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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 January 2008, more than 250 signatories, representing over $13
trillion of assets under management have joined the
initiative. Around 40% of the signatories are asset owners
(such as pension funds), 40% investment managers and 20% 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)."
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PRI Principles |
Mercer PRI Implementation
Services |
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 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 |
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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. |
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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. |
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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. |
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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. |
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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.
Mercer was engaged to help develop the PRI's
reporting and assessment framework. The first resulting report "PRI
report on progress: implementation, assessment and
guidance" reviews signatory activity through
2006 and is publicly available. The report on signatory progress through
2007 will be posted in June 2008. |
