Principles for Responsible Investment
Principles for Responsible Investment (PRI) are supported by the UN and consist of six general guidelines for investors' CSR work.
All companies engaged in investment activities can use the six principles, but companies can also opt to subscribe to PRI. Investors who are members of PRI include institutional investors, investment banks and investment advisers. Today, PRI has 1,197, of which 33 are Danish (June 2013). Investors that are signatories to PRI undertake an obligation to adhere to the six principles and to report on their work.
The six principles:
- We will incorporate environmental, social and corporate governance issues into investment analysis and decision-making processes
- We will be active owners and incorporate environmental, social and corporate governance issues into our ownership policies and practices
- We will seek appropriate disclosure on environmental, social and corporate governance issues by the entities in which our invest
- We will promote acceptance and implementation of the Principles within the investment industry
- We will work together to enhance our effectiveness in implementing the Principles
- We will each report on our activities and progress towards implementing the Principles
The principles were created in collaboration between the UN Global Compact, the UN Environment Programme Finance Initiative (UNEP FI) and a number of the world's largest investment banks.
The principles are general and it is up to each investment company to decide how it will observe the principles and focus its activities. In this respect, it is an advantage to target activities at the areas subject to the greatest problems or risks.
Read more at PRI's website.
For companies that do not have investment as their principle activity, the UN has drawn up the UN Global Compact, which sets out ten overall principles for companies' CSR.