measure progress against these indicators. We believe it is imperative to consult regularly This report is based on information obtained, with these groups through periodic in-person Core Aspects - Governance, Ethics and Operations, created and compiled for the fiscal year ended meetings, electronic communication, conferences Responsible Sourcing and Environmental Impacts December 31, 2016. Our previous report was and other platforms. Through these interactions, for the year ended December 31, 2015. The Employees - Global Talent Management, we receive suggestions and concerns related to boundary of this report includes 100% of our Diversity and Inclusion our business practices. leased and owned offices and 100% of our Shared Value - Community Development, Global workforce in all global regions in which we Philanthropy and Volunteerism operate. In 2016, we expanded our operations REPORTING FRAMEWORK in the Asia-Pacific (APAC) region by opening a This is our seventh year using the GRI framework. As Sustainable Product & Services -Environmental, new facility in Pune, India. We are only reporting a member of the GRI Standards Pioneer community, Social and Governance (ESG) Integration, on aggregated data from wholly owned this is our first report using GRI Standards, the GRI's Responsible Investment Products and Services subsidiaries. No joint ventures or other entities are fifth generation of guidelines for sustainability included unless otherwise noted. There are no reporting. Under these guidelines, this report EXTERNAL ASSURANCE restatements from prior years and no significant has been prepared in accordance with the GRI changes in size, structure, supply chain or Standards, Core Option. Refer to the Independent Accountants' Review ownership from previous reporting periods. Report from KPMG on page 6. Questions related to this report can be sent to [email protected].
Corporate Social Responsibility at Northern Trust 7 MATERIALITY MATRIX
Governance and Risk Management 1. Board oversight HIGH 2. Transparency 3. Management of legal and regulatory framework
) Ethics and Compliance 4. Ethical conduct 5. Data privacy and security (External
6. Anti-money laundering (AML) and anti-bribery and corruption (ABC) Employees 7. Global talent management 8. Employee diversity and inclusion IMPORTANCE 9. Employment Practices Community 10. Economic impact
11. Fair lending / Community
LOW Reinvestment Act 2.2 2.4 2.6 2.8 3.0 3.2 3.4 3.6 3.8 12. Global philanthropy 13. Volunteering
2.2 2.4 2.6 2.8 3.0 3.2 3.4 3.6 Operations 14. Direct environment impact LOW IMPACT (Internal) HIGH Products and Services 15. ESG investment products
Corporate Social Responsibility at Northern Trust 8 HONORS BEST BANKS IN AMERICA NORTHERN TRUST HIGHLIGHTS Forbes 2016 (as of and for the year ended December 31, 2016)
BEST PRIVATE BANK IN THE UNITED STATES Financial Times Group, 2016
ONE OF THE “WORLD’S MOST ETHICAL Assets under $ COMPANIES” custody 6.7 Ethisphere Institute trillion 2016 – Third Consecutive Year
100 BEST ADOPTION-FRIENDLY WORKPLACES LIST Assets under $ Dave Thomas Foundation For Adoption, 2016 942 management billion TOP 50 COMPANY FOR EXECUTIVE WOMEN National Association For Female Executives 2016 – Seventh Consecutive Year
Return on equity TOP 50 COMPANIES FOR LATINAS TO WORK 11.9 percent FOR IN THE UNITED STATES Latina Style Magazine, 2016
100 BEST COMPANIES FOR WOMEN IN INDIA Working Mother & AVTAR, 2016
FTSE4GOOD GLOBAL INDEX 2016 –Tenth Consecutive Year
DOW JONES SUSTAINABILITY NORTH AMERICAN INDEX 2016 – Sixth Consecutive Year
Corporate Social Responsibility at Northern Trust 9 CORE ASPECTS
Governance Risk Committee through its oversight of Connie L. Lindsey, Executive Vice President and the Corporation’s global risk management Head of Corporate Social Responsibility and framework and risk management policies. WHAT IS TRUSTWORTHY? Global Diversity & Inclusion, is responsible for Ethics Trustworthy is a monthly video the design and execution of a comprehensive All global partners are expected to adhere to series that features stories about CSR strategy. Ms. Lindsey reports directly to and uphold our core values, exercise the highest Frederick H. Waddell, the Chairman and Chief ethical judgment and comply with laws that real people in challenging business Executive Officer of Northern Trust Corporation apply to their duties. Partners also must follow situations. The stories highlight both (the “Corporation”). Ms. Lindsey also chairs the all laws and regulations and avoid any situation good and poor decision-making Executive Corporate Social Responsibility Council, that may trigger a conflict of interest. We expect a group of senior partners throughout the partners to treat all information as confidential; and explain the consequences organization that enables the implementation of breaches of confidentiality obligations may bring that can affect both the individual Northern Trust’s CSR strategy through the setting disciplinary action. All partners are required to take and tracking of goals related to material aspects of three courses annually: “Global AML & Sanctions,” and the Northern Trust business. our CSR strategy, including sustainability initiatives. “Information Security at Northern Trust” and By presenting stories that are The Corporation’s Board of Directors provides “Standards of Conduct Policy.” engaging, thought provoking general oversight of Northern Trust’s corporate All partners are required to certify their compliance and relevant to our business, citizenship and social responsibility matters with the Code of Business Conduct and Ethics of significance to the Corporation and its and complete the Standards of Conduct Policy Trustworthy aims to help each subsidiaries. This oversight was facilitated by Training course, which contains information partner remember the importance the Board’s Corporate Social Responsibility related to anti-corruption. Both certification and of adhering to our core principles: Committee in 2016, and going forward training were completed by 100% of partners. will be facilitated by the Board’s Corporate service, expertise and integrity. Governance Committee, which assumed the Annual anti-corruption training is required for primary duties, powers and responsibilities of client-facing personnel as well as global marketing, the Corporate Social Responsibility Committee finance, audit, legal and compliance professionals. in April 2017. Oversight of certain financial In addition, we provide expanded anti-corruption and operational risks associated with climate training to partners in Europe, the Middle East change and other environmental risk factors and Africa (EMEA) and APAC in accordance with is also provided by the Board’s Business regulatory requirements.
Corporate Social Responsibility at Northern Trust 10 OPERATIONS We use energy to power our data centers and Market Based: MT CO2e per FTE facilities, the majority of which are located in North America. As a result, the bulk of our greenhouse gas 2015 2016 Corporate Services Group and (GHG) emissions stem from our North American Environmental Policies operations. We first started tracking our carbon Scope 1 - per FTE 0.190 0.139 footprint, comprised of the carbon dioxide Northern Trust’s Corporate Services Group, charged equivalent of all GHGs produced in our operations, with management of our real estate portfolio, Scope 2 - per FTE 2.850 2.636 in 2006. Since then, we have improved our data procurement and facilities services, executes collection processes and calculation methodologies Northern Trust’s objective to reduce effectively or Scope 3 - per FTE 1.242 1.095 to align with the GHG Protocol. eliminate negative environmental impacts from our supply chain. We detail our environmental Working closely with our building managers, Total - per FTE 4.282 3.869 expectations of vendors by providing them with our Northern Trust follows the best environment- Supplier Code of Conduct. Vendors’ sustainable friendly building strategies and practices outlined Total Full-Time Employees 16,152 16,874 practices are factored into the selection process, by The U.S. Green Building Council’s Leadership and we regularly review suppliers’ adherence to the in Energy and Environmental Design (LEED) Non-Governmental Organizations Supplier Code of Conduct and pursue corrective program. Among our offices in North America and Advocacy Groups measures when necessary, as noted in our Global and APAC, we have received two LEED platinum We believe partnering with non-governmental Procurement Policy. certifications, seven gold certifications, one silver organizations (NGOs) and advocacy groups certification and one general certification. In Northern Trust recognizes that the long-term allows us to maintain transparency and hold addition, we use reliable and sophisticated tracking viability of our business and that of our clients is ourselves accountable to our environmental programs to assist with monitoring and managing tied to the health and well-being of our planet. We sustainability practices. Northern Trust and our our environmental performance and to calculate therefore commit to protecting and preserving the surrounding communities benefit when we our annual carbon footprint. environment and to eliminating or mitigating any publicly report our environmental footprint— negative environmental impacts from our operations. After a comprehensive study was completed in such as our GHG emissions, energy use and the 2015, we set a goal to reduce our total Scope We align our business with the fundamental principle risks and opportunities associated with climate 1, Scope 2 (using the market-based approach) of sustainability—meeting the needs of the present change—under the supervision and guidelines and Scope 3 carbon emissions by 3% per generation without compromising the ability of of reputable third-party organizations. And by full-time employee (FTE) by 2020, with our 2015 future generations to meet their own needs. We do joining communities of investors who hold the emissions as a baseline. As we have currently this by integrating environmental considerations health of our planet in high regard alongside reduced our emissions by 9.65% in the first year into our company-wide decision-making processes, the success of their business establishments, after setting this goal, we will look to set a new committing to improving continually our business Northern Trust strives to affect positive change goal by the end of 2017. practices and delivering tangible, positive results in the corporate responsibility as it is directed related to the environment. towards our environment.
