Definitions
- Responsible investment:
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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:
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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:
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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...
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References
Some Established Literature About Principles Responsible Investment and SRI
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_561
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
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=2011
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
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-y
Sparkes R (2002) Socially responsible investment. Wiley, West Sussex. https://scholar.google.com/scholar_lookup?title=Socially%20responsible%20investment&author=R.%20Sparkes&publication_year=2002
Urminsky M (2001) Self-regulation in the workplace: codes of conduct, social labelling and socially responsible investment, management and corporate citizenship working paper no. 1
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.x
PRI Publications
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
PRI (2015) Fiduciary duty in the 21st century. https://www.unpri.org/fiduciary-duty/fiduciary-duty-in-the-21st-century/244.article
PRI (2016a). Sustainable financial system: nine priority conditions to address. https://www.unpri.org/sustainable-financial-system/how-the-pri-is-contributing-to-a-sustainable-financial-system/199.article
PRI (2016b) Engaging with oil and gas companies on fracking. An investor guide. https://www.unpri.org/download?ac=4158. Accessed 15 July 2018
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
PRI (2017a) A blueprint for responsible investment. https://www.unpri.org/download?ac=5330. Accessed 29 October 2018
PRI (2017b) The SDG investment case. https://www.unpri.org/download?ac=5301. Accessed 29 January 2019
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
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
PRI (2017e) Engaging on director nominations: an investor guide. https://www.unpri.org/download?ac=1836. Accessed 15 July 2018
PRI (2018a) A practical guide to active ownership in listed equity. https://www.unpri.org/download?ac=4151. Accessed 15 July 2018
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
PRI (2018c) Converging on climate lobbying. Aligning corporate practice with investor expectations https://www.unpri.org/download?ac=4707. Accessed 15 July 2018
PRI (2018d) How ESG engagement creates value. https://www.unpri.org/download?ac=4637. Accessed 15 July 2018
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
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
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
PRI and ERM (2018) ESG monitoring, reporting and dialogue in private equity. https://www.unpri.org/download?ac=4839. Accessed 15 July 2018
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
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
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
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
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
PRI United Nations Global Compact (2016) Engaging on anti-bribery and corruption. https://www.unpri.org/download?ac=1826. Accessed 15 July 2018
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Gasperini, A. (2019). Principles for Responsible Investment (PRI) and ESG Factors. In: Leal Filho, W., Azul, A., Brandli, L., Özuyar, P., Wall, T. (eds) Climate Action. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. https://doi.org/10.1007/978-3-319-71063-1_19-1
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