Responsible Investment Policies

Sustainability Policy:

This Policy sets out Mercer’s key principles and approach in relation to all sustainability related topics.

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Remuneration Policy:

This Policy set out how ESG performance is rewarded within Mercer.

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Sustainability related disclosures

Principal Adverse sustainability impacts statement:

This statement summarises how principal adverse impacts on sustainability factors are considered as part of the investment decision making & advisory process.

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Sustainability-related product disclosures:

Mercer Aspire offers Article 8 and Article 9 investment options, as categorised by the Sustainable Finance Disclosure Regulation, as follows:

 

 Fund / Portfolio

 Classification

 Aspire Moderate Growth Portfolio

 Article 8

 Aspire Adventurous Portfolio

 Article 8

 Aspire Cautious Growth Portfolio

 Article 8

 Aspire Progressive Portfolio

 Article 8

 Diversified Growth Fund

 Article 8

 Diversified Growth Partial Hedge Fund

 Article 8

 Active Sustainable Equity Fund

 Article 8

 Passive Sustainable Equity Fund

 Article 9

Aspire Moderate Growth Portfolio / Aspire Adventurous Portfolio / Aspire Cautious Growth Portfolio / Aspire Progressive Portfolio / Diversified Growth Fund / Diversified Growth Partial Hedge Fund

These Portfolios / Funds seek to promote environmental and social characteristics within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation. They invest in a diversified mix of sub-funds, the majority of which have a stated objective to seek to mitigate the impact of climate change through progressive decarbonisation within their portfolio (as set out in the table below). These sub-funds will seek to reduce carbon emissions with a view to achieving net zero carbon emissions by 2050, and with a view to achieving at least a 45% reduction from 2019 levels by 2030. A proprietary tool is used to measure the decarbonisation strategy for the sub-funds including metrics such as carbon emissions intensity, absolute carbon emissions and fossil fuel reserves. In addition, the sub-funds have exposure to sustainable investments.

 

 Fund / Portfolio

 Strategic Asset allocation to Article 8 sub-funds as at 10 March 2021

 Aspire Moderate Growth Portfolio

 90%

 Aspire Adventurous Portfolio

 90%

 Aspire Cautious Growth Portfolio

 65%

 Aspire Progressive Portfolio

 65%

 Diversified Growth Fund

 100%

 Diversified Growth Partial Hedge Fund

 100%

 

Active Sustainable Equity Fund

The Fund seeks to promote environmental and social characteristics within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation. The investment managers selected for this Fund are limited to those strategies that have received the highest and second highest ESG ratings from Mercer’s global manager research team i.e. strategies considered best-in-class, which are responsive to ESG risks as well as opportunities, and those with strong stewardship processes.  The Fund seeks to combine strategies that embed environmental and/or social considerations in their investment processes while also adhering to good governance standards. 

 

Passive Sustainable Equity Fund

The Fund has sustainable investment, namely, a reduction in carbon emissions, as its objective within the meaning of Article 9 of the Sustainable Finance Disclosure Regulation. The Fund is passively managed and seeks to achieve its objective by investing predominantly in global equities that as far as possible reflect the component equity securities of the selected sustainable equity index. The Index enhances exposure to positive ESG factors and seeks to provide low carbon emission exposure with a view to achieving the long term global warming objectives of the Paris Agreement.

 

Mercer Aspire

Overall, approximately two thirds of assets invested under Mercer Aspire are invested in funds which seek to promote environmental and social characteristics within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation as at 10 March 2021. As such, Mercer Aspire is categorised as a financial product which seek to promote environmental and social characteristics within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation.