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 will be hosting 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 will debate and discuss client actions, opportunities and challenges to investing for net zero pathways. If you’re attending in-person, we encourage you to register and join in the conversation. You don’t need to have an accreditation to attend.
|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?”
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.
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 organizations 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.
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.