Employee Engagement and Well-being

This year, as part of our review and update of our 2030 aspirational goals, we recognized the need for more nuanced and impactful ways to measure our progress in building a diverse and representative workforce. As such, we are currently evaluating alternative metrics that move beyond a singular focus on the gender of new hires and which will more effectively drive progress in this area, taking into account the dynamics of our industry and the geographic realities of our operational locations.

Nevertheless, fostering a more diverse workforce remains a fundamental pillar of our sustainability strategy. We continue to implement actions to increase the diversity of our talent pool and ensure equitable recruitment practices. These include mandating female representation on all recruitment panels to mitigate unconscious bias and providing ongoing inclusive hiring training for our human resources managers. Furthermore, we actively participate in career fairs and engage in community outreach initiatives to build relationships within local communities, enhance awareness of our industry, and foster goodwill. Our commitment extends to the internal advancement of women through our succession planning process, in which we track the progress of women across the organization. This is reinforced by annual compensation reviews to ensure equitable treatment for all employees.

In parallel, we are dedicated to fostering an inclusive culture at Mercer that values diversity, exemplified by our new goal to achieve the 60th percentile in the inclusion index, as measured by our annual employee engagement survey. We firmly believe that strong employee engagement is intrinsically linked to inclusiveness, and our multifaceted approach focuses on ensuring fair treatment, actively valuing diverse perspectives and ideas, addressing concerns responsibly, and cultivating a trusting and open environment. By driving tangible progress towards a more engaged, diverse, and inclusive culture, we aim to strengthen our organization and contribute to a more equitable and sustainable future for all our employees, our industry, and the communities in which we operate.

Over the last year, a group of high-level senior women, Women-in-Leadership, came together to help drive several key initiatives across North America and Germany. Supported by key board members, these individuals act as mentors and coaches for Mercer women looking to grow and develop.

Attracting and retaining talent across all roles remains a priority—particularly in technical fields and rural areas where workforce availability can be limited. These dynamics are shared across the forestry and manufacturing industries.

Mercer continues to work with national and regional industry associations to expand awareness of career opportunities, strengthen workforce pipelines, and support long-term sector growth.

At Mercer, we are committed to maintaining fair and respectful practices across our operations. We support inclusive hiring and advancement by using structured recruitment processes, offering leadership development, and participating in local outreach to broaden awareness of careers in our industry.

We monitor internal progress through succession planning and annual compensation reviews to ensure equitable treatment across roles and functions. Senior leaders play an active role in guiding these efforts, helping to identify and remove systemic barriers where they exist.

Rather than focusing on prescriptive targets, we emphasize building a strong workplace culture where all employees have access to opportunity, recognition, and growth.