GLOBAL - Mercer has launched a 'carbon footprint' analysis for institutional investors' portfolios, which can be compared to a chosen benchmark such as the FTSE All-Share, S&P 500 or Russell 1000.
The company also said an increasing number of institutional investors had expressed an interest in assessing and better managing the risks and opportunities associated with the impact of their investments on the environment and climate change.
Danyelle Guyatt, principal at Mercer, said: "Acting as an indicator, the carbon footprint and additional analysis will enable our team to work with clients to 'green' their portfolios.
"In addition, providing this type of information to clients will better equip them to raise climate change issues with their investment managers in a way that is systematic and comparable across managers."
Mercer said it would develop carbon footprint analyses via use of the Style Research Portfolio Analyzer (SRPA) tool that could integrate relevant information from Trucost, an environmental data provider.
Neil McIndoe, head of environmental finance, Trucost, said: "Trustees can encourage fund managers to use carbon footprints to help identify and manage carbon risks and opportunities in existing portfolios, as well as to create carbon-efficient investment products."
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