Mercer ESG Rating Scale

All our Managers ESG credentials are assessed. ESG ratings are undertaken by Mercer’s global manager research team. They are on a scale from 1 (highest) to 4 (lowest) and access how well managers integrate ESG factors into their investment processed.

Active Strategies
Stars
ESG 1
ESG integrated into investment philosophy; active ownership a core part of process.
Stars
ESG 2
Consistent and repeatable process to ESG integration (focus on risk management); strong evidence of active ownership.
Stars
ESG 3
Ad-hoc process to ESG integration and active ownership, but indications or progress.
Stars
ESG 4
Little or no integration of ESG factors or active ownership into core processes and no indication of future change.
Passive Strategies (equities)
Stars
ESGp1
Leaders in voting and engagement across ESG topics, with active ownership activities and ESG initiatives undertaken consistently at a global level.
Stars
ESGp1
Strong approach to voting and engagement across ESG topics, and intiatives at a regional level, with progress made at a global level.
Stars
ESGp3
Focus on voting and engagement tends to be on governance topics only, or more regionally focused with less evidence of other internal ESG initiatives.
Stars
ESGp4
Little or no initiatives on developing voting and engagement capability – little progress made on other ESG initiatives.
Sign up for the latest
Subscribe to our newsletter to receive the latest investment news & views.