Corporate Social Responsibility at Northern Trust 11 The NGOs with which we collaborate include and advocating for increased commitment to Procurement the U.S. Green Building Council, the Carbon conservation and protection of environmental Northern Trust expects vendors to employ high Disclosure Project and Institutional Investors resources. PTG organizes Earth Day celebrations standards of recycling and waste management Group on Climate Change. as well as other environment-related volunteer governance and to conduct business in an ethical, opportunities and has been a key activator of Enterprise Enablement legal and socially responsible manner. We specify behavior change in Northern Trust’s culture around these terms and conditions in our procurement Northern Trust's Enterprise Enablement Department climate change and other environmental issues. works to ensure our infrastructure is used policy and review it during vendor evaluations. efficiently and contributes to our ongoing efforts in Local Communities Northern Trust’s global procurement department conservation and sustainability. Because powering Northern Trust functions as a global citizen is led by a senior-level manager, the global head data centers accounts for a considerable amount whose contribution to building a healthy, of procurement, who drives the strategy and sets of our carbon footprint, we attempt to consolidate sustainable environment involves deep regard policies worldwide. servers or downsize them through virtualization. for the surrounding communities. Our footprint Northern Trust is committed to integrating ethical, We also optimize power and resource utilization affects the larger ecology and can make tangible social and environmental factors into our global by life-cycling older equipment into more energy- differences in the lives of community members, procurement policy. Each vendor signs a vendor efficient devices, increasing signage encouraging which is why we are meticulous in forecasting code of conduct and provides a clear view into its recycling, using teleconferencing to reduce business and reducing any environmental risks or harms CSR policies. We check our vendors against the travel and defaulting to smart printing features. induced by our business operations. U.S. Office of Foreign Asset Control to ensure we comply with any economic and trade sanctions. Partners Think Green We also believe in the power of community-based actions in affecting positive change for the good Partners Think Green (PTG) is Northern Trust’s global Other aspects of our global procurement of our planet and future generations. Northern partner environmental engagement program program include: aimed at increasing awareness of sustainability Trust commits its resources in ways not limited to • As part of Northern Trust’s due diligence process, issues, promoting best practices and unifying capital support and partner volunteerism to assist each vendor providing goods and/or services environmentally focused business operations under with local initiatives and organizations focused on outside of the United States to Northern Trust the same umbrella. The PTG program enables close environmental awareness and protection. We are completes an anti-bribery vendor questionnaire. collaboration between our building managers and a longstanding sponsor of the Chicago Botanic Risk accuracy and truthfulness are reviewed by PTG champions—partner volunteers—in delivering Garden as well as other land trust organizations our global procurement and global compliance consistent environment-related messages, gauging and local youth programs that aim to increase departments to determine whether we will partner feedback throughout policy implementation appreciation of biodiversity and motivate sustainable actions in everyday life. continue to conduct business with each vendor.
