Creating a unifying ESG value proposition across 3 business divisions

The Challenge

Despite being a recognised leader in sustainable investment services, Mercer was struggling to articulate how their Health and Career practice areas connected to Environment, Social and Governance (ESG) principles. Operating across three relatively siloed businesses, they lacked an overarching value proposition that could effectively communicate their ESG capabilities to prospective clients.

An ESG framework helps investors and stakeholders understand how a company manages risks and opportunities related to its environmental footprint, social respoinsibility, and ethical governance practices.

The project objectives were clear:  Arrive at a compelling ESG value proposition covering all three Mercer businesses - Health, Wealth & Career that is articulated in a way that maximises sales to potential customers, while achieving company-wide buy-in from the teams who would be selling it.

Cognosis won the project over several other ESG-specialised consultancies specifically because of our value proposition development expertise and our proven process-driven methodology. 

Our Approach

Over a period of two months, we implemented a comprehensive research and development process to create compelling ESG value propositions that would resonate with clients across Mercer's diverse business portfolio.

Our approach was built around three core methodologies: 

(1) Customer Value Mapping, (2) Competitor Mapping and (3) Value Proposition Articulation Framework

The project took on several interconnected phases:

1.  Deep-dive research

We began with a thorough research audit to understand how Mercer was currently articulating its existing ESG proposition across the three businesses. This mapping exercise revealed inconsistencies and gaps in messaging, as well as untapped synergies between the practice areas.

2.  Client perspective gathering

The critical next phase involved speaking directly to Mercer's clients to understand their ESG needs and how they would naturally articulate value propositions in this space. 

3.  Competitive landscape analysis

We conducted comprehensive competitor mapping to identify white spaces in the market where Mercer could differentiate itself. This analysis revealed opportunities where Mercer's unique combination of Health, Wealth and Career expertise could create competitive advantage in the ESG space.

4.  Value proposition framework application

Using our Value Proposition Articulation Framework, we developed potential strategic directions. This methodology specifies the client's unique selling proposition, identifies which customer needs they fulfil, explains how they will fulfil them, and positions them against competitors - bringing the value proposition map and competitor analysis into compelling, actionable statements.

5.  Collaborative refinement

We held regular sessions with Mercer's main stakeholder to discuss findings, including the value proposition map, while refining draft statements together. The process culminated in a workshop where we presented strategic options and facilitated decision-making.

The project team included Mercer's global ESG team, with the Global Head of ESG as the main stakeholder and the ESG Strategy Lead as day-to-day contact. We also worked closely with sustainability architects (the salespeople) and client account managers who would be selling the propositions.

The Impact

Perhaps surprisingly, given that the specific ask was one unified proposition - Cognosis delivered two compelling ESG value propositions.  We recommended a two-pronged phased approach for good reason and Mercer embraced this strategic thinking as the foundation of their go-to-market strategy.  The outcomes of the project delivered: 

1.  A clear strategic direction with phased implementation - The first part of this approach was to launch a generalist risk mitigation product for ESG, and then transition to a bigger growth-focused ESG service. This phased strategy would allow Mercer’s clients to become comfortable with their ESG strategy and meet the requirements of their stakeholders, before becoming more ambitious and growth-minded in their ESG strategy.

2.  A unified proposition across siloed businesses - Mercer now had ESG value propositions that seamlessly connected Health, Wealth and Career services. 

3.  Internal alignment and engagement - The value propositions formed the basis of Mercer's comprehensive internal engagement plan, ensuring all client-facing teams could confidently articulate the ESG offering. The collaborative development process meant stakeholders felt ownership of the final propositions.

4.  Market differentiation in white space - Our competitive analysis identified clear market positioning that leveraged Mercer's unique multi-practice expertise. Rather than competing head-to-head with pure-play ESG consultancies, Mercer could now articulate distinctive value that only they could deliver.

The project established Mercer as a credible, unified ESG partner to their clients across all their practice areas, providing the strategic foundation for growth in one of the fastest expanding areas of professional services.