Adopting an impact investing approach
Driving real-world outcomes with impact investing
The World Economic Forum’s Global Risks Report, developed in collaboration with MarshMcLennan, provides an annual reminder of the fundamental interconnections and challenges between economic systems and the world’s troubled natural ecosystems.
More investors are opting to go beyond ESG considerations to support positive change through impact investing. Impact investors connect the pursuit of risk-adjusted returns with the delivery of positive real-world outcomes, often connected to the United Nations Sustainable Development Goals (SDGs). Each SDG provides a range of impact investment targets. For example, climate action is a key target one that motivates allocations to renewable energy or green buildings.
Impact investing targets underserved areas of the global economy. For example, it aims to help meet the needs of the “bottom billion,” and addresses critical global problems such as climate change.
Creating an optimal and diversified strategy can be challenging, but it is not impossible. We can work with you to identify themes, source and integrate opportunities into your portfolio, and report on and monitor your progress.
Defining your impact investing approach
There are a number of approaches to sustainable investment, including ESG integration and screening, thematic investing and impact investing. Impact investing starts where ESG ends and spans opportunities that deliver varying market rate returns.
Some investors are willing to lower their expected levels of return to focus on impact in a particular area. However, we believe that when executed well, impact investing can generate a positive social or environmental impact in addition to delivering the return potential you are pursing.
We can help you review your objectives against your investment goals, defining an optimal strategy that balances your ESG ambitions with returns.
Spectrum of impact ambition
Discover impact investing
Considerations for impact investing
-
Define your ambition and themesWe can help you determine where you want to make a real impact and define what that could look like for your portfolio.
-
Accessing managersWe have strong relationships with hundreds of managers around the world and can help you identify those with the right skill sets and opportunities to make a real impact.
-
Finding the right balanceWe can help you assess and find an optimal balance between generating financial returns and delivering an ESG impact, without sacrificing on either, when possible.
-
Reporting on progressWe can help you monitor and report on your progress. This will set you apart from any organisations that appear to be “greenwashing.”
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.