NETHERLANDS - PGGM has asked Mercer to find high performing emerging markets equities managers which hold environmental, social and corporate governance (ESG) at the core of their strategies.
The mandate would primarily focus on global emerging markets but the giant Dutch fund may consider regional and single country strategies, according to Mercer.
Marcel Jeucken, head of responsible investment, PGGM, explained: "We believe environmental, social and corporate governance factors will add value to the financial performance of our investments.”
Jeuckan added: “We expect to find compelling opportunities in emerging markets and therefore think it is crucial that managers start developing strategies that place such factors at the core of their investment strategies. This is why we are conducting a wide search on existing and new products in this area.”
Emma Hunt, European leader of responsible investing, Mercer, said as far as the company was aware, this was the first emerging markets mandate with ESG factors explicitly required.
Hunt added: “The academic and empirical evidence linking environmental, social and corporate governance factors to investment performance is growing rapidly.
“The nature of these linkages is being better understood, better quality data and analysis is now being produced, and investment managers are starting to evolve their investment processes and strategies to reflect this,” she added.
PGGM was one of the founding signatories of the UN Principles of Responsible Investment (UNPRI) the members of which now manage over US$1trn.
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