Issue 19

We are pleased to share with you the latest edition of our Responsible Investment Update, a global review highlighting important new resources and reports about integrating environmental, social and corporate governance (ESG) considerations into investment decision-making processes.

Go to the titles below to read articles on the following topics:

• Aled Jones Joins Mercer’s Responsible Investment Team 
  Jane Ambachtsheer welcomes Aled Jones to the team and discusses what he is looking forward to working on in his new role. 
  

   

• Stewardship Codes – An Emerging Global Phenomenon
  In addition to the UK Stewardship Code, principle-based codes have been developed in a number of countries around the world. This article reflects on the development of stewardship codes across regions that aim to improve transparency and empower institutional investors to enforce and enhance their role as stewards of capital.
  

   

• Mercer Launches New Stewardship Services
  Mercer has developed a suite of services to help clients with their new responsibilities under various UK and European stewardship codes. In this article, learn more about the value of stewardship and the codes’ requirements, intended audience and principles.
  

   

• Opportunities for Sustainable and Responsible Investing in US DC Plans
  In a recent joint study, the US SIF foundation and Mercer found that the number of defined contribution plans in the US offering a sustainable and responsible investing choice could double in the next two to three years.
  

   

• International Codes and Conventions – Are Pension Funds Missing in Action?
  The process around creating, ratifying, and implementing norms, codes, and conventions (such as the UN Global Compact and the Convention on Cluster Munitions) typically involves corporations, governments, and non-governmental organizations, but not investors. Because investors are increasingly utilizing these instruments, this article discusses a missed opportunity to involve investors in the development, implementation, and ongoing governance of codes and conventions.
  

   

• Proposed ESG Disclosure Requirement in Ontario
  The Ontario government recently proposed that pension plans registered under the Pension Benefits Act be required to disclose if their Statements of Investment Policies and Procedures address ESG factors. In this article, learn about the global trend towards improved ESG disclosure and practical first steps for considering an approach to this disclosure.
  

   

• Institutional Share Voting in Australia
  The Australian Institute of Company Directors (AICD) recently commissioned Mercer to map the institutional share voting process from end-to-end. The resulting national study, Institutional Share Voting and Engagement: Exploring the Links Between Directors, Institutional Shareholders and Proxy Advisors, is a first of its kind and has few parallels, even on a global basis. Key findings include that institutional shareholders are more activist today (and more willing to vote 'against') than 10 years ago; superannuation funds are doing more of their own voting; proxy advisors are viewed as influential; and, the need for early and broad communication in spite of tight timelines presents a challenge. For more information, please read the full report. 
  

For access to our publications and up-to-date coverage of developments, bookmark our homepage, www.mercer.com/ri.

We welcome your thoughts and views about this evolving industry.

Sincerely,

The Responsible Investment Team

Mercer