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Mercer (Service Provider)

Service Providers Framework 2020

You are in Investment Consultancy » Investment research

Investment research

IC 10. Investment research activities

10.1. Indicate whether you incorporate ESG into your investment research services.

10.2. Indicate whether the following activities are part of your investment research process. Describe for each activity how you incorporate ESG.

Investment research activities

Describe how you incorporate ESG

          Asset level research would include particular trends and themes, with the most obvious example being sustainability themed opportunities in different asset classes. The below papers are examples of this sort of work.    
- Assessing the prospective investment impacts of a low carbon economic transition (see: 
- Exploring the environmental risks within real assets (real estate, infrastructure and natural resources sector).  (see:
- An introduction to low carbon and fossil free passive equity. (see:
- Responsible Investment in Fixed Income (

Describe how you incorporate ESG

          Assuming this is referring to total portfolio approaches, building on asset level research, we incorporate sustainability themed allocations in our reference portfolios and model climate change impacts with our scenario analysis tool, which sits within our strategic asset allocation modelling. 

For clients that want to align their portfolio with specific organizational values, we incorporate these restrictions into portfolio asset allocation recommendations and asset allocation review processes. These are bespoke in nature, and range the ESG spectrum, including environmental (ex. fossil fuel), social (ex. tobacco), and governance-related (ex. corporate gender equality).

Describe how you incorporate ESG

          In 2018,  Mercer and the Inter-American Development Bank (IDB) issued Crossing the Bridge to Sustainable Infrastructure Investing, a report that focuses on the imperative for sustainable infrastructure (SI) in Latin America and the Caribbean and around the world. 

Investment in infrastructure is widely recognized as crucial to promoting economic and social growth through the development of essential services and assets. As the global population grows and urbanizes, the demand for infrastructure grows with it.

Describe how you incorporate ESG

          One recent thought piece in this area would be the recently published  "A guide to RI indices paper"  (

Describe how you incorporate ESG

          In 2018,  we updated our white paper, The ABCs of ESG, which  gives an introduction to ESG and aims to provide an education on responsible investment approaches, regulatory direction of travel and fiduciary duty, relationship between responsible investment and performance and potential action plans for investors.

Describe how you incorporate ESG

          As an example, we produced a paper in 2019 entitled “How Low Can You Go? An Introduction to Low Carbon and Fossil Free Passive Equity”.

10.4. Additional information. [OPTIONAL]

IC 11. Demonstrating value on investment research

11.1. Describe how you measure, track or otherwise demonstrate your value on investment research activities.

          Mercer conducts regular analysis of our own investment research performance, using our own comprehensive dataset, to illustrate to our clients the value we add.  Mercer’s “Measurement of Value Added Through Mercer’s Manager Research Recommendations” analysis illustrates Mercer’s ability, across a wide range of asset classes, to identify investment products that outperform their relevant benchmarks.

11.2. Additional information. [OPTIONAL]