The UN Principles for Responsible Investment (PRI)

The UN Principles for Responsible Investment (PRI) are a UN-backed international initiative that aims to promote the integration of environmental, social, and governance factors (ESG factors) into investment decisions and ownership practices.

Organisations join the PRI by becoming signatories to the initiative's six principles for responsible investment, thereby committing to progressively integrate ESG factors into their investment and ownership processes. Signatories also report regularly on their work and progress in implementing the principles.

The PRI is based on the premise that ESG factors can affect investment outcomes and should therefore be considered as part of responsible asset management. The six principles are voluntary and are formulated as follows:

• Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
• Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
• Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• Principle 4: We will promote acceptance and implementation of the principles within the investment industry.
• Principle 5: We will work together to enhance our effectiveness in implementing the principles.
• Principle 6: We will each report on our activities and progress towards implementing the principles.

We help investors, asset managers, and other financial institutions develop and structure their work on responsible investment in line with the PRI principles and the market's growing expectations around transparency and ESG integration.

The work is tailored to the organisation's investment strategy, structure, level of maturity, and reporting needs, and can range from high-level strategic support to the development of processes, governance, reporting, and ESG-related analyses.

Common challenges in working with PRI and Responsible Investment

• Integrating ESG factors into investment decisions 
   Many organisations find it challenging to integrate ESG factors into existing investment processes and financial analysis in a structured way.
• Balancing sustainability and financial objectives 
   For investors, balancing sustainability-related ambitions with return requirements, risk management, and long-term value creation can be complex.
• Access to relevant ESG information 
   The quality and comparability of ESG data often vary across companies, sectors, and geographic markets.
• Active ownership and monitoring 
   Many organisations find it challenging to develop structured processes for ESG monitoring, ownership governance, and dialogue with portfolio companies.
• Transparency and reporting Requirements and expectations around sustainability-related transparency and reporting continue to grow, placing higher demands on structure, monitoring, and communication around ESG work.