Seeking an optimal sustainable investment strategy
We’re at a critical point for sustainable investment: Governments are establishing sustainable roadmaps and regulations; investors are adopting Sustainable Development Goals; and donors and beneficiaries are demanding that investors take real action to stop pollution, grow the economy sustainably and protect the vulnerable.
As they incorporate these ESG considerations into their portfolios, investors are turning their attention to how DEI issues are being acted on by managers and incorporated into strategies. They are exploring the intersection of positive environmental and social outcomes and delivering on investment objectives — otherwise known as impact investing.
Our Sustainable Investment Declaration outlines our approach and commitment to helping you make a positive sustainable impact while targeting favourable returns.
Common questions investors are asking themselves:
- Where am I on my sustainability journey?
- Where are managers on their journey?
- What practical changes can I make today?
- How can I ensure that DEI is a priority for managers and integrated in strategies?
- Can I contribute towards the greater good and meet my objectives?
- How can I navigate the risks and opportunities presented by climate change?
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.
Impact investingWe can help you build a robust impact investing strategy designed to accelerate real-change and whilst helping you pursue stronger returns for your portfolios.
Diversity, equity and inclusion (DEI)We can help you define and build a diversity, equity and inclusion (DEI) investment strategy that seeks to deliver positive change and stronger portfolio outcomes.
Four important considerations defining your sustainable investment approach
There are many ways to approach ESG within a portfolio. The following are the main strategies, which can be implemented individually or in combination. We believe success requires a mixture of these elements:
- Integration: Include ESG factors in investment decisions.
- Investment: Allocate to sustainability themes or impact investments as a source of new opportunities.
- Stewardship: Engage with underlying companies and policy makers, and exercise your right to vote.
- Screening: Avoid companies that are not aligned with your values.
Climate change scenario modelling
Our global partnership with Ortec Finance has enabled us to provide a diverse set of institutional investors with rigorous analysis of the climate crisis. Our scenario modelling 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 recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), is grounded in economics and science. This analysis provides a deep level of granularity, allowing asset owners to explore to what extent climate impacts might be priced across asset classes and sectors to assist with strategic decision making. The long-term projections it provides are integrated into Mercer’s capital markets assumptions across all our services. In the UK, the analysis supports the requirements in the Climate Change Governance and Reporting Regulations.
Actions and tools to help amplify your sustainable investment strategy
Mercer’s Responsible Investment Total Evaluation (RITE) approach
Our commitment to help make a difference
Our commitment to net-zero by 2050
We have identified clear goals underpinned by accountability
We have committed to hit net-zero absolute carbon emissions by 2050 for our UK, European and Asian clients with discretionary portfolios and for most of our multi-asset funds domiciled in Ireland.
We will produce annual progress reports on absolute emissions, alongside carbon intensity reports.
Our latest insights on sustainable investment
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