Mercer assigns ESG ratings across investment styles, asset classes and geographies as part of its manager research process. The company plans to implement the new ESG reporting process globally by the end of this year.
“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.”