Sustainability at Mercia

Creating long-term value with purpose

At Mercia, sustainability is more than a reporting obligation, it’s fundamental to how we deliver long-term value for our investors, our portfolio companies and the communities we serve. As a committed UK-focused asset manager, we embed responsible investment principles throughout our investment lifecycle, underpinned by accountability, active stewardship and transparent reporting.

Mercia's sustainability strategy

Head of Institutional Distribution, Dean Heaney, and Sustainability Manager, Bansi Dhillon chat about Mercia’s sustainability strategy, measurement frameworks and how Mercia implements these approaches across all of the different asset classes.

A responsible approach across every investment

We apply a consistent ESG due diligence framework across all of our asset classes, using Sustainability Accounting Standards Board-aligned materiality assessments to identify the most relevant risks and opportunities for each investment. Every Investment Committee paper addresses these ESG factors and how they align with Mercia’s guiding principles, which in turn map to the UN Sustainable Development Goals.

Aligning capital with impact

We believe private capital has a vital role in enabling a just and sustainable future. That’s why:

Investing with purpose

82% of equity investments in FY25 supported the Mercia guiding principles, targeting measurable environmental or social impact.

Driving ESG transparency

We report annually through ESG_VC, contributing to industry-wide transparency in collaboration with the BVCA.

Measuring impact beyond returns

We track KPIs across our portfolio, from carbon emissions and diversity metrics to job creation, to measure real-world outcomes.

Driving growth with sustainability

Sustainability Manager, Bansi Dhillon explains to Head of Institutional Distribution, Dean Heaney, about how Mercia is driving growth and helping to build the businesses of tomorrow, whilst detailing more about carbon credits, biodiversity and natural capital.

Governance you can trust

Mercia adheres to:

  • The 6 UN Principles for Responsible Investment (UN PRI)
  • The Quoted Companies Alliance Corporate Governance Code
  • The Investing in Women Code and Women in Finance Charter

We conduct annual policy reviews and training to ensure our governance and compliance practices remain robust and forward-looking.

A workplace that reflects our values

We promote diversity, equity and inclusion (DEI) within our teams and across our investment decisions. Initiatives like Mercia Spirit support employee volunteering and charitable giving, while our Friday Files bulletin raises awareness of key societal and community issues. Our EV salary sacrifice scheme and annual carbon offsetting demonstrate a practical commitment to sustainability at the organisational level.

Looking ahead: Net Zero and beyond

We are committed to achieving net zero carbon emissions by 2050 and are already reporting annually on GHG emissions, with 100% of emissions currently offset. We recognise this is a journey and continue to evolve our practices to meet the expectations of our investors and the needs of the planet.