At Mercer, we define responsible investment (RI) as an investment approach that includes environmental, social and corporate governance (ESG) factors and broader systemic issues — for example, climate change and sustainable development — along with active ownership (stewardship). These considerations can have a material impact on financial performance, and their inclusion is more likely to lead to sustainable investment outcomes in the future.
There are many ways in which institutional investors approach RI and applicable ethical considerations — aiming to balance the risk/return requirements for investors (particularly those with fiduciary duties) and reputational considerations with the needs of beneficiaries and other stakeholders.
The following main approaches that can be implemented
individually or in combination. The majority of investors employing a comprehensive RI program would have elements of most if not all of these.
Mercer can help you to evaluate and implement a successful ESG strategy.
For further information, visit https://www.mercer.com/our-thinking/wealth/responsible-investment.html or contact your local Mercer representative.