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
ESG 1
ESG integrated into investment philosophy; active ownership a core part of process.
ESG 2
Consistent and repeatable process to ESG integration (focus on risk management); strong evidence of active ownership.
ESG 3
Ad-hoc process to ESG integration and active ownership, but indications or progress.
ESG 4
Little or no integration of ESG factors or active ownership into core processes and no indication of future change.
Passive Strategies (equities)
ESGp1
Leaders in voting and engagement across ESG topics, with active ownership activities and ESG initiatives undertaken consistently at a global level.
ESGp1
Strong approach to voting and engagement across ESG topics, and intiatives at a regional level, with progress made at a global level.
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.
ESGp4
Little or no initiatives on developing voting and engagement capability – little progress made on other ESG initiatives.