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Principles for Responsible Investment

Last updated: 14 October 2010

 

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Mercer signs global Principles
for Responsible Investment

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PRI Report on Progress 2007

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PRI Report on Progress 2008

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PRI Report on Progress 2009

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PRI Report on Progress 2010

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Principles for Responsible Investment: Committments for long-term value

 

 

 

Launched on 27 April 2006, the Principles for Responsible Investment (PRI) was steered by the UN in collaboration with leading international asset owners, asset managers, service providers, academics and thought-leaders in the industry. Mercer's investment consulting business was the consultant to the UN through this development and is also a signatory to the global Principles for Responsible Investment.

 

As at October 2010, more than 800 signatories, representing over $22 trillion of assets under management have joined the initiative. Around 25% of the signatories are asset owners (such as pension funds), 54% investment managers and 21% professional service partners (such as Mercer).

 

As a professional service partner, Mercer has made a commitment to 'providing services that support the implementation of the Principles by investors and to improving such services over time'. With the creation of our dedicated global responsible investment (RI) business unit in 2004, we have worked with clients around the world to develop investment decision making, active ownership and collaborative approaches that support the Principles’ objectives. We are uniquely positioned to assist signatories in implementing the Principles.

 

The Principles for Responsible Investment

 

"We believe that taking a long-term horizon and integrating wider environmental, social, and corporate governance (ESG) factors into investment decisions can enhance portfolio performance (to varying degrees across companies, sectors, regions, asset classes and through time)."

 


PRI Principles

Mercer PRI Implementation Services


 Principle 1

We will incorporate ESG issues into investment analysis and decision-making

Mercer provides a range of services including training and education, strategic policy advice, peer review analysis, fund manager selection and review, as well as advice on the selection of suitable research providers.


 Principle 2

We will be active owners and incorporate ESG issues into our ownership policies and practices

Mercer can advise on the most suitable information sources to enable you to become active, engaged owners, including the development of proxy voting policy procedures and advice on active ownership strategies and providers.


 Principle 3

We will seek appropriate disclosure on ESG issues by the entities in which we invest

Mercer encourages and supports research to improve the link between company reporting standards on ESG factors and fund manager decision making. Mercer can act on your behalf to encourage fund managers to include ESG factors in their regular portfolio reports.


 Principle 4

We will promote acceptance and implementation of the Principles within the investment industry

Mercer can assist in integrating ESG into investment manager agreements, requests for proposals, searches for new mandates and review of existing investment managers. Mercer also works with industry partners on a range of RI research projects.


 Principle 5

We will work together to enhance our effectiveness in implementing the Principles

Mercer’s extensive knowledge and participation in many collaborative efforts can help to guide you in determining the best way to deploy your resources in the implementation of the principles.


 Principle 6

We will each report on our activities and progress towards implementing the Principles

Mercer can support you in communicating your activities and progress with the wider market, including the development and implementation of a communication plan and engagement with stakeholders and beneficiaries.


 

With team members all over the world, our global Responsible Investment business is uniquely positioned to advise you on the major international trends and developments with respect to ESG integration, across both asset owners and asset managers. We are experienced in providing advice on the integration of ESG across many asset classes, including listed equities, emerging markets, corporate fixed income and alternatives. We also have experience in conducting searches and ratings on sustainability branded investment opportunities in listed equities, private equity and infrastructure.

 

One of the key factors supporting success in any collaborative initiative is a continuing belief in its legitimacy and credibility. Joining an initiative is the easy part; the hard part is implementing the principles. The PRI Board recognizes this and in 2007, introduced an annual framework to assess progress amongst signatories and promote transparency to share new and innovative practices.

 

One of the key factors supporting success in any collaborative initiative is a continuing belief in its legitimacy and credibility. Joining an initiative is the easy part; the hard part is implementing the principles. The PRI Board recognizes this and in 2007, introduced an annual reporting assessment framework to assess progress amongst signatories and promote transparency to share new and innovative practices. The resulting reports review activity for the calendar year prior to its publication and are publicly available.

 

Arrow icon View 2010 report

 

Mercer is a leading global provider of investment services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing fiduciary management.

 

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Not investment advice
This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances.

 



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