The strategy, which will adopt a mandate of $125m (€112.7m), seeks to deliver sustainable, above market returns over the long term.
It invests in companies that are developing innovative solutions to resource challenges in four key areas: energy; water; waste & resource recovery; and sustainable food, agriculture & forestry.
Companies are selected if they generate more than 20% of their sales revenue from environmental products or services and the strategy is distributed globally, excluding North America, Impax said.
Transition offers opportunities
Ian Simm, chief executive of Impax, commented: “The transition to a more sustainable global economy is already creating vast economic benefits.”
Impax is a UK specialist asset manager with approximately £15.1bn (€17.5bn) in AUM and offers a range of listed equity, fixed income, smart beta and real asset strategies.
Its specialist expertise is built on investing in the opportunities arising from the transition to a more sustainable global economy.
It believes that global sustainability challenges, including climate change, pollution and essential investments in human capital, infrastructure and resource efficiency will drive growth for well-positioned companies and create risks for those unwilling to adapt.
Mercer is an institutional investment advisor which has $12trn of assets under advisement and $282bn of delegated assets under management.