Institutional investors have a critical and challenging role to
play in addressing some significant global sustainability concerns.
Mercer’s Responsible Investment Total Evaluation (RITE) tool helps investors integrate environmental, social and governance (ESG) factors into investment decisions. The RITE tool gives you INSIGHT into the ESG credentials of your portfolio, an understanding of what INTERVENTIONS you could take to improve your ESG capabilities and what IMPACT making these changes would have on your RITE score. Going through the RITE process can help you visualize your portfolio through an ESG lens and undertake a transformative sustainable investment approach.
Businesses and governments globally realize the urgent imperative to embrace sustainability, while institutional investors around the world recognize they have a pivotal role to play when it comes to making a transformational impact. Despite the recognition of the importance of integrating sustainability into an investment approach many investors don’t know where to start and would benefit from guidance on the journey they could take to achieve their sustainability objectives. The RITE tool can help you plan this journey by identifying where you are today, benchmarking your ESG performance against your peers and providing a roadmap of the priority actions you could take to improve your RITE score and your ESG performance.
The tool uses a simple scoring system to provide an evaluation across each stage of our Sustainable Investing Pathway (Beliefs, Policy, Process and Portfolio). RITE helps you assess how effectively you have integrated ESG best practices against each of Mercer’s Sustainable Investing Pathway categories and considers 60 data points across 21 categories. The assessment scores you on a scale of A++ to C. Your sustainable investing score provides you with a benchmark to monitor your improvement over time.
Being a sustainable investor means successfully integrating Environmental, Social and Governance factors into your investment decision making. So knowing how well you’re currently doing is a crucial step - but it is only the first step of three. To effectively become a sustainable investor you also need:
· To know what changes to make to improve your position
· A way of measuring the difference those changes have made
So that’s what our Responsible Investment Total Evaluation (RITE) does.
Drawing on over 15 years of advising on responsible investing
and informed by best practice across the globe
RITE analyses 75 data points across 21 categories to give you the
• INSIGHT – How well you’re doing today.
• INTERVENTIONS – An action plan to improve how you’re doing.
• IMPACT – A measure of the effect that action plan has made.
You need to become a sustainable investor.
RITE leads to well-planned and evidential improvements
and ultimately protecting and enhancing your stakeholder outcomes.
Take control of the sustainability agenda today.
Insight. Interventions. Impact
We seamlessly integrate with your team to help you assess your ESG credentials within your investment portfolios. First, we define your rating, then set a strategy and finally, put a plan in place for ongoing monitoring.
Using our Sustainable Investment Pathway, we assess your portfolio against 60 data points and 21 categories to understand how well you are currently integrating ESG considerations into your investment decision making. Each category will be given a rating from A++ to C. The combined scores will provide an overall rating for your portfolio.
Within each part of the Sustainable Investment Pathway, we provide a list of interventions. These are actions, prioritized in order of importance, that you can take to improve ESG integration and increase your RITE score.
We provide you with a revised score showing the impact of the proposed interventions, highlighting the steps that would have the biggest impact on your score. We can undertake annual assessments to see if the changes are delivering the desired impact.
Change starts with you.
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The purpose of the RITE tool is to assist investor clients to assess how they are positioned in relation to responsible investing, and how, from a list of actions and interventions set out in this report an investor client could improve their rating in respect of their portfolio of assets.
RITE is a point in time evaluation and the score(s) and rating(s) allocated to you provides no guarantee or indication of current or future compliance with any prevailing regulations, guidelines or standards.
This report contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its content (including, any ratings or scores) may not be modified, sold, published, disclosed or otherwise provided, in whole or in part, to any other person or entity.
This report also contains information provided to Mercer by you or on your behalf and is used herein with your consent. Mercer relies on and uses all such information without independently verifying the accuracy or completeness thereof. 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 information provided by you or on your behalf.
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The scores, ratings findings 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. Past performance does not guarantee future results. Mercer’s ratings do not constitute individualised investment advice or advice under the Sustainable Finance Disclosure Regulations or any other regulations.
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