Congratulations to Environmental Finance for their most recent Sustainable Investment Awards1 highlighting that ESG factors are increasingly being used by managers and organisations to select and maximise the performance of their investments. We are delighted to be recognised as Investment Consultant team of the year. Discover what we're anticipating coming next in the path towards sustainable investment in this article by two of our esteemed team, Rebecca Mather and Jill Reid.
|of investors in Europe now consider ESG related risks during the investment process, up from 55% in 2019*|
“Position for transition. How are you going to act?” By Jillian Reid and Niall O’Sullivan, Mercer
Investors are increasingly considering climate change along with issues related to ESG and diversity, equity and inclusion (DE&I). Motivated by the economic and social interest of their beneficiaries and clients, investors now have the opportunity to use their portfolios and their influence to help guide us towards a low-carbon economy. There is more to this than just simply excluding companies from certain industry sectors. In terms of climate change and the transition to a low-carbon economy for example, we believe it’s important to consider which companies are adapting to this change and those that are not.
In line with our goal to place sustainability at the centre of our investment approach, we are committing to a target of net-zero absolute carbon emissions by 2050 across the majority of our funds2 as part of our global investment roadmap. We expect to reduce absolute portfolio carbon emissions by 45% from 2019 baseline levels by 20303.
Find out more in a short video by Mark McNulty, International Head of Clients, and read our press release.
It is important to understand the potential impact of climate change and other ESG factors on your portfolio. We provide the latest updates at your fingertips through our various platforms.
Whilst sustainable investing broadly applies to everyone, different regions and sectors may be taking a different approach. Talk to our specialists about how you can create something to fit your own needs.
Implementing an investment solution or OCIO can help you create a long-term strategy that aligns with your own bespoke policy on ESG. It can also help cut costs, reduce risk, use fewer resources and build resilient portfolios.
We have undertaken extensive portfolio modeling and work with clients to reshape their portfolios to address ESG considerations. For example we look at investments associated with themes such as population growth, resource scarcity and energy efficiency that will provide access to companies, assets and projects that are expected to grow by enhancing technology.
Our transition framework helps investors set current emission baselines, assess their portfolio opportunities for emissions reductions, set targets for reductions milestones and develop an implementation plan that can be integrated within strategy and portfolio construction decisions.
We were one of the first consultants to pioneer sustainable investment and have worked both with the PRI and other international organisations to promote best practice around the world for almost two decades. As a founding signatory to the PRI in 2006, we also helped shape its original statements and aims. In 2020, we were awarded an A+ and six As from the PRI for our $306bn of AUM in investment solutions across public and private markets. Find out how we help clients navigate their sustainable investment journey.
Mercer has pioneered forward-looking ESG research and worked with investors around the world to implement long-term strategies. We can show you the way.
Helga provides investment advice on ESG and climate change in complex assignments to trustees, directors and investment boards of pension funds, sovereign wealth funds, endowments and insurers. She leads Mercer’s global Sustainable Investment Team.
Kylie is responsible for managing approximately AUD $41 billion in assets within Mercer’s multi-manager funds and co-chairs the Global Delegated Solutions ESG Integration Committee where she leads thought leadership on ESG integration and investment stewardship. Kylies team works with clientes to embedded a holistic approach to ESG integration into investment strategy and decision making.
Sarika leads on global Sustainable investment manager research, expanding coverage of investment strategies aligned to the UN Sustainable Development Goals, climate transition and other environmental and social impact themes. She also leads on ESG research and integration across asset classes and sits on the Strategic Research Group, contributing to intellectual capital focusing implementable solutions in sustainability and impact themes.
Jillian has more than 20 years’ experience across investment consulting and funds management, specialising in sustainable investment since 2011 and climate change since 2014. She advises pension funds and other institutional investors on why and how to integrate environmental, social, and governance (ESG) factors, stewardship, climate change and other sustainability trends within investment processes. This includes working closely with Mercer's regional investment solutions teams.
1 Source: Environmental Finance Sustainable Investment Awards 2021, ranked from information relevant from the time period March 1 2020 to April 16 2021, as given by each entrant to Environmental Finance. Mercer did not pay a fee to enter this award.
2 Defined as absolute carbon emissions, per $M of FUM and Scope 1&2 for 11 multi-asset Mercer Funds in aggregate and for each participating client with a discretionary growth portfolio. – for clients with discretionary growth portfolios, total client AUM has been considered here.
3 Per dollar of assets under management. While the funds continue to maintain an investment objective of seeking long-term growth of capital and income, they also promote environmental characteristics though progressive decarbonisation with a view to achieving net zero emissions by 2050.
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