Eif Signs Up To United Nations Principles Of Responsible Investment
- Date: 19 October 2020
The European Investment Fund has joined the list of signatories of the UN-sponsored Principles for Responsible Investment . PRI is recognised as the leading global network for investors committed to integrating environmental, social, and governance considerations into their investment practices.
As a PRI signatory, the EIF will further enhance its ESG investment practices and processes. This cooperation is in line with EIFs strong commitment to support the European Green Deal and the EU Climate Bank new level of ambition.
Fiona Reynolds, Chief Executive Officer of PRI, said: We are thrilled to welcome the European Investment Fund on board as a signatory. EIFs role in supporting entrepreneurship and innovation in Europe is an important one, and we applaud their commitment to a more sustainable global financial system. We look forward to working together in future.
EIF Chief Executive, Alain Godard said: Signing the Principles for Responsible Investment demonstrates EIFs aim to contribute to a more sustainable global financial system. Investing responsibly is the right choice, and we have therefore mainstreamed this approach to our investment processes. Our commitment to the PRI underlines the importance of generating value whilst making positive contributions to the environment and society.
Since 2006, more than 3,000 investors have signed up to the PRI, from over 50 countries representing over US $103 trillion in assets under management.
How Is The Pri Funded
The 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. Corporate sponsorship and in-kind support is sought for standalone events and projects such as the annual PRI in Person conference and major publications/projects.
The PRIs full financial details are available in the Annual Report.
2 F& C Asset Management is now part of BMO Global Asset Management
Principle : We Will Incorporate Esg Issues Into Investment Analysis And Decision
- Address ESG issues in investment policy statements.
- Support development of ESG-related tools, metrics, and analyses.
- Assess the capabilities of internal investment managers to incorporate ESG issues.
- Assess the capabilities of external investment managers to incorporate ESG issues.
- Ask investment service providers to integrate ESG factors into evolving research and analysis.
- Encourage academic and other research on this theme.
- Advocate ESG training for investment professionals.
Learn how the PRI can support signatories implement Principle 1
Also Check: How To Invest Disposable Income
Next Steps For You As An Investor
You as an investor can use Worldfavors platform to get started with PRI compliance. We help you to follow up on any sustainability metrics that you need to report on, while guiding you to work with the PRI framework, making truly sustainable investments.Get a free demo with an expert today.
Related blog posts you might like:
Responsible Investment Charter For Canadian Universities
With these considerations in mind, the University signed on to the Responsible Investment Charter for Canadian Universities. By signing this charter, the University has committed to:
Recommended Reading: What Is An Impact Investment Fund
Principle : We Will Each Report On Our Activities And Progress Towards Implementing The Principles
We will take the following into consideration:
- Disclose how ESG issues are integrated within investment practices
- Disclose active ownership activities
- Disclose what is required from service providers in relation to the Principles
- Communicate with beneficiaries about ESG issues and the Principles
- Report on progress and/or achievements relating to the Principles using a âComply or Explainâ* approach
- Seek to determine the impact of the Principles
- Make use of reporting to raise awareness among a broader group of stakeholders.
*The Comply or Explain approach requires signatories to report on how they implement the Principles, or provide an explanation where they do not comply with them.
How Did The Pri Start
In early 2005, the then United Nations Secretary-General Kofi Annan invited a group of the worlds largest institutional investors to join a process to develop the Principles for Responsible Investment. A 20-person investor group drawn from institutions in 12 countries was supported by a 70-person group of experts from the investment industry, intergovernmental organisations and civil society.
The PRI has grown consistently since it began in 2006. For a list of public reporters, total reported AUM per asset class and AUM covered by RI activities please see our signatory information snapshot.
Read Also: Private Real Estate Investment Company
Un Environment Programme Finance Initiative
UNEP FI is a unique partnership between the United Nations Environment Programme and the global financial sector. UNEP FI works closely with over 200 financial institutions that are signatories to the UNEP FI Statement on Sustainable Development, and a range of partner organisations, to develop and promote linkages between sustainability and financial performance.
Through peer-to-peer networks, research and training, UNEP FI carries out its mission to identify, promote, and realise the adoption of best environmental and sustainability practice at all levels of financial institution operations.