Corporate Social Responsibility at Northern Trust 12 • At a minimum, vendors are expected to obey • Administering jointly developed key supported by senior management and executed the laws of the country of manufacture, sale or performance indicators via our procurement professionals. How and with distribution. In addition, we expect all suppliers to • Developing and implementing a vendor whom we do business reflects our commitment adhere to the requirements and standards in our management plan to developing and supporting diverse business Supplier Code of Conduct. owners. Diverse suppliers who work with us as • Assigning vendor managers with the partners contribute to our bottom line and foster • Our top 100 vendors comprise more than 74% of responsibility for specific activities that the our total U.S. spending. increased competition and innovation as well segmentation requires as enhance our ability to provide clients with The goals of Northern Trust’s vendor • Monitoring and reporting on the status of excellence in service. management program are to: open vendor issues In 2016, we spent approximately 12% of our annual • Provide and implement the framework to • Establishing performance improvement goals expenditure with minority- and women-owned monitor and manage vendors for ongoing vendor relationships as needed companies and firms owned by individuals with disabilities. Northern Trust continues to bring • Determine the activities necessary to manage • Conducting regular vendor business diverse suppliers into our supply chain. the vendor relationship review meetings We collaborate with various organizations to • Ensure consistency and compliance with Our procurement policy promotes a fair and focus on economic development, growth and regulatory guidance objective bidding process by neither requiring the learning, including the Chicago Minority Supplier • Establish a continuous improvement use of local suppliers nor measuring our spending Development Council, the Women’s Business philosophy for the vendor relationship with local or regional suppliers. Development Center, Chicago United, and the • Ensure compliance with contractual terms Supplier Diversity Chicago Area Gay and Lesbian Chamber of and conditions Supplier diversity is an essential component of Commerce. Northern Trust is an active member The vendor management process includes: developing a world-class global procurement of the Financial Services Roundtable of Supplier organization. Northern Trust’s supplier diversity Diversity for the National Minority Supplier • Using vendor segmentation program is led by a senior-level manager, the Development Council, a networking group of • Applying a governance model appropriate for director of supplier diversity. Northern Trust financial services companies. the vendor’s designated segment considers supplier diversity a corporate strategy
Corporate Social Responsibility at Northern Trust 13 PARTNERS (EMPLOYEES) Northern Trust’s partners are critical to our also offers external development programming for success, and we take our search for and retention managers on various management and leadership of top talent seriously. Our talent identification, topics. These interactive programs provide peer talent sourcing and recruiting strategies are networking opportunities and direct access to well- targeted to specific locations using a variety of known expert facilitators. channels including job boards, colleges, networks, In addition, Northern Trust offers an educational associations and online social networks. Hiring assistance program that encourages partners decisions are based on a variety of factors, to pursue further education. A new mentoring including educational background, relevant guidebook serves to encourage partners at experience, past accomplishments, professional all levels to seek mentoring opportunities. The licensing and strong evidence of integrity and guidebook includes tools and resources to enable ethical behavior. a mentoring relationship. Talent Management and Education For high-potential partners, Northern Trust Talent Northern Trust’s talent management team has Management administers multiple leadership designed and created blended learning solutions programs tailored by career level. These leadership in a customized training portfolio of core, manager, programs are focused on building a healthy sales and client servicing programming that pipeline of leadership talent to meet our evolving delivered more than 400,000 hours of training business needs. in 2016. In addition, these teams launched new The Northern Trust Rotational Development 400K onboarding sales and client service curricula, Program is designed to build the technical skills, developed a new behavior approach for partners Northern Trust partners business acumen and leadership abilities of recent and designed a new manager philosophy. college graduates. Program members participate in averaged 25 hours Paired with this new manager philosophy are meaningful job rotations over an eighteen-month of training-for a total targeted learning and development opportunities period. On-the-job learning is supplemented with of more than 400,000 for managers. Training classes, guidebooks, articles, additional development activities, including a webinars and suggested web pages are organized comprehensive program orientation, mentoring, hours across the by leadership level and encompass a range leadership speakers, a book club, community organization-in 2016. of topics including team development, results service events, a competitive business case delivery, performance management, emotional challenge and targeted training courses. intelligence, agility and productivity. Northern Trust
