*This article was edited on 21 December to update the figure for the fund's assets under management.

Mercer Private Investment Partners (PIP) VII Global Impact is a global fund covering a broad spectrum of private market asset classes. It intends to contribute to the limitation of adverse impacts on the climate and associated environmental challenges and a more inclusive and equitable society by generating "demonstrable positive impact" across Mercer’s impact themes.

As a Sustainable Finance Disclosure Regulation (SFDR) Article 8 product, the fund is driven by ESG principles and also opts to adhere to the ‘do no significant harm/minimum safeguard’ test.

The fund, which manages assets of $431 million*, has attracted investment from corporate and public pension funds, insurance companies, endowments, and foundations. Its holdings are focused on cleantech, impact, renewable energy, and agriculture.

Mercer has developed a three-step process for the vehicle, which is says begins with a deep dive into how a manager’s intentions align with its strategy, impact mapping using the UN Environment Programme Finance Initiative’s Impact Radar Tool, followed by an “engagement and regulatory compliance” verification.

Looking forward, Mercer is encouraging its asset manager partners to incorporate biodiversity considerations into their investment processes and advocating for the measurement and assessment of both positive and negative impacts on biodiversity.

“We’re delighted to be recognised by Environmental Finance as the Multi-Asset fund of the year. Our solution invests capital by targeting attractive financial outcomes alongside tangible impact, with social and environmental welfare as hallmarks of our success,” Garvan McCarthy, Mercer's chief investment officer for EMEA and Asia, said.

“We are proud of our position as a thought leader in sustainable investing and utilising this heritage alongside our global proprietary manager research and implementation capabilities.”

One of the IMPACT Awards judges applauded Mercer’s “in-house expertise” in particular.

Important information - The Mercer PIP VII Global Impact Fund is an Article 8 fund under SDFR regulations. A fund with an Article 8 classification promotes environmental or social characteristics but does not have this as its overarching objective. The fund can invest in assets that would not be classified as “sustainable” investments”. This fund is now closed to new investors.

*Source: Mercer as at 15 December, 2023. Final closing is expected on 31 January, 2024.