Adopting an impact investing approach

We build robust impact investment strategies that seek to deliver positive change and strong returns. We can help you choose your impact themes, design a portfolio and measure your impact in line with your sustainability goals. We can support you in taking an innovative approach to impact investment, helping you uncover fresh ideas across the spectrum of asset classes.

Driving real-world outcomes with impact investing

The World Economic Forum’s Global Risks Report, developed in collaboration with MarshMcLennan, provides an annual reminder of the fundamental interconnections and challenges between economic systems and the world’s troubled natural ecosystems.

More investors are opting to go beyond ESG considerations to support positive change through impact investing. Impact investors connect the pursuit of risk-adjusted returns with the delivery of positive real-world outcomes, often connected to the United Nations Sustainable Development Goals (SDGs). Each SDG provides a range of impact investment targets. For example, climate action is a key target one that motivates allocations to renewable energy or green buildings.

Impact investing targets underserved areas of the global economy. For example, it aims to help meet the needs of the “bottom billion,” and addresses critical global problems such as climate change.

Creating an optimal and diversified strategy can be challenging, but it is not impossible. We can work with you to identify themes, source and integrate opportunities into your portfolio, and report on and monitor your progress.

Defining your impact investing approach

There are a number of approaches to sustainable investment, including ESG integration and screening, thematic investing and impact investing. Impact investing starts where ESG ends and spans opportunities that deliver varying market rate returns.

Some investors are willing to lower their expected levels of return to focus on impact in a particular area. However, we believe that when executed well, impact investing can generate a positive social or environmental impact in addition to delivering the return potential you are pursing.

We can help you review your objectives against your investment goals, defining an optimal strategy that balances your ESG ambitions with returns.

Spectrum of impact ambition

This chart shows that there are three stages across the impact investing spectrum. Stage one is for investors who want to behave responsibly, stage two is for investors who want to generate long-term returns from sustainable opportunities and stage three is for investors who want to make a larger scale impact whilst generating a return - for example, increasing access to affordable housing.

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Considerations for impact investing

We outline four critical areas to focus on when considering impact investing. We can help you define an optimal approach that addresses each of the following key considerations:
  1. Define your ambition and themes
    We can help you determine where you want to make a real impact and define what that could look like for your portfolio.
  2. Accessing managers
    We have strong relationships with hundreds of managers around the world and can help you identify those with the right skill sets and opportunities to make a real impact.
  3. Finding the right balance
    We can help you assess and find an optimal balance between generating financial returns and delivering an ESG impact, without sacrificing on either, when possible.
  4. Reporting on progress
    We can help you monitor and report on your progress. This will set you apart from any organizations that appear to be “greenwashing.”
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Raising your impact ambition

Learn more about the path to impact through two case studies in this report, which covers the work of an illiquid private equity and a liquid globally listed equity firm.
Download this report

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How we help clients with impact investing

We have the global scale, extensive manager research and breadth of experience. This allows us to help you identify themes, source and integrate opportunities into your portfolio, and report and monitor your progress. We can flex our services to work in a way that suits you, whether you simply want our advice or you want us to work on your behalf through our investment solutions platform.

Tools to help guide your impact investing strategy

  • Gain access to our proprietary research

    You can leverage our manager research on MercerInsight® and access our strategic research via the MercerInsight® Community. Our research helps you identify opportunities across traditional and emerging asset classes in both public and private markets.

  • Get some advice from our global specialists

    Our consulting team can guide the development of your impact investing approach, seamlessly calibrating it to fulfill your aspirations. They can also provide consulting advice on the execution of an investment plan to help you achieve your ESG and financial ambitions.

  • Implement a solution to do the hard work for you

    You can delegate your investments to us, or we can work with you to create a bespoke investment solution that combines your desired level of impact, risk and financial return. We flex our services to your requirements.

Impact investing through private markets

Impact investing in private markets is a rapidly growing subset of the sustainable investments universe. By aligning your portfolio with efforts to address pressing global issues, you can use your investments as an intentional, powerful tool for positive change.
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Contact our impact investing specialists today

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