Mercer has been appointed by the International Finance Corporation (IFC), the private sector branch of the World Bank Group, to undertake in-depth research into the integration of environmental, social, and corporate governance (ESG) factors in emerging market investments.
Mercer will survey fund managers operating in emerging markets to identify and highlight those that integrate ESG factors in their investment processes.
Mercer head of responsible investment for Asia Pacific Helga Birgden said: “The survey will enable Mercer to integrate ESG analysis within fundamental manager research, sending a message to the market that this integration is both important and relevant.”
According to Birgden, the research aims to facilitate investments in sustainability-conscious emerging market funds and to signal to fund managers the growing worldwide demand for sustainable investment products.
Cecilia Bjerborn, IFC project manager said: “While investments in emerging markets are surging, so is the demand for fund managers capable of integrating ESG factors into their emerging market investments. However, an Economist Intelligence Unit study commissioned by IFC shows that 65 per cent of asset owners are not able to find such investment managers.
“We expect that this survey will provide asset owners with a greater understanding of the trends and competitive forces around ESG factors in emerging markets. We are very pleased to be working with Mercer, a proven leader in responsible investment,” she said.
The project will run for approximately 12 months and will undertake a global survey of equity managers operating in emerging markets, including those based in developed countries, to review their approaches to ESG factors.
