Mercer has launched a new offering to support the efforts of institutional investors looking to make progress towards net-zero carbon emissions and help them comply with the UN Paris Agreement on climate change.
The firm's new Analytics for Climate Transition (ACT) solution provides research, analytics, and advice to help investors invest more responsibly, and align their portfolios with the goals set out by the agreement, which includes the lofty goal of limiting the global average temperature increase to 1.5 degrees Celsius (2.7 degrees Fahrenheit).
The firm says encouraging investing in national pension plans and endowments are a key driver of carbon emission reduction, which sees money funneled away from gas and oil and into green energy solutions. Their goal is to help institutional investors bring their portfolios to 45 percent emissions reduction by 2030 and net-zero by 2050, both of which would be required to meet the 1.5 degree goal.
"Many investors are not yet equipped to invest in a decarbonizing 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," said Helga Birgden, global business leader, responsible investment, Mercer.
ACT leverages the research, advice, and investment solutions practices in Mercer's investment business, which has more than 1,300 global employees and 181 dedicated research analysts, with a total of $15 trillion in assets under advisement, the company says.
The firm's responsible investment team is setting out to help clients integrate environmental and social factors into how they approach investing. For example, allocating money to impact investments in renewable energy, water, and social housing while identifying sectors or companies that do not support the overall climate change mission.
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