Adopting an impact investing approach
Driving real-world outcomes with impact investing
The World Economic Forum’s Global Risks Report, developed in collaboration with MarshMcLennan, provides an annual reminder of the fundamental interconnections and challenges between economic systems and the world’s troubled natural ecosystems.
More investors are opting to go beyond ESG considerations to support positive change through impact investing. Impact investors connect the pursuit of risk-adjusted returns with the delivery of positive real-world outcomes, often connected to the United Nations Sustainable Development Goals (SDGs). Each SDG provides a range of impact investment targets. For example, climate action is a key target one that motivates allocations to renewable energy or green buildings.
Impact investing targets underserved areas of the global economy. For example, it aims to help meet the needs of the “bottom billion,” and addresses critical global problems such as climate change.
Creating an optimal and diversified strategy can be challenging, but it is not impossible. We can work with you to identify themes, source and integrate opportunities into your portfolio, and report on and monitor your progress.
Defining your impact investing approach
There are a number of approaches to sustainable investment, including ESG integration and screening, thematic investing and impact investing. Impact investing starts where ESG ends and spans opportunities that deliver varying market rate returns.
Some investors are willing to lower their expected levels of return to focus on impact in a particular area. However, we believe that when executed well, impact investing can generate a positive social or environmental impact in addition to delivering the return potential you are pursing.
We can help you review your objectives against your investment goals, defining an optimal strategy that balances your ESG ambitions with returns.
Spectrum of impact ambition
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Investing with intent - Impact investment in private markets
Considerations for impact investing
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Define your ambition and themesWe can help you determine where you want to make a real impact and define what that could look like for your portfolio.
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Accessing managersWe have strong relationships with hundreds of managers around the world and can help you identify those with the right skill sets and opportunities to make a real impact.
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Finding the right balanceWe can help you assess and find an optimal balance between generating financial returns and delivering an ESG impact, without sacrificing on either, when possible.
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Reporting on progressWe can help you monitor and report on your progress. This will set you apart from any organizations that appear to be “greenwashing.”
Raising your impact ambition
It's all here: MercerInsight® Community
How we help clients with impact investing
Tools to help guide your impact investing strategy
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Gain access to our proprietary research
You can leverage our manager research on MercerInsight® and access our strategic research via the MercerInsight® Community. Our research helps you identify opportunities across traditional and emerging asset classes in both public and private markets. -
Get some advice from our global specialists
Our advisory team can guide the development of your impact investing approach, seamlessly calibrating it to fulfill your aspirations. They can also provide advice on the execution of an investment plan to help you achieve your ESG and financial ambitions. -
Implement a solution to do the hard work for you
You can delegate your investments to us, or we can work with you to create a bespoke investment solution that combines your desired level of impact, risk and financial return. We flex our services to your requirements.
