UN-supported leading responsible investing organization Principles for Responsible Investment (PRI) announced today the launch of a new three-year strategy, forming the next step in the organization’s mission to foster an economically efficient, sustainable global financial system. According to the strategy, the PRI will prioritise work in the key areas of climate change mitigation and human rights.
The Principles for Responsible Investment were established by a group of investor signatories in 2006, supported by the United Nations, to aid investors in integrating ESG factors into the investment process. To achieve this goal, the PRI group established 6 voluntary and aspirational principles* for investors to follow, including the incorporation of ESG issues into the investment process, and into signatories’ own ownership policies and practices. The PRI currently has nearly 4,000 signatories, representing more than $110 trillion in AUM.
The theme of the PRI’s new strategic plan is ‘building a bridge between financial risk, opportunities and real-world outcomes.’ In a blog post introducing the strategy, PRI Chair Martin Skancke and CEO Fiona Reynolds, explained:
“At its core, it will focus on ESG incorporation and we will continue to develop resources for those new to responsible investment as well as to respond to industry developments with work on asset classes and strategies where incorporation continues to progress. Empowering asset owners in their position at the top of the investment chain also remains critical to our success and we will work closely with them to increase the ambition of stewardship activities.”
The strategy is built along three key drivers:
- Big Tent. The PRI is open to signatories of all types, irrespective of size, scale or geography, joined by a shared ambition to drive responsible investment forward and a commitment to the six Principles and the PRI Mission.
- Accountability. The strategy reiterates that accountability is essential for ensuring that progress on responsible investment continues, and for maintaining the credibility that comes with being a PRI signatory. This will include further strengthening the PRI Reporting Framework and minimum requirements.
- Scalability. The PRI aims to support signatory learning and collaboration at scale, leveraging signatories’ responsible investment effort and impact.
Skancke and Reynolds added:
“Our ultimate aim is to enable a sustainable global financial system and delivering this three-year strategy will be a major steppingstone to achieving our mission. It is an ambitious vision – and one we are well placed to achieve together.”
Click here to see the PRI’s new strategic plan.
* The PRI principles:
- 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.