Principles for Responsible Investment (PRI)
The Principles for Responsible Investment (PRI) are six general guidelines for investors working with CSR.
The six principles in the Principles for Responsible Investment (PRI) were developed in cooperation between the UN Global Compact, the UN Environment Programme Finance Initiative (UNEP FI) and a number of the world's largest investment businesses. The United Nations support the principles.
All businesses involved in investment activities may draw on the six principles, but businesses may also choose to accede to the PRI. Businesses which do not have investment as their core business may draw on the ten principles in the Global Compact instead.
Investors who are members of the PRI include institutional investors, investment banks and investment advisors. The PRI currently has 899 members, 27 of which are Danish (May 2011).
Investors acceding to the PRI undertake to observe the six principles and report on their efforts.
- Investors will incorporate environmental, social and corporate governance (ESG) issues into investment analysis and decision-making processes
- Investors will be active owners and incorporate ESG issues into ownership policies and practices
- Investors will seek appropriate disclosure on ESG issues by the entities in which they invest
- Investors will promote acceptance and implementation of the Principles within the investment industry
- Investors will work together to enhance their effectiveness in implementing the Principles
- Investors will report on activities and progress towards implementing the Principles
These are general principles that can be implemented using different strategies. It is up to each investment business to decide how to adhere to the principles and where to focus efforts. The best strategy is to target activities towards areas with the greatest problems or risks.
The principles have been broadly formulated and they do not prevent businesses from following other principles and standards, such as the OECD Guidelines for Multinational Enterprises, etc.