Working with UN partners

Objective 10

Deepen and strengthen our relationship with UN partners

The PRI is an investor initiative in partnership with the UNEP Finance Initiative (UNEP FI) and the UN Global Compact.

BRINGING THE INVESTOR VOICE TO COP21

The PRI worked with our UN and investor group partners at the COP21 climate negotiations in Paris, presenting a variety of opportunities for signatories:

TO GET INVOLVED IN THE EVENTS IN PARIS…

The PRI was a strategic partner to the UN’s Caring for Climate Business Forum, the official business event of COP21. Day 1 saw 500 people discuss themes including finance, responsible corporate engagement in climate policy and adaptation. Day 2 was restricted to CEOs of signatories to either Caring for Climate, UNEP FI or the PRI and focused on issues such as carbon pricing. A new mainstream of climate-aware investors are taking bold action to measure carbon emissions, reallocate capital, engage with industry and help shape policy frameworks. Presented by IIGCC, Ceres/INCR, IGCC, PRI, UNEP-FI and CDP, Climate Action Dialogue – Investor Actions on Climate Change saw leading investor CEOs discuss how they are integrating their climate goals into portfolio actions, and using their influence to drive change in the market that could help bridge the gap to a world limited to 2°C of global warming.

…AND TO CONTRIBUTE TO THE BROADER CLIMATE AGENDA

The PRI Investor Platform for Climate Actions – a joint initiative of PRI and partners including UNEP FI, CDP, IIGCC, IGCC, Ceres/INCR and AIGCC – highlighted a number of actions available to investors, including signing the Global investor statement on climate change. This saw 409 investors representing more than US$24 trillion set out the contributions investors can make to increasing low-carbon and climate-resilient investments, and offer practical proposals on how investor contributions can be scaled up through appropriate government action.

“We, the institutional investors that are signatories to this Statement, are acutely aware of the risks climate change presents to our investments. In addition, we recognise that significant capital will be needed to finance the transition to a low-carbon economy and to enable society to adapt to the physical impacts of climate change.”

CONSIDERING CLIMATE CHANGE

Proportion of Reporting Framework respondents reporting