Principles for Responsible Investment

What is PRI?

Principles for Responsible Investment (PRI) is an initiative led by the United Nations for investment professionals. Following six basic Principles, investors identify and act on issues of environment, social and corporate governance (ESG). Kofi Annan, the UN Secretary-General, states "these Principles grew out of the understanding that while finance fuels the global economy, investment decision-making does not sufficiently reflect environmental, social and corporate governance considerations – or put another way, the tenets of sustainable development”. This guide leads to relevant sources on the subject, including what the Principles are, who is involved, and other useful information.

When did PRI come about?

"In early 2005 the United Nations Secretary-General invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment (PRI). Individuals representing 20 institutional investors from 12 countries agreed to participate in the Investor Group. The Group accepted ownership of the Principles, and had the freedom to develop them as they saw fit.

The Group was supported by a 70-person multi-stakeholder group of experts from the investment industry, intergovernmental and governmental organizations, civil society and academia. The process, conducted between April 2005 and January 2006 involved a total of five days of face-to-face deliberations by the investors and four days by the experts, with hundreds of hours of follow-up activity. The Principles for Responsible Investment emerged as a result of these meetings.

The process was coordinated by the United Nations Environment Programme Finance Initiative (UNEP FI) and the UN Global Compact. The PRI reflects the core values of the group of large investors whose investment horizon is generally long, and whose portfolios are often highly diversified. However, the Principles are open to all institutional investors, investment managers and professional service partners to support.

Following the launch of the Principles, Phase 2 of the process will promote adoption of the Principles by additional investors, provide comprehensive resources to assist investors in implementing the Principles and actions, and facilitate collaboration among signatories." (United Nations PRI)

The Principles for Responsible Investment

For more information on the Principles, click here.

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

Signatories

The following are the Canadian signatories involved. For a full list, click here.

• Caisse de dépôt et placement du Québec
• Canada Pension Plan Investment Board
• Comité syndical national de retraite Bâtirente
• BC Investment Management Corporation
• Inhance Investment Management

Articles

Ramstack, Tom. "U.N. Initiative Pushes Morality in Investments" Knight Ridder Tribune Business News. May 10, 2006.

Roseman, Ellen. "Investing with Your Conscience" Toronto Star. June 4, 2006.

Vriend, Krista. "Inhance Investment Management: First Canadian Mutual Fund Company to Adopt UN Principles of Responsible Investment" Canada NewsWire. May 16, 2006.

Waygood, Steve. "Spotlight: A Global Target for Best Practice" PensionsWeek. May 29, 2006.

Additional Resources

Jantzi Sustainalytics
"Sustainalytics is a leading global provider of environmental, social and governance (ESG) research and analysis, with nearly 20 years of experience in the Responsible Investment (RI) and Socially Responsible Investment (SRI) markets. Sustainalytics has insights on key industries and ideas about current trends that have implications on ESG and sustainability."

Event Webcast: United Nations Secretary-General Launches Principles for Responsible Investment at the NYSE
An archived webcast of the launch of the Principles for Responsible Investment by UN Secretary-General Kofi Annan at the New York Stock Exchange.

UNPRI FAQ
For more informatiom on the UN PRI, see their Frequently Asked Questions page.