Corporate Social Responsibility at Northern Trust 14 The Enterprise Talent Leadership Program aims to We strive to enhance the pipeline of minority prepare high-performing mid-career partners for talent through an integrated strategy that includes leadership success through the following program three key elements: key role development, talent “The ‘Hiring Our Heroes’ components: acquisition and career progression. program has had a meaningful In 2016, our talent acquisition and diversity and • Leadership assessment and self-awareness impact on the community by • Career mapping and development planning inclusion functions co-sponsored the “Hiring Our helping support local veterans • Mentoring assignments Heroes” initiative in our Tempe Arizona office to help • Targeted development and leadership veterans, transitioning service members and military transitioning back into the spouses find meaningful employment opportunities. skill-building The 10-week program was the first of its kind in workforce, and on Northern • Exposure to senior leadership Arizona, which is home to nearly 500,000 veterans. Trust by providing us with the Diversity The 10 Northern Trust participants gained corporate opportunity to recruit and hire experience through assignments in our technology, Northern Trust values diversity as an essential operations and finance functions. With Northern some great talent.” element of our corporate culture. The broad Trust guidance, participants established professional array of perspectives that result from acquiring, networks and developed new skills. - Pam Higdon developing and retaining a globally diverse Director of Northern Trust The program was highly successful, resulting in nine workforce is a crucial contributor to our excellence Tempe Operating Center. new permanent or contract placements at Northern and innovation across our business practices and Trust. “The ‘Hiring Our Heroes’ program has had a our community engagement. meaningful impact on the community by helping The Diversity and Inclusion function reports partners around the globe who share an affinity for support local veterans transitioning back into the to Northern Trust’s head of corporate social the strategic mission of the group. workforce, and on Northern Trust by providing us responsibility and global diversity and inclusion, who with the opportunity to recruit and hire some great Northern Trust’s BRCs help foster a culture of directly reports to the chief executive officer. Two talent,” said Pam Higdon, director of Northern Trust’s inclusion by helping partners support one another chief diversity and inclusion officers are responsible Tempe Operating Center. in their personal and professional growth, providing for the design and execution of topic-relevant networking and mentoring opportunities, supplying Northern Trust believes in fostering an inclusive programs across the Americas, EMEA and APAC. assistance on branding strategy and business environment where our partners’ unique mix of Our diversity and inclusion strategy is driven by development across communities and demographic attributes and diversity of perspectives can serve the overarching leadership of Northern Trust’s groups and serving as liaisons to prospective and as catalysts for innovation. To help ensure our management group, which realizes and embeds our existing clients. The BRCs also play a vital role in commitments to diversity, inclusion and innovation vision at all business levels. A sub committee of our the recruitment, retention and development of a are embedded in the fabric of our company, Board of Directors is also responsible for providing globally diverse workforce and serve as an advocate Northern Trust sponsors 11 business resource oversight with respect to our diversity and inclusion on behalf of their constituencies, further enabling councils (BRCs). These councils are partner-initiated, policies, programs and strategies. Northern Trust to be an employer of choice. governed and led, and are open to all Northern Trust
Corporate Social Responsibility at Northern Trust 15 GLOBAL DIVERSITY AND INCLUSION STRATEGY AND GOVERNANCE
SPOTLIGHT ON LIFE
The newest BRC at Northern Trust is the ARD OF DIRECTO BO RS Living In Fullness Every Day (LIFE) Business
Resource Council. A group of partners M G ADVA A PR NCI N identified an opportunity for a new BRC WORKIN OFES NG A IES SI G FAMIL R ONAL E Y ESOUR S M and, over the course of few years, steadily, IT BUSINESS CO CE E S CE UN N CI resolutely and "faithfully" brought the idea R RESOUR L L T E CI L P E A & V N IN COUN ADERSSIAN I E B O to fruition. D M RESOURUS E P ERSHI I R WO D RC IVERSITY IN CO NESS H E A L L D CL R E E U CI A SHIP CO US IP With approximately 250 members, the LIFE I L OB DER UN IO UN A L BUSINESSSO L EA CI CE E UN G L L N C T P R I I BRC aims to facilitate a safe and welcoming L N P CO G U environment for all Northern Trust partners S G
S Y C R E R T L I L E RESOU BUSINESS O to celebrate their diverse beliefs, practices ION E I S I CO I A BL RY T NC L R C N E N U P RC E N C IA CI N AC T UN P TA TA A and religions. The organization’s May 2016 V I U L I R T U C S EC O K IL D RC CI S C S A D M SSIS OUN I A kick-off event featured a panel discussion of PR ESOU L O E
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