Principles for Responsible Investment (PRI)

The PRIs were formed in a joint initiative between the UN Global Compact and the UNEP's Financial Initiative. Effectively, the principles are a framework designed to help investors when considering the impact of Environmental, Social and Governmental (ESG) issues on investment performance. The framework is voluntary and aspirational and simply provides investors with a collection of suggestions, founded upon 6 main principles, to assist them in properly addressing the impact of ESG issues. The suggestions range from 'advocate ESG training for investment professionals' to 'disclose how ESG issues are integrated into investment practices'.

The principles have been very well received. As the financial services sector become more and more aware of the impact of ESG issues on the performance of investment, the number of signatories has grown. Signatories of the principles currently manage around $20-trillion of assets worldwide.

The 6 main principles that shape these recommended actions are:

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 the effectiveness in implementing The Principles
6. We will each report on our activities and progress towards implementing The Principles.

The Reassurance Network offer a service to financial institutions to help signatories ensure that they are complying with all aspects of these principles.