Avista Capital Becomes Signatory To United Nations Principles For Responsible Investment
NEW YORK, Dec. 13, 2021 /PRNewswire/ — Avista Capital Partners , a leading private equity firm focused exclusively on healthcare, today announced that it has become a signatory to the United Nations-supported Principles for Responsible Investment , joining the leading international network of institutional investors committed to developing a more sustainable global financial system.
The Principles for Responsible Investment provide a framework for navigating the increasing relevance of environmental, social and corporate governance issues to investment practices. By joining the 4,500 plus existing signatories, Avista will advance its existing ESG policy rooted in firm accountability and transparency, while pledging to align its investment decision-making and ownership practices to the aspirational ESG standards detailed in the PRI.
The PRI was developed in early 2005, when then United Nations Secretary-General Kofi Annan invited 20 investors from institutions across 12 countries and 70 interdisciplinary experts to join a process to create this enduring framework. The resulting principles were launched in April 2006 and, since then, the number of signatories has grown from 100 to over 4,500.
The six key principles are:
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.
Esg Integration For Equity Investing
The PRI launched a guide to help investors – both asset owners and investment managers – who are implementing ESG integration techniques in their investment process. It is the most comprehensive description to date of what ESG-integrated analysis is, and how it works in practice.
The guide contains information and case studies on integration techniques that apply to investment strategies including fundamental, quantitative, smart beta and passive investment. It assists asset owners and investment managers with constructing ESG-integrated investment processes and helps asset owners to assess their managers’ integration practices. A chapter on sell-side investment research maps out the types of ESG-integrated research available, and demonstrates brokers’ integration techniques.
Example Of The Un Principles For Responsible Investment
Standard Life is a financial services company that was acquired by Manulife in 2015. Standard Lifea PRI signatoryuses ESG factors to assess emerging risks and opportunities in the automobile supply chain, particularly as it relates to new anti-pollution legislation being considered by the European Union .
After analyzing the potential impact of this new legislation on various automakers and parts suppliers, the company decided to make adjustments to their investments in that sector and also updated their valuation estimate of the lithium-ion battery manufacturer, LG Chem. This upward adjustment was due in part to their belief that the increased emission standards would accelerate the transition toward electric vehicles and create an increased demand for batteries worldwide.
Read Also: Best Free Online Investment Courses
Utmost Group Signs Up To The Un
Utmost Group has become a signatory of the United Nations-supported Principles for Responsible Investment .In a statement on 14 January, it said this move demonstrated the Group’s commitment to including sustainability factors in its investment decisions and ownership.Paul Thompson, Utmost Group chief executive said: “We are proud to be a signatory to the PRI. We believe that responsible investing has a huge role to play in building a sustainable future for current and future g…
To continue reading this article…
Join International Investment
Unlock members-only benefits:
- Unlimited access to real-time news, industry insights, video features and market intelligence
- Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
- Receive breaking news stories straight to your inbox in the daily newsletters
- Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
- Members-only access to the Editors weekly news roundup newsletter
- Members-only access to analysis via our exclusive industry polls
- Be the first to hear about our events and awards programmes
Principles For Responsible Investment
Principles for Responsible Investment is a United Nations-supported international network of investors working together to implement its six aspirational principles, often referenced as “the Principles”. Its goal is to understand the implications of sustainability for investors and support signatories to facilitate incorporating these issues into their investment decision-making and ownership practices. In implementing these principles, signatories contribute to the development of a more sustainable global financial system.
The Principles offer a framework of possible actions for incorporating environmental, social and corporate governance issues into investment practices across asset classes. Responsible investment is a process that must be tailored to fit each organisation’s investment strategy, approach and resources. The Principles are designed to be compatible with the investment styles of large, diversified, institutional investors that operate within a traditional fiduciary framework.
As of March 2022, more than 4.800 signatories from over 80 countries representing approximately US$100 trillion have signed up to the Principles. In some cases, before retaining an investment manager, institutional investors will inquire as to whether the manager is a signatory.
Also Check: Will Investment Banking Be Automated
What Is The Pris Mission
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.
Principles For Responsible Investment Releases New Framework For Signatories To Take Action On The Sustainable Development Goals
Worlds leading proponent of responsible investment releases report with five-part framework for investors to help achieve SDGs
LONDON – Today, the United Nations-supported Principles for Responsible Investment released a new report on Investing with SDG Outcomes providing signatories, including investors representing $100 trillion in assets under management, with a new high-level framework of investor actions to shape outcomes in line with the UNs SDGs.
The Principles for Responsible Investment report lays out how investors shape both positive and negative outcomes of pressing global issues such as human rights abuses, climate change and social inequality. The report argues that investors can look beyond financially material environmental, social and governance issues, and consider taking on societal and environmental issues on a systemic level as part of their investment strategies, and wider collaborative actions, to support achievement of the SDGs by 2030.
The framework from the PRI highlights that investors can use key levers including investment decisions, stewardship of investees, and engagement with key stakeholders to shape outcomes in line with the SDGs and the critical role for collective action.
Read Also: Is Gold Actually A Good Investment
Utmost Group Becomes A Signatory To The Un
Utmost Group plc, a leading provider of insurance and savings solutions, announces that it is a signatory of the United Nations-supported Principles for Responsible Investment . This demonstrates the Groups commitment to including sustainability factors in its investment decisions and ownership.
Responsible investing is one of the four pillars of Utmost Groups sustainability strategy, in which the Group has committed to increase the proportion of its investments in sustainable assets. Becoming a signatory to the PRI demonstrates our commitment to this pillar and encourages investments that contribute to prosperous and inclusive societies for current and future generations, in line with the Groups long-term mission. The Group has previously announced that it will only work with asset managers who are signatories to the PRI in the management of its own assets and guided architecture ranges.
Alongside the Groups commitment to responsible investing, the other pillars of its sustainability strategy are reduced environmental impact, good customer outcomes and positive community engagement. To meet these commitments the Group has, among other things, successfully used carbon offsets to achieve a net zero carbon status in our operations and been accredited as a Living Wage Employer in the UK.
Paul Thompson, Utmost Group CEO commented:
David Atkin, CEO of the PRI commented:
The Six Principles for Responsible Investment
For further information, please contact:
Utmost Group plc
What Is The Pri
The 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 international network of investor signatories in incorporating these factors into their investment and ownership decisions.
Don’t Miss: What Type Of Investment Is Gold
The Pri Is The Worlds Leading Proponent Of Responsible Investment
- to understand the investment implications of environmental, social and governance factors
- to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The 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 truly 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 is a collaborative, investor-led organisation. Signatories can get involved with our work by joining our advisory committees and groups, signing up to our initiatives and statements, or providing case studies.
Understanding The Un Principles For Responsible Investment
They core philosophy behind the organization is that environmental and social considerations are relevant factors in investment decision-making and should therefore be considered by responsible investors. For example, supporters of the PRI argue that it is both financially and ethically irresponsible to not consider the environmental impact of a company when assessing its merits as an investment. By contrast, many investors have historically viewed environmental and social impacts as negative externalities which can be ignored for purposes of investment decisions.
To combat this long-prevailing attitude, the PRI put forward six core principles, to which signatory companies must agree to commit themselves. As expressed on the organizations website, these six principles are as follows:
- 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.
You May Like: What Is The Best Investment Account
Fiduciary Duty In The 21st Century
A report published by the PRI found that fiduciary duty is not an obstacle to asset owner action on ESG factors. Fiduciary duty in the 21st century looked at fiduciary duty across eight markets through a series of events, interviews, case studies and a legal review.
Fiduciary duty has long been a contentious issue, especially in the US. Asset managers and advisers have often cited fiduciary duty as a reason for not incorporating ESG factors into the investment decision-making process, claiming that looking at non-financial indicators was not consistent with their fiduciary duty.
The report found that many investors have yet to fully integrate ESG issues into their investment decision making processes. Some of the reasons for this include outdated perceptions about fiduciary duty and long-term responsible investment.
The Principles For Responsible Investment
The six principles are as follows:
As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance issues can affect the performance of investment portfolios . We also recognise that applying these principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:
1. We will incorporate ESG issues into investment analysis and decision-making processes.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implementing the Principles.
You May Like: You Invest 10000 In A Complete Portfolio