The UN Principles for Responsible Investment (PRI) was established to encourage investors to incorporate environmental, social and governance (ESG) considerations into their decision-making and ownership practices. The PRI is backed by six foundational principles which focus on how ESG issues can be measured and incorporated into the investing process.

The six PRI principles include: • Incorporating ESG factors into investment analysis and making decision: Signatories must ensure that ESG factors are considered when performing investment analysis and making decision. • Being active owners: Signatories must use their influence as the most knowledgeable investors to promote environmental and social issues. • Reporting transparency: Signatories must disclose annually the extent to which they have incorporated ESG issues into their investment practices. • Fostering a dialogue with companies: Signatories must maintain an open dialogue with the companies in which they invest to ensure ESG concerns are addressed. • Promoting integrity in the investment process : Signatories must uphold their responsibilities to protect investor’s interests and assets. • Supporting the PRI : Signatories must actively support the PRI and its principles.

The UN Principles for Responsible Investment provides investors with an avenue to secure a responsible investment practice that adheres to the highest international standards. By being a signatory, investors demonstrate to their clients and peers that they are dedicated to maximising returns whilst actively investing for a sustainable future. As signatories, investors agreed to be transparent, impartial, and to monitor ESG factors into their financials when making investment decisions.

Furthermore, this global network provides investors the opportunity to network, share experiences, and better understand how ESG investing can help them reach their goals. The PRI also works to encourage and strengthen the institutional commitment of asset owners, the indicators used to measure ESG impact, and the removal of barriers that hinder the adoption of environmental and social goals.

Signatories may gain access to various reporting tools, participate in research, or consult with PRI experts. Through continuous dialogue and learning with industry professionals and peers, UN Principles for Responsible Investment signatories are able to develop a deeper understanding of ESG best practices.

In conclusion, the UN Principles for Responsible Investment seeks to promote environmental and social responsibility among the world’s investors. By signing up to the PRI, investors demonstrate a commitment to finding and supporting the best methods in sustainable investing. By adhering to the principles and setting a good example, signatories are taking a step towards creating a more responsible, equitable, and sustainable investment climate.