Mercer launches Stewardship Service across Europe
Consultant Mercer has launched a new Stewardship Service for institutional investors incorporating the UK Stewardship Code, the EFAMA Code for External Governance, and the Eumedion Best Practices for Engaged Share-Ownership.
The service gives investors a tool to check if asset managers are compliant with the codes, and a way to benchmark investors’ own investment policies against the principles of the codes.
Mercer said the development of the service came about because of growing concerns that environmental, social and governance (ESG) issues can affect short and long-term performance of institutional investment portfolios.
Will Oulton, Mercer’s head of Responsible Investment for Europe, said: “Our Stewardship Service aims to make it simple for trustees to understand and define their stewardship responsibilities and to provide them with easy-to-use tools to assist in the selection and ongoing monitoring of their asset managers.”
The UK Stewardship Code makes it a mandatory requirement for FSA-regulated asset managers to disclose to what extent they comply with the code. It is based on seven key principles.
The EFAMA (The European Fund and Asset Management Association) Code for External Governance is a best practice framework for European asset managers engaging with investee companies. It is based on six key principles.
The Eumedion Best Practices for Engaged Share-Ownership was introduced to the Dutch market this year. It is based on ten principles with a focus on stewardship activities with Dutch companies.