There is more to investing sustainably than just divesting or excluding certain assets from a portfolio. For example, through engagement, investors can help companies tackle a range of measures that could help improve their long-term performance. Additionally, by understanding how the world is changing, investors can position their portfolios to target opportunities that may emerge. To encapsulate all these changes we see around us – and how investors can be part of it, we launched our Sustainable Investment Declaration, and invite you to find out more about our approach.
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.
Congratulations to Environmental Finance for their most recent Sustainable Investment Awards2 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.
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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