GLOBAL - Mercer has announced it will now place greater emphasis on the extent to which fund managers pro-actively integrate environmental, social and governance factors (ESG) into their mainstream investment process.
Mercer's existing ESG research process has been expanded to rate all managers on their ESG capabilities at strategy level. Going forward, ESG questions will be asked of every manager in the Mercer database and included on every research meeting agenda. The manager research team will indicate where managers incorporate ESG and recommend where further ESG research is justified.
"In the past, it was just a small group of organisations that were interested in active ownership and environmental, social and governance analysis. However, there are a growing number of mainstream investors who believe these issues can have an impact on long-term investment performance," said Tim Gardener, global chief investment strategist at Mercer.
Dr. Danyelle Guyatt, principal in Mercer's responsible investment team, said: "For Mercer to take this step sends a clear signal to managers and owners alike. Not only do we believe that environmental, social and governance factors are important, but our clients, some of the largest asset owners in the world, do too."
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