Climate Change Data

MMC UK Pension Fund

Climate Impact & Sustainability Data (2019-2020, 2023)

Reporting Period: 2019-2020

Environmental Metrics

Total Carbon Emissions:82,689.8 mtCO2e (2020)
Scope 1 Emissions:19,298.0 mtCO2e (2020)
Scope 2 Emissions:19,260.0 mtCO2e (2020)
Scope 3 Emissions:44,131.8 mtCO2e (2020)

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion
  • Corporate Governance
  • Social Impact
  • Cybersecurity

Environmental Achievements

  • Pledged to be carbon neutral in 2021 through emission reductions and verifiable offsets.
  • Committed to reduce carbon emissions by 15% below 2019 levels by 2025.
  • Opened 20th "smart office" in San Francisco showcasing sustainable practices.
  • Launched an integrated global renewable energy practice for insurance broking and risk advisory services.

Social Achievements

  • Launched "Leading the Change" initiative to combat racism, bigotry, and discrimination.
  • Appointed a Chief Inclusion and Diversity Officer and established a Race Advisory Council.
  • Published Client Engagement Principles to support sustainable development goals.
  • Core engagement score (measuring colleague investment in work) increased by 7% to 82%.

Governance Achievements

  • Expanded the Corporate Responsibility Committee's charter to include oversight of ESG initiatives and renamed it the ESG Committee.
  • Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
  • Appointed 5th consecutive diverse candidate to the Board of Directors.
  • 100% of colleagues certified their commitment to 'The Greater Good' and integrity.

Climate Goals & Targets

Short-term Goals:
  • Reduce carbon emissions by 15% below 2019 levels by 2025.

Environmental Challenges

  • COVID-19 pandemic and its impact on colleagues, clients, and communities.
  • Climate change and its associated physical and transition risks.
  • Systemic racism and inequality.
  • Cybersecurity threats.
Mitigation Strategies
  • Established a $5 million Colleague Support Fund to aid colleagues facing financial hardship.
  • Implemented flexible work arrangements and enhanced support programs for colleagues.
  • Launched initiatives to support communities affected by the pandemic.
  • Developed strategies to manage climate-related risks, including TCFD adoption and client engagement principles.
  • Created a Race Advisory Council and implemented diversity and inclusion initiatives.
  • Strengthened cybersecurity program and provided training to colleagues.

Supply Chain Management

Responsible Procurement
  • Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: CarbonNeutral® (Oliver Wyman)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)
  • Goal 13 (Climate Action)
  • Goal 3 (Good Health and Well-being)
  • Goal 17 (Partnerships for the Goals)

The company's work aligns with these SDGs through various initiatives detailed in the report.

Sustainable Products & Innovation

  • Renewable energy practice
  • Smart office initiatives

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • 38% reduction in carbon intensity in the Mercer Growth Fund (vs 2019)
  • 37% reduction in carbon intensity across Legacy Sections' Buy and Maintain Investment Grade Credit mandates (vs 2021)
  • 38% reduction in carbon intensity in the JLT Section's Diversified Growth Fund (vs 2019)

Social Achievements

  • Published its first Sustainable Investment Policy

Governance Achievements

  • Updated Terms of Reference for the Investment Committee to include oversight of ESG integration and reporting
  • Provided various training sessions covering climate-related investment risks and TCFD reporting requirements

Climate Goals & Targets

Long-term Goals:
  • Marsh McLennan's commitment to net-zero across its core operations by 2050, with a 50% emissions reduction target by 2030
  • MGIE's ultimate net zero portfolio carbon emissions target by 2050 for the Mercer Diversified Growth Fund
Medium-term Goals:
  • Reduce carbon intensity in the Mercer Growth Fund by at least 45% from 2019 baseline levels by 2030
  • Reduce carbon intensity across the Buy and Maintain Investment Grade Credit mandates in aggregate by at least 40% by 2030
  • Reduce the carbon intensity of the Diversified Growth Fund allocation by at least 45% from 2019 baseline levels by 2030
Short-term Goals:
  • Review Trustee targets to ensure they remain appropriate

Environmental Challenges

  • Limited or unavailable data from illiquid asset managers in the Defined Benefit Section (property, private debt, private equity)
  • Data gaps in climate-related reporting from some public listed companies and emerging market equities
Mitigation Strategies
  • Working with investment managers to increase data quality and availability
  • Using proxy data where full data is unavailable
  • Focusing on high emitters in the portfolio and providing financial support to enable issuers to transition to lower carbon intensity

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Storms, wildfires, droughts, floods, reduced productivity of labor and agriculture, resource scarcity
Transition Risks
  • Policy and legislation changes, market shifts, technology changes, reputational risks
Opportunities
  • Development of low-carbon technologies and nature-based solutions, investments in climate-resilient infrastructure and real estate, investments in energy conservation and resource efficiency

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: EY (third-party evaluator of Mercer)