E-mail this page				Print this page

Contact: Stephanie Poe
Tel: +1 202 331 5210

United States
New York, 2 May 2006

Mercer's investment consulting business has become a signatory to the global Principles for Responsible Investment. The Principles are the product of a year-long process convened by the United Nations.

More than 70 experts and over 20 of the largest institutional investors in the world developed the Principles. Mercer's investment consulting business served as the UN's consultant on the process.

The Principles, which are voluntary, identify a range of steps investors can take to integrate environmental, social and governance (ESG) issues in several areas, including investment decision-making, active ownership, transparency, collaboration and gaining wider support for these practices from the financial services industry. The six overarching Principles are underpinned by a set of 35 possible actions that institutional investors can pursue.

"The need for these Principles is driven by a simple investment reality," said Tim Gardener, Global Head of Mercer's investment consulting business. "While environmental, social and corporate governance factors are increasingly perceived as having an impact on corporate financial performance, they are rarely incorporated into investment decision-making. This leaves room for corporate scandal, environmental degradation and human rights abuses - all of which can affect both a company's bottom line and its share price."

There are three categories of signatory: asset owner, investment manager and professional service provider. More than 30 leading investors from 15 countries, representing US$2 trillion in assets, signed on to the Principles during an April 27 ceremony presided over by UN Secretary General Kofi Annan at the New York Stock Exchange. The investment managers and professional service partners will sign on to the Principles today at a ceremony in Paris. All signatories are listed on www.unpri.org.

As a signatory to the Principles, Mercer's investment consulting business joins many of the most powerful institutional investors in the world in recognizing that ESG issues can be material to investment performance, particularly over the long term.

"By becoming a signatory to the Principles, Mercer's investment consulting business is making a commitment to providing services that support the implementation of the Principles by investors and to improving such services over time," said Jane Ambachtsheer, Mercer's global head of responsible investment.

As signatories increasingly look to incorporate ESG issues into their investment processes, the implementation of the Principles by institutional investors will affect the investment supply chain. The Principles also provide an overarching framework so that investors around the world can tackle the challenge of addressing this complex area in a consistent manner and learn from each other's experiences as they do.

"Mercer's investment consulting business is thrilled to have been able to support the development of the Principles for Responsible Investment, and we are delighted to confirm our commitment to them," said Ms Ambachtsheer. "We invite other consulting firms to join us in becoming a signatory. If we can tackle the barriers to responsible investment together as an industry, we are all more likely to make progress."

See www.mercer.com/ri for information about Mercer's global responsible investment unit.

See www.unpri.org to read the Principles for Responsible Investment.

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.

Mercer's Responsible Investment business helps investment fiduciaries integrate environmental, social, and corporate governance (ESG) considerations into investment decision making and ownership practices.

E-mail this page

Print this page

Contact: Stephanie Poe
Tel: +1 202 331 5210