Mercer has launched a new tool to help pension schemes and other institutional investors assess how well they are integrating ESG considerations in their overall decision making.
Its Responsible Investment Total Evaluation (RITE) allows investors to identify areas and implement interventions that can deliver positive impact and make a difference to society and the environment. Progress on activity will be tracked on the tool to provide evidence of better outcomes.
To ensure a robust assessment, Mercer has identified 75 data points across 21 categories built around its Responsible Investment Pathway. The data points are aligned with relevant regulatory guidance and consider the governance, monitoring and reporting of climate change risks and opportunities as well as other ESG factors.
RITE provides institutional investors with performance insights and an objective evaluation of their ESG credentials, including where they sit on an A++ to C scale.
Mercer partner Brian Henderson says: “With trillions of pounds invested by large sophisticated asset owners in the UK, including £2.3 trillion via UK pension schemes, institutional investors have a huge role to play and should be helping to drive the UK’s sustainable investment agenda.
“Being reactive or, worse, doing nothing at all, is no longer acceptable. As a pioneer in the ESG space, having advised thousands of institutional asset owners on responsible investment for over a decade, we want to drive change. We know that in order to move the needle on this issue, the industry has to take a proactive role.
“We are delighted to bring our leading approach to market and with it, support investors and trustees of these schemes on their route to a more sustainable future. It is no longer about talking, but taking firm action and making progress. As a leader in the investment space, we will continue to help investors make the right choices.”
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