Mercer Launches Solution for Investors to Construct Climate Resilient Portfolios
Professional services and consulting firm Mercer announced today the launch of Analytics for Climate Transition (ACT), a new analytics and advice solution designed for institutional investors who want to transition to a 1.5°C climate scenario. ACT aims to help prepare and construct institutional portfolios to adapt to a net zero economy.
Helga Birgden, Global Business Leader, Responsible Investment, Mercer, said:
“Many investors are not yet equipped to invest in a decarbonising economy, and some don’t know where to start. Our analytics and advice will help investors transition their portfolios to take on the challenges of managing climate risk, in their endeavor to meet return objectives while staying on target for a net zero outcome.”
According to Mercer, transitioning to a 1.5°C scenario of global warming as outlined in the Paris Agreement will require dramatic reductions in emissions, on the order of 45%, by 2030. ACT was developed to enable institutional investors to assess the companies they are invested in with respect to their commitment and ability to, transition to a net zero economy by 2050, including the 2030 emission reduction milestone. The new solution will help investors set portfolio investment baselines; assess portfolio opportunities; establish targets and produce implementation plans that can be integrated with strategy and portfolio construction decisions.
Kate Brett, Head of Responsible Investment – Europe, Mercer, said:
“As investors increasingly seek to set net zero targets and align their portfolios to a 1.5°C global warming outcome, it is vital that they are equipped with the necessary tools and analysis to do so. The analytics and advice builds on Mercer’s pioneering climate scenario analysis and aims to support investors in setting net zero targets, outlining a pathway to net zero and measuring their progress as the transition progresses.”
Mercer stated that ACT is now being offered to investment consulting clients worldwide and will be leveraged to support climate transition strategies across its $304.5 billion global assets under management on behalf of its Investment Solutions clients.