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Mercy Investment Services, Inc.

PRI reporting framework 2020

You are in Indirect – Manager Selection, Appointment and Monitoring » Outputs and outcomes

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories (Private)


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          Establish an allocation to water strategy within the equity portfolio
        
Conducted by
Asset class
Scope and process

Mercy Investment Services' concerns related to issues with the quantity, quality, and allocation of water led to discussions with its consultant regarding long-term sustainability trends, potential impact, and a differentiated investment opportunity.

Outcomes

Researched, completed due diligence and approved a new equity strategy that incorporates ESG factors and invests in companies whose innovative technologies and products will help provide solutions to global water challenges by: 1) increasing supply and access, 2) decreasing demand and waste, 3) improving and assuring quality, and 4) building and repairing infrastructure. 

Topic or issue
          Increase environmental impact investments
        
Conducted by
Asset class
Scope and process

Mercy Investment Services continues to work with its consultants to make additional commitments to the Environmental Solutions Fund within its private equity portfolio.

Outcomes

In both 2018 and 2019, researched, completed due diligence and approved commitments to five mission-related, positive market-rate alternative investment projects focused on renewable energy, energy and water efficiency, materials recycling, green buildings, sustainable agriculture and sustainable forestry. Several examples include developmental-stage renewable energy projects (wind, solar & hydroelectric) focused in India, Indonesia and the Philippines; renewable energy investments in Nigeria that replace existing diesel-generated electricity with solar panels and cleaner, more efficient backup generation systems; utility-scale European renewable energy projects (wind, solar & hydroelectric); clean and renewable power generation and energy infrastructure projects in late stages of development in the United States; early-stage companies that focus on the application layer of clean energy that sits on top of the physical infrastructure; and sustainable food and agriculture companies concentrating on environmental protection and resource deprivation, health/wellness and access to food. 

Topic or issue
          Achieve additional reductions of carbon emissions within the equity portfolio
        
Conducted by
Asset class
Scope and process

Performed second Portfolio Carbon Footprint of the Global Equity Portfolio with Trucost; the research indicated that the percent reduction of Mercy Investment Services' carbon footprint (versus the MSCI ACWI) improved from 2016 to 2018 due to managers' additional integration of environmental considerations into investment selection. 

Outcomes

Following the Trucost report issuance, worked with investment manager to further reduce the carbon exposure of the R1000 and EAFE passive portfolios (relative to the indices).

09.2. Additional information.

Made several catalytic commitments through Mercy Partnership Fund (inclusive finance) to provide concessionary capital to improve water services in underserved communities in El Salvador; to help Catholic organizations identify, finance and implement energy efficiency and renewable energy projects; and to invest in off-grid solar energy and financial access companies to increase access to affordable, clean energy for base-of-the-pyramid beneficiaries in Africa and South Asia. 


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