MICROCAPITAL BRIEF: UN’s Principles of Responsible Investment (PRI) Initiative Launches New Reporting Framework Seeking to Increase Transparency

The Principles for Responsible Investment (PRI) Initiative, the United Nations-backed network of international investors seeking to integrate environmental, social and corporate governance (ESG) issues into their investment strategies, has announced the launch of a new reporting framework for its signatories that is aimed to increase the transparency of their investment activities [1]. The framework consists of approximately 220 indicators relating to investment policies and practices. The indicators are grouped into modules based on the following asset classes: listed equities, fixed income, private equity, property, infrastructure and inclusive finance. Online reporting commenced on October 1, and the deadline to submit responses is March 31, 2014. By mid-2014, approximately 800 of the 1,209 signatories are expected to have used the new framework. A subset of the responses (indicators marked as “mandatory to disclose”) will be made public via a transparency report generated for each signatory. PRI will delist members that fail to report by then.

As of 2013, PRI signatories are located in 50 countries and collectively manage USD 34 trillion.

By Nisha Koul, Research Associate

About Principles for Responsible Investment (PRI): The United Kingdom-based Principles of Responsible Investment (PRI) Initiative, launched in 2006 by the United Nations (UN), is a network of international investors that are committed to integrating environmental, social and corporate governance (ESG) issues in their investment strategies. Its signatories must commit to six principles of responsible investments that focus on ESG factors, collaboration and transparency and they must report on their practices using PRI’s reporting framework that consists of approximately 220 indicators. A subset of the responses (indicators marked as “mandatory to disclose”) is made public via a transparency report generated for each signatory. PRI’s signatories include asset owners, investment managers and professional service partners. As of 2013, PRI has 1,209 signatories located in 50 countries that collectively manage USD 34 trillion.

Sources and Additional Resources:

[1] PRI Press Release, “PRI Launches New Reporting Framework,” http://www.unpri.org/press/pri-launches-new-reporting-framework/

MicroCapital Story, May 21, 2013, “MFTransparency Reveals Truth in Lending Tables Data Platform and Pricing Transparency Index,” https://www.microcapital.org/microcapital-brief-mftransparency-reveals-truth-in-lending-tables-data-platform-and-pricing-transparency-index/

MicroCapital Story, February 6, 2012, “European Sustainable Investment Forum’s (EUROSIF’s) European SRI Transparency Code Attracts 350 Signatories,” https://www.microcapital.org/microcapital-brief-european-sustainable-investment-forums-eurosifs-european-sri-transparency-code-attracts-350-signatories/

MicroCapital Story, April 13, 2011, “Principles for Investors in Inclusive Finance (PIIF) Created as Separate Work Stream Within United Nations’ Principles for Responsible Investment (PRI); CGAP (Consultative Group to Assist the Poor), Global Impact Investing Network (GIIN) Standards Observed,” https://www.microcapital.org/microcapital-brief-%E2%80%9Cprinciples-for-investors-in-inclusive-finance%E2%80%9D-piif-created-as-separate-work-stream-within-united-nations%E2%80%99-principles-for-responsible-investment-pri-c/

MicroCapital Universe Profile, Principles for Responsible Investment (PRI) Initiative, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Principles+for+Responsible+Investment

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