A new chapter begins
Building a robust sustainable investment strategy
How a sustainable investment strategy can be beneficial
Questions to ask when defining your approach:
- Where am I on my sustainability journey?
- Where are asset managers on their journey?
- What practical changes can I make today?
- How do I strike an optimal balance between the sustainability and meeting my financial objectives?
Considerations when building your sustainable investment strategy
Extreme weather events are a pressing issue for the planet and for the investment community. Institutional investors, such as pension funds, financial institutions, insurers, wealth managers, endowments and foundations, hold trillions of dollars in assets in their portfolios. In a decarbonizing economy, these assets are highly exposed to climate transition risks.
Climate change scenario modelling
Our global partnership with Ortec Finance has enabled us to provide all types of institutional investors with a rigorous analysis of the climate crisis. Our scenario modeling uncovers emerging opportunities, helping investors decide how they want to influence the climate crisis and how to make their portfolios resilient against future challenges.
Our quantitative analysis, in line with the Task Force on Climate-related Financial Disclosures (TCFD), is grounded in economics and science. This analysis provides a deep level of granularity, allowing clients to consider whether climate impacts are fully priced into every asset class and economic sector before reallocation decisions are made. The long-term projections it provides are integrated into Mercer’s capital markets assumptions across all our services.
There are a number of approaches to sustainable investment, including environment, social, governance factors and screening, thematic investing and impact investing. Some investors are looking at impact investing to help them strike a balance between what they consider is doing the right thing for the planet, while pursuing financial returns. There are a number of considerations for impact investing.
Considerations for impact investing
- Defining your ambition and project themes
- Identifying opportunities to strike a balance
- Sourcing and accessing managers
- Reporting on progress and impact
Our team of experienced specialists can help you review your objectives against your investment goals, defining an optimal strategy that balances your sustainable investment ambitions with returns.
Tools to help you implement your sustainable investment strategy
Climate Benchmark tool
Transition framework for emissions reduction
Sustainable Investment Pathway
Incorporating net-zero into client investment solutions
- By 2050, we target net-zero carbon emissions for our UK, European, Australian, New Zealand and Asian clients with discretionary portfolios and for most of our multi-asset funds domiciled in Ireland.
- We will produce annual progress reports for our clients on emissions, alongside carbon intensity reports.
Sustainable investment solutions for institutional investors
-
Responsible Investment Total Evaluation (RITE)
This tool provides an evaluation across your beliefs, policies, processes and portfolio. It shows you how you’re doing on a scale from A++ to C and compares you to your peers. It can also monitor your improvement over time. -
Sustainable investing
We build or optimize our clients’ sustainable investment strategy to help them meet their investment objectives. Our research, tools, advice and solutions are designed to help mitigate risks to portfolios while seeking to capture investment opportunities associated with sustainability. -
Analytics for Climate Transition (ACT)
This framework assesses a vast range of data to rank the transition capacity of listed companies to help you position your portfolios for a carbon-free future. -
Investing for impact
We can help you build a robust impact investing strategy designed to accelerate real-change and whilst helping you pursue stronger returns for your portfolios. -
Integrating inclusion
We work with you to help you establish what your values are around inclusion, and build your investment strategy around them, aligning with your policies. -
Investment research
Access the latest strategic investment research on MercerInsight Community and our forward-looking asset manager research on MercerInsight to help guide your investment decisions.
A partner to your portfolio
Introducing some of our team
Leverage our breadth and depth
Awards
Investment consultant of the year 2024
Mercer has been recognized as the investment consultant of the year by Environmental Finance for pioneering sustainable investment and assisting more than 25 institutional investors around the globe to better assess their exposures to climate transition risks.
It's all here: MercerInsight® Community
Wherever you are on your sustainable investment journey, we can help.
References to Mercer shall be construed to include Mercer Financial Services Middle East Limited and/or its associated companies.
© 2023 Mercer Financial Services Middle East Limited. All rights reserved.
This 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.
Mercer does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.
This does not constitute an offer to purchase or sell any securities.
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.
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. Mercer provides recommendations based on the particular client's circumstances, investment objectives and needs. As such, investment results will vary and actual results may differ materially.
Past performance is no guarantee of future results. The value of investments can go down as well as up, and you may not get back the amount you have invested. Investments denominated in a foreign currency will fluctuate with the value of the currency. Certain investments, such as securities issued by small capitalization, foreign and emerging market issuers, real property, and illiquid, leveraged or high-yield funds, carry additional risks that should be considered before choosing an investment manager or making an investment decision.
Information contained herein may have been obtained from a range of third party sources. While the information is believed to be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential, or incidental damages) for any error, omission or inaccuracy in the data supplied by any third party.
For the most recent approved ratings of an investment strategy, and a fuller explanation of their meanings, contact your Mercer representative.
Mercer universes: Mercer’s universes are intended to provide collective samples of strategies that best allow for robust peer group comparisons over a chosen timeframe. Mercer does not assert that the peer groups are wholly representative of and applicable to all strategies available to investors.
Please see the following link for information on investment management index definitions.
Not all services mentioned are available in all jurisdictions. Please contact your Mercer representative for more information.
In the United Arab Emirates, Mercer’s Services are delivered by Mercer Financial Services Middle East Limited (“MFSMEL”). MFSMEL is registered with the DIFC, License No. 0939 and regulated by the Dubai Financial Services Authority (DFSA).
For the conflict of interest statement of Mercer Investments, of which MFSMEL is a part, contact your Mercer representative or see https://www.mercer.com/conflictsofinterest.