|of investors in Europe now consider ESG related risks during the investment process, up from 55% in 2019*|
Investors are increasingly considering climate change along with issues related to environmental, social and corporate governance (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 funds1 as part of our global investment roadmap. We expect to reduce absolute portfolio carbon emissions by 45% from 2019 baseline levels by 20302.
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 responsible investing broadly applies to everyone, different regions and sectors may be taking a different approach. Talk to our experts 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 responsible 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 responsible 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 Responsible 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 responsible 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.
Amarik oversees clients’ sourcing, due diligence, monitoring of infrastructure investment opportunities and construction of infrastructure portfolios. Amarik works with some of the world’s largest and most sophisticated institutional investors on an advisory basis, assisting them with portfolio construction, the analysis of co-investment opportunities, and the establishment of bespoke mandates.
References to Mercer shall be construed to include Mercer LLC and/or its associated companies.
© 2020 Mercer LLC. All rights reserved.
This information is for sophisticated investors only who are accredited investors or qualified purchasers. Funds of private capital funds are speculative and involve a high degree of risk. Private capital fund managers have total authority over the private capital funds. The use of a single advisor applying similar strategies could mean lack of diversification and, consequentially, higher risk. Funds of private capital funds are not liquid and require investors to commit to funding capital calls over a period of several years; any default on a capital call may result in substantial penalties and/or legal action. An investor could lose all or a substantial amount of his or her investment. There are restrictions on transferring interests in private capital funds. Funds of private capital funds’ fees and expenses may offset private capital funds’ profits. Funds of private capital funds are not required to provide periodic pricing or valuation information to investors. Funds of private capital funds may involve complex tax structures and delays in distributing important tax information. Funds of private capital funds are not subject to the same regulatory requirements as mutual funds. Fund offering may only be made through a Private Placement Memorandum (PPM).
This 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 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.
For Mercer’s conflict of interest disclosures, contact your Mercer representative or see http://www.mercer.com/conflictsofinterest.
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.
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.
Not all services mentioned are available in all jurisdictions. Please contact your Mercer representative for more information.
Certain regulated services in Europe are provided by Mercer Global Investments Europe Limited and Mercer Limited.
Mercer Global Investments Europe Limited and Mercer Limited are regulated by the Central Bank of Ireland under the European Union (Markets in Financial Instruments) Regulation 2017, as an investment firm. Registered officer: Charlotte House, Charlemont Street, Dublin 2, Ireland. Registered in Ireland No. 416688. Directors: Sylvia Cronin, Michael Dempsey, Tom Geraghty, Abhishek Krishan, Deborah Mintern, Bruce Rigby (British) and Vincent Sheridan. Mercer Limited is authorized and regulated by the Financial Conduct Authority. Registered in England and Wales No. 984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.
Investment management services for Canadian investors are provided by Mercer Global Investments Canada Limited. Investment consulting services for Canadian investors are provided by Mercer (Canada) Limited.
Investment management and advisory services for U.S. clients are provided by Mercer Investments LLC (Mercer Investments). Mercer Investments LLC is registered to do business as “Mercer Investment Advisers LLC” in the following states: Arizona, California, Florida, Illinois, Kentucky, New Jersey, North Carolina, Oklahoma, Pennsylvania, Texas, and West Virginia; as “Mercer Investments LLC (Delaware)” in Georgia; as “Mercer Investments LLC of Delaware” in Louisiana; and “Mercer Investments LLC, a limited liability company of Delaware” in Oregon. Mercer Investments LLC is a federally registered investment adviser under the Investment Advisers Act of 1940, as amended. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Mercer Investments’ Form ADV Part 2A & 2B can be obtained by written request directed to: Compliance Department, Mercer Investments, 99 High Street, Boston, MA 02110.