About Responsible Investment
There is a growing view among investment professionals that environmental, social and corporate governance (ESG) issues can affect the performance of investment portfolios. Investors fulfilling their fiduciary (or equivalent) duty therefore need to give appropriate consideration to these issues, but to date have lacked a framework for doing so. The Principles for Responsible Investment provide this framework.
The Principles are voluntary and aspirational. They are not prescriptive, but instead provide a menu of possible actions for incorporating ESG issues into mainstream investment decision-making and ownership practices.
Signing represents a very real commitment to the Principles, demonstrating support from the top-level leadership of the whole investment business. And applying the Principles should not only lead to better long-term financial returns but also a closer alignment between the objectives of institutional investors and those of society at large.
Developing the Principles for Responsible Investment
In early 2005 the United Nations Secretary-General invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment (PRI). Individuals representing 20 institutional investors from 12 countries agreed to participate in the Investor Group. The Group accepted ownership of the Principles, and had the freedom to develop them as they saw fit.
The Group was supported by a 70-person multi-stakeholder group of experts from the investment industry, intergovernmental and governmental organizations, civil society and academia. The process, conducted between April 2005 and January 2006 involved a total of five days of face-to-face deliberations by the investors and four days by the experts, with hundreds of hours of follow-up activity. The Principles for Responsible Investment emerged as a result of these meetings.
The process was coordinated by the United Nations Environment Programme Finance Initiative (UNEP FI) and the UN Global Compact. The PRI reflects the core values of the group of large investors whose investment horizon is generally long, and whose portfolios are often highly diversified. However, the Principles are open to all institutional investors, investment managers and professional service partners to support.
Following the launch of the Principles, Phase 2 of the process will promote adoption of the Principles by additional investors, provide comprehensive resources to assist investors in implementing the Principles and actions, and facilitate collaboration among signatories.
Green Invest is a voluntary signatory of the United Nations (UN) Principles for Responsible Investment
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Green Invest will incorporate ESG issues into investment analysis and decision-making processes
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Green Invest will be an active owner and incorporate ESG issues into its ownership policies and practices
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Green Invest will seek appropriate disclosure on ESG issues by the entities in which it invests
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Green Invest will promote acceptance and implementation of the Principles within the investment industry
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Green Invest will work together to enhance our effectiveness in implementing the Principles
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Green Invest will report on our activities and progress towards implementing the Principles
In signing the Principles, Green Investment as an investor, publicly commits to adopt and implement them, where consistent with its fiduciary responsibilities. Green Invest also commits to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve the Company's ability to meet commitments to shareholders and beneficiaries as well as to better align the Company's investment activities with the broader interests of society.
Click here for full details of PRI Principles