Responsible investment rising in spite of recession

The UN-backed Principles for Responsible Investment (PRI) Initiative has announced it has noticed an increase in responsible investment.

Posted on 4 September 2009

The UN-backed Principles for Responsible Investment (PRI) Initiative has announced it has noticed an increase in responsible investment.

The PRI has over 560 signatories which have noted a growing culture of active ownership and collaboration amongst investors. The financial crisis has seen increasing amounts of investors considering the environmental, social and governance (ESG) issues of their investments.

The PRI surveyed 300 global pension funds and fund managers, and found that two-thirds included responsible investment elements into contracts, and a majority of signatories consider responsible investment and ESG capabilities when selecting service providers.
 
Donald MacDonald, Chair of the PRI Initiative and a Trustee of the BT Pension Scheme said:

“The results of this year’s PRI Reporting and Assessment process show investors around the world are turning a corner on responsible investment, despite the largest financial crisis for a generation. We are still seeing progress in all areas of responsible investment from more shareholder engagement to more integrated use of ESG research.

A large number of signatories commented that the financial market turmoil of the last year has reaffirmed their belief that proper consideration of ESG issues is important to a successful investment strategy. A holistic investment process that considers ESG factors combined with a growing culture of active ownership and investor collaboration offers institutional investors a framework that can ensure we avoid repeating the mistakes that led to the financial crisis.”

The report highlights the strategic merits of investing in environmental projects during these financially uncertain times.

For more information go to www.unpri.org/files/PRI_annualresults_final.pdf

www.unpri.org/files/PRI_annualresults_final.pdf

Posted under Financial and Professional Services on 4 September 2009