Institutional investors are under pressure to address climate loss, damage and transition. As trusted advisors to our clients, we have the ability to effect deep and global change. We know that many of our clients are committed to using their influence to accelerate the journey to net zero, in line with regulation, industry standards and beneficiary/members and stakeholder wishes.
At this year’s COP27, Mercer’s Rich Nuzum, Cara Williams, Helga Birgden hosted a panel discussion – “Harnessing the power of global capital to target local climate challenges” – alongside esteemed guests Rick Lacaille, Senior Advisor, StateStreet, and Gertraud Wollanksy, Senior Advisor on climate issues in the Austrian Ministry for Climate Action. They discussed client actions, opportunities and challenges to investing for net zero pathways. You can watch a recording here.
Seeking to mitigate risk and drive adaptation beyond COP27
Advancing transition potential:
Global Asset Manager Survey 2022
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.
The ethos of investing with an ESG focus can be used by everyone, yet investors in different sectors and regions often take their own approach. Talk to our experts about how you can create something to fit your specific needs.
Implementing an investment solution or OCIO can help you create a long-term strategy that aligns with your own bespoke ESG policy. It can also help cut costs, reduce risk, take up less of your time and build resilient portfolios.
Our extensive experience in portfolio modeling enables us to help our clients reshape their own investments to address ESG considerations over the short, medium and long term. We examine portfolios through the lens of important themes including population growth, resource scarcity and energy efficiency. This helps us identify companies, sectors, assets and projects that are expected to grow through new technology, along with those that may be put at risk due to these themes and the changes they bring.
Our transition framework helps investors establish their current emission baselines, while assessing how to make reductions, set target milestones and developing an implementation plan that can be integrated within decisions on strategy and portfolio construction.
In line with our goal to place sustainability at the center of our investment approach, we have committed to target net-zero absolute carbon emissions by 2050 across the majority of our funds as part of our global investment roadmap. We expect to reduce absolute portfolio carbon emissions by 45% from 2019 baseline levels by 2030. Find out more in a short video by Mark McNulty, International Head of Clients, and read our press release.
Mercer’s global partnership with Ortec Finance provides all types of institutional investor with rigorous analysis of the climate crisis. Our scenario modelling, from 1.5°C to 4°C warming, helps investors decide how they want to influence the climate crisis and provides the basis for making their portfolios robust to future challenges while exploring emerging opportunities.
Our quantitative analysis is grounded in economics and science and is in line with TCFD reporting. It provides a deep level of granularity, allowing clients to consider whether climate impacts are fully priced into every asset class and economic sector before making reallocation decisions. The long-term projections are integrated into Mercer’s capital market assumptions across all our services.
For almost 20 years, we have championed how incorporating sustainability into a portfolio does not mean sacrificing returns but instead has the potential to help enhance them. We launched our proprietary ESG ratings platform for investment strategies in 2008 reaching over 4,000 strategies.
Investment Consultant team of the year
Our sustainable investment team was once again recognized as Investment Consultant team of the year. Learn more here. Discover what we're anticipating coming next in the path towards sustainable investment in this article by two of our esteemed team, Hill Gaston and Jaimee To.
#1 OCIO assets under management
We are delighted to continue to lead the global market for full discretionary OCIO assets under management, for our Investment Solutions and OCIO services, to help clients address these critical investment issues. Learn more here.
Investment & Stewardship Policy awarded 5 Stars
We are proud to have received three 5 star ratings from the UN PRI 2021 Sustainability Assessment (2021 pilot). This acknowledges our commitment to help our clients reduce reputational and investments risks associated with poor ESG practices, and identify opportunities that emerge from new trends and regulatory change. Read Mercer’s UN PRI Assessment Report and UN PRI 2021 Transparency Report to learn more.
Mercer is proud of its ESG commitments, which are reported by Marsh McLennan, as well as its responsible investment policy and TCFD report. Learn more about Marsh McLennan's approach here.
1 Source: European Asset Allocation Insights 2021.
2 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.
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