Climate Action

Living Edition
| Editors: Walter Leal Filho, Anabela Marisa Azul, Luciana Brandli, Pinar Gökcin Özuyar, Tony Wall

Principles for Responsible Investment (PRI) and ESG Factors

  • Andrea GasperiniEmail author
Living reference work entry
DOI: https://doi.org/10.1007/978-3-319-71063-1_19-1

Definitions

Responsible investment

is an approach to investing that aims to incorporate environmental, social, and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns.

The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.

Active ownership

refers to the manner in which investors use their formal rights (proxy voting and filing shareholder resolutions) and their position as an investor to influence the activity or behavior of companies or other entities.

ESG integration

refers to the process of taking account of ESG data and information in investment research and decision-making processes. The definition is broad to take account of the different ways in which investment organizations consider ESG issues (such as screening, fundamental analysis, thematic analysis). The key point...

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References

Some Established Literature About Principles Responsible Investment and SRI

  1. Baumast A (2013) Principles for responsible investment. In: Idowu SO, Capaldi N, Zu L, Gupta AD (eds) Encyclopedia of corporate social responsibility. Springer, Berlin/Heidelberg. https://link.springer.com/referenceworkentry/10.1007%2F978-3-642-28036-8_561Google Scholar
  2. Gray T (2009) Investing for the environment? The limits of the UN principles of responsible investment, School of geography and the environment, University of Oxford, Oxford, Working paper series. Available at SSRN. http://ssrn.com/abstract=1416123
  3. Joly C (2011) Reality and potential of responsible investment. In: Vandekerckhove W et al (eds) Responsible investment in times of turmoil. Springer, New York, pp 193–210. https://scholar.google.com/scholar_lookup?title=Reality%20and%20potential%20of%20responsible%20investment&author=C.%20Joly&pages=193-210&publication_year=2011Google Scholar
  4. OECD Roundtable on Corporate Responsibility: OECD Guidelines for Multinational Enterprises and the Financial Sector (2007) The UN principles for responsible investment and the OECD guidelines for multinational enterprises: complementarities and distinctive contributions. http://www.oecd.org/investment/mne/38783873.pdf
  5. Richardson BJ (2011) Keeping ethical investment ethical: regulatory issues for investing for sustainability. J Bus Ethics 87:555–572. https://link.springer.com/article/10.1007/s10551-008-9958-yCrossRefGoogle Scholar
  6. Urminsky M (2001) Self-regulation in the workplace: codes of conduct, social labelling and socially responsible investment, management and corporate citizenship working paper no. 1Google Scholar
  7. Wen S (2009) Institutional investor activism on socially responsible investment: effects and expectations. Bus Ethics Eur Rev 18(3):308–333. https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1467-8608.2009.01565.xCrossRefGoogle Scholar

PRI Publications

  1. A joint UN Global Compact – PRI publication (2010) Guidance on responsible business in conflict-affected and high-risk areas: a resource for companies and investors. https://www.unpri.org/download?ac=1724. Accessed 15 July 2018
  2. PRI (2016b) Engaging with oil and gas companies on fracking. An investor guide. https://www.unpri.org/download?ac=4158. Accessed 15 July 2018
  3. PRI (2016c) From poor working conditions to forced labour – what’s hidden in your portfolio? A guide for investor engagement on labour practices in agricultural supply chains. https://www.unpri.org/download?ac=1652. Accessed 15 July 2018
  4. PRI (2017a) A blueprint for responsible investment. https://www.unpri.org/download?ac=5330. Accessed 29 October 2018
  5. PRI (2017b) The SDG investment case. https://www.unpri.org/download?ac=5301. Accessed 29 January 2019
  6. PRI (2017c) Labour practices in the apparel sector. Moving the needle on responsible labour practices. https://www.unpri.org/download?ac=1686. Accessed 15 July 2018
  7. PRI (2017d) Engagement guidance on corporate tax responsibility why and how to engage with your investee companies. https://www.business-humanrights.org/sites/default/files/documents/PRI_Tax-Guidance-2015.pdf. Accessed 29 January 2019
  8. PRI (2017e) Engaging on director nominations: an investor guide. https://www.unpri.org/download?ac=1836. Accessed 15 July 2018
  9. PRI (2018a) A practical guide to active ownership in listed equity. https://www.unpri.org/download?ac=4151. Accessed 15 July 2018
  10. PRI (2018b) How to invest in the low-carbon economy: an institutional investors’ guide. https://www.unpri.org/download?ac=5140. Accessed 29 January 2019
  11. PRI (2018c) Converging on climate lobbying. Aligning corporate practice with investor expectations https://www.unpri.org/download?ac=4707. Accessed 15 July 2018
  12. PRI (2018d) How ESG engagement creates value. https://www.unpri.org/download?ac=4637. Accessed 15 July 2018
  13. PRI (2018e) Asset owner manager selection guide. Enhancing relationships and investment outcomes with ESG insight. https://www.unpri.org/download?ac=4355. Accessed 15 July 2018
  14. PRI (2018f) The EU Commission action plan: financing sustainable growth. Assessment of the reform areas for PRI signatories. https://www.unpri.org/download?ac=5173 Accessed 29 January 2019
  15. PRI An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact (2017), Integrating ESG issues into executive pay. A review of global utility and extractive companies. https://www.unpri.org/download?ac=1798. Accessed 15 July 2018
  16. PRI and ERM (2018) ESG monitoring, reporting and dialogue in private equity. https://www.unpri.org/download?ac=4839. Accessed 15 July 2018
  17. PRI Baker McKenzie (2017) Climate disclosure country reviews. Recommendations of the FSB task force on climate-related financial disclosures. https://www.unpri.org/download?ac=1404. Accessed 15 July 2018
  18. PRI Carbon Tracker (2017) 2 Degrees of separation: transition risk for oil and gas in a low carbon world. http://2degreeseparation.com/. Accessed 15 July 2018
  19. PRI EDF (2016) An investor’s guide to methane: engaging with oil and gas companies to manage a rising risk. https://www.unpri.org/download?ac=1846. Accessed 15 July 2018
  20. PRI in partnership with WWF (2018) Growing water risk resilience. an investor guide on agricultural supply chains. https://www.unpri.org/download?ac=4195. Accessed 15 July 2018
  21. PRI Novethic (2017) Investor action on climate change – a PRI Novethic assessment of global investor practices. https://www.unpri.org/download?ac=1871. Accessed 15 July 2018
  22. PRI United Nations Global Compact (2016) Engaging on anti-bribery and corruption. https://www.unpri.org/download?ac=1826. Accessed 15 July 2018

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Head of Sustainability (AIAF)Associazione Italiana per l’Analisi FinanziariaMilanItaly

Section editors and affiliations

  • Federica Doni

There are no affiliations available