A new white paper, “Why the PRI Is Not Just PR,” is available as a free download from The Corporate Library’s website.
The United Nations’ Principles for Responsible Investment (PRI), launched in 2006, have been endorsed by more than 670 asset owners, money managers, and investment service providers who have pledged to incorporate environmental, social, and corporate governance (ESG) issues into their investment analysis and ownership policy. At first glance, the Principles can seem vague: what exactly does it mean, one might ask, to “incorporate ESG issues into investment decision-making” or “seek appropriate disclosure on ESG”? The Principles are explicitly “voluntary and aspirational,” and signing on to them might seem like a mere marketing gesture. However, the sixth of the Principles is a promise to report on an entity’s progress toward implementing all of them, and in August 2009 five organizations were removed from the signatory list for failing to make such a report.
The report goes on to describe each of the Principles, provides guidance on what each is about and on how to comply.