Principles for Responsible Investment (PRI)
Principles for Responsible Investment (PRI) is 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.
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OVERVIEW
Principles for Responsible Investment (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 a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.
The Principles were developed by investors, for investors. They have attracted a global signatory base representing a majority of the world’s professionally managed investments.
The PRI aims to act 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 acts independently. It encourages investors to use responsible investment to enhance returns and better manage risks; 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 Academy trains financial services, corporate and other professionals seeking to learn how ESG issues impact company performance, shareholder value and investment decision making. The mission is to be the leading provider of ESG education and training services to key stakeholders in global investment and capital markets as well as to facilitate the practical implementation of ESG consideration in investment and capital markets.
Signatories recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with their fiduciary responsibilities, they commit to the following:
- Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
- Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
- Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
- Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
- Principle 6: We will each report on our activities and progress towards implementing the Principles.
PRI has also organised initiatives to ensure that different areas of responsible investments are covered.
MISSION STATEMENT
We believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole. The PRI will work to achieve this sustainable global financial system by encouraging adoption of the Principles and collaboration on their implementation; by fostering good governance, integrity and accountability; and by addressing obstacles to a sustainable financial system that lie within market practices, structures and regulation.
FUNDING SOURCES
PRI is funded primarily via an annual membership fee payable by all signatories. Additional funding comes from grants from governments, foundations and other international organisations.
PRI acknowledges support of FTSE Russell, MSCI and RepRisk for providing in-kind access to their data platforms.