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Mercer defines Responsible Investment (RI) as the integration of environmental, social and corporate governance (ESG) considerations into investment management processes and ownership practices in the belief that these factors can have an impact on financial performance.
Since 2004, Mercer Investments has grown a dedicated team of RI consultants. Today, Mercer’s RI team includes more than 15 professionals, committed to providing innovative RI advice on a global basis.
Mercer’s RI consultants continually conduct cutting edge research assignments for some of the world’s largest investors, global institutions such as the International Finance Corporation (IFC), industry associations and NGOs. This ongoing research keeps Mercer’s services relevant, innovative and at the forefront of important strategies in risk management and sustainability opportunities to achieve long-term investment objectives.
Our services include:
Trustee education and training
- Review and discuss key components and rationale for RI / ESG. Understand peer approaches and ESG implementation progress.
- Presentation series on key research and trends covering key global risks e.g. water and food shortages and systemic market failure.
Adoption and integration of corporate governance and RI into investment policy
- Develop a new policy, or review an existing one to agree a position on:
- investment beliefs
- corporate governance
- environmental and social
- climate change
- link to existing corporate social responsibility (CSR) policy.
- Draft clauses to incorporate ESG policy positions into core investment documents such as request for proposals, investment mandates and investment manager agreements.
- Evaluate requirements and benefits of becoming a signatory to the UN Principles for Responsible Investment and joining or supporting other international codes or conventions, industry associations, governance bodies, and shareholder initiatives.
- Benchmark existing capabilities and conduct a gap analysis against relevant peers. Recommend change, prioritisation and mechanisms to embed and monitor progress.
- Quantitative risk factor analysis and qualitative risk/opportunity assessment of potential climate change on a client specific asset allocation.
- Establish a strategic plan for each asset class and/or theme.
Integrate ESG factors into investment analysis, decision-making and ownership processes
- Review programs to vote all shares – domestic and international. Establish an engagement program including advice on stewardship requirements for all relevant regions.
- Review ESG fund manager ratings to assist in manager selection.
- Model ESG valuation for portfolios and/or recommend ESG related manager combinations.
Reporting and communication
- Report on outcomes to Board/Investment Committee and make recommendations on key issues and priorities.
- Reports focus on each client’s policy settings, asset class and manager level implementation, stewardship outcomes, PRI reporting (if required) and disclosure to stakeholders.
To discuss how we can help you develop a value-added approach to responsible investment, contact the RI team member in your region.
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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This contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity, without Mercer's prior written permission.
Opinions – not guarantees
The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed. Past performance does not guarantee future results. Mercer’s ratings do not constitute individualized investment advice.
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.