Companies that operate in states on the US Department of State’s list of state sponsors of terrorism or in countries with controversial regimes can be subject to significant financial, operational and reputational risk. However, avoiding investments in these companies may expose a portfolio to risks as well. In order to provide fiduciaries with quantitative and qualitative information to address these issues, the Responsible Investment team has created a framework that assesses risks and impacts of divestment from operating in a particular country or line of business.

A number of US states, cities, educational institutions and pension plans have already divested from Sudan and Iran as a result of legislation or policy, and more are considering action. To prepare for or respond to legislative initiatives, fiduciaries can use Mercer’s objective framework to consider the impact that divestment can have on their investment portfolio and investment operations.

For more information about Mercer's divestment framework, contact Katherine Burstein and Craig Metrick.

Mercer is a leading global provider of investment consulting 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 portfolio management. We create value through our commitment to thought leadership; world-class, independent research; and top-notch consultants with local expertise.