Mercer announced today that its proprietary environmental, social and governance (ESG) ratings will be included in client reports related to manager searches and performance. This inclusion reflects Mercer’s view as to the importance of ESG factors for long-term investors and increased client interest in ESG issues. A global leader in responsible investment consulting, Mercer assigns ESG ratings across investment styles, asset classes and geographies as part of its manager research process.
“ESG factors have the potential to become more important risk-return drivers for our clients,” said Andrew Kirton, Mercer’s Global Chief Investment Officer. “A growing number of institutional investors are expressing an interest in ESG assessments; however, relatively few managers integrate these factors into their investment processes. Incorporating ESG as a key aspect of the search process will promote constructive dialogue with managers on ESG related issues and result in better overall outcomes.”
“The list of UN PRI1 signatories continues to climb, yet only 9% of the more than 5,000 investment strategies we have rated achieve our highest ESG scores,” said Jane Ambachtsheer, Mercer’s Global Head of Responsible Investment. “By including ESG ratings in our most frequent deliverables, we are further enhancing Mercer’s due diligence and our clients’ ability to include ESG and active ownership considerations in the selection and monitoring of managers.”
Mercer will implement the new ESG reporting process globally by the end of 2012.
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