There are some fantastic organisations and individuals who are producing valuable research in sustainable finance. Altiorem summarises and curates this research to assist those who want to build the case for sustainability.
We will showcase these organisations by providing a snapshot of who they are, what they do and any achievements or initiatives they have accomplished relevant to sustainable finance.
This week, the spotlight is on Principles for Responsible Investment (PRI), they are the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance factors and to support its network of investor signatories in incorporating these factors into their investment and ownership decisions.
PRI started in early 2015 when the UN Secretary-General Kofi Annan invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment.
The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.
The Six Principles
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the principles.
- We will each report on our activities and progress towards implementing the principles.
The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. They have attracted a global signatory base representing a majority of the world’s professionally managed investments.
PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI is independent, It encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations.
The PRI has multiple tools available to industry professionals, these include, the PRI Academy, PRI signatories, the Data Portal, and the PRI Collaboration Platform.
The PRI Academy trains financial services, corporate and other professionals seeking to learn how ESG issues impact company performance, shareholder value and investment decision making. The PRI signatories are required to sign and report on their responsible investment activities annually, this allows the signatories organisation to publicly demonstrate its commitment to responsible investment. The PRI Collaboration Platform is a unique forum that allows investors to pool resources, share information and enhance their influence on ESG issues. The Data Portal is a platform that allows asset owners and investment managers to access reported data.
Hot topics they are currently researching include, Amazon fires, EU taxonomy, climate change, credit ratings, reporting, tax avoidance and fiduciary duty.
