Skip to main content

PRI

The Principles for Responsible Investment (PRI) are an initiative supported by the United Nations that aims to promote a sustainable global financial system by encouraging investors to adopt responsible investment practices. These principles are designed to help investors incorporate environmental, social and governance (ESG) factors into their decision-making processes.

The PRI provide a framework for responsible investment and help investors create long-term value while having a positive impact on the environment and society. They promote a more sustainable global financial system and help to ensure that financial returns are in line with ethical and sustainable practices.

The six principles of the PRI are

  1. We will incorporate ESG issues into investment analysis and decision-making.

  2. We will be active owners and integrate ESG issues into our ownership policies and practices.

  3. We will require appropriate disclosure on ESG issues from the companies in which we invest.

  4. We will promote the acceptance and implementation of the principles in the investment industry.

  5. We will work together to improve our effectiveness in implementing the principles.

  6. We will report on our activities and progress in implementing the principles.

Use of the PRI

  1. Integration into investment decisions: Investors integrate ESG criteria into their analysis and decision-making processes.

  2. Active ownership: exercise of voting rights and engagement with the companies invested in to promote ESG practices.

  3. Transparency and accountability: Demand for more transparency regarding ESG practices from the companies in which investments are made.

Obligations for companies

  1. Implementation of the principles: Commitment to integrate the PRI into business and investment practices.

  2. Reporting and disclosure: Companies and investors should report on their progress and practices in relation to the implementation of the PRI.

Challenges

  1. Data availability and quality: It can be difficult to obtain reliable and comparable data on ESG aspects.

  2. Implementation costs: The integration of the PRI may require additional costs and resources.

  3. Adaptation to different investment strategies: The application of the principles can vary depending on the investment strategy and portfolio.

back to overview