Asset owners have committed to integrating ESG into their investment analysis and decision-making processes, by creating and advocating for Principles for Responsible Investment (PRI). The Principles recognize this integration as part of the fiduciary responsibility of asset owners. As outlined under the PRI, asset owners will also expect better disclosure from investee companies on sustainability issues.
Initiated by UNEP-FI and the Global Compact, the Principles for Responsible Investment (PRI) articulate 6 principles on the incorporation of environmental, social, and governance (ESG) information into investment decisions.
This includes a principle (#3) on “seek appropriate disclosure on ESG by the entities in which we invest”. GRI-based reporting is cited as an example of a way to implement this principle.
Strong on articulating the concept of responsibility, they are also not shy of serious backing: the PRI are signed by $2 trillion in asset owners and $3 trillion in asset managers, signaling strong messages to the market on the commitment of asset owners to integrating ESG into investment analysis and decision making.
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