Principles for Responsible Investment (PRI)

Principles for Responsible Investment (PRI)

Organization

PRI Association (in partnership with UNEP Finance Initiative and UN Global Compact)

Type(s) of Tool

PrinciplesSupport sustainability incorporation at institutional or strategic level, less specific than Guidelines.

Sector(s)

Tools applicable to all sectors

Lifecycle Phase(s)

FinanceDevelopers decide how to pay for their project.

Open Source

Yes

Language Availability

Arabic, Chinese, English, French, German, Italian, Japanese, Portuguese, Spanish, Turkish

Country of Origin

UK

Date of Development

2006

Version

v.2020

Description

The six Principles for Responsible Investment (PRI) are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating environmental, social, and governance (ESG) factors into investment practices. The tool not only aims to improve understanding the investment implication of ESG factors but also supports investors in incorporating these factors into their investment and ownership decisions. Investors can become signatories to the PRI. They then must report on their responsible investment activities annually.

Tool Outcome

The PRI guide investors decision-making, enhance their understanding of ESG criteria in the area of investments and support their alignment to them. Reports on performance must be submitted annually.

Sustainability Criteria

The six principles are:
– Principle 1: We will incorporate ESG issues into investment 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.