Environmental, social & governance policies

Responsible Investment

Considering your investments from a responsible perspective offers a different point of view, one that’s more likely to create and preserve long-term value. This is one Mercer’s five investment beliefs. It ensures the viability and sustainability of value, not just over the next five or ten years, but over the next 20, 30 or 50 years.

Sustainability principles are built into our investment portfolios to protect and enhance the value of the investments. We look beyond traditional financial factors and consider the potential investment impacts of corporate governance, as well as environmental and social (ESG) issues – such as an ageing population, energy and resource constraints, and climate change.

The investment managers appointed to the Mercer Investment Trusts are encouraged to consider ESG factors in assessing investment risk and opportunities, as relevant to the type of investment.

We believe principles of active ownership and investment stewardship are of value in the investment process. For detail on Mercer’s stewardship activities please see Mercer’s proxy voting webpage.

Ethical Exclusions

We also look to exclude those investments we believe cause substantial and irreparable harm to society or the environment.

For more detail see the Mercer Funds Responsible Investment Policy and Climate Change Management Reporting. This policy has been developed with input from Mercer’s team of Responsible Investment specialists. Learn more about our Responsible Investment specialists and our ESG Ratings.


Socially Responsible Investment (SRI) Fund enhanced exclusions option

Each of our Diversified Funds (Conservative to High Growth) provides members the option of choosing a Socially Responsible Investment (SRI) version. In addition to our standard exclusions of tobacco, controversial and nuclear weapon stocks, these funds exclude alcohol, adult entertainment, gambling, and carbon intensive coal. They also measure portfolio carbon emissions and incorporate an allocation to impact investing.

Socially Responsible Investment (SRI) Fund – Screening policy


Socially Responsible Investment (SRI) Fund – Impact investing

35% of the Global Equities allocation is directed to fund managers investing to make a positive social impact as well as generate strong market returns. Investments are focused in the following areas:


Socially Responsible Investment (SRI) Fund - impact investing examples

The following are examples of the key performance indicators of one of the fund managers within the SRI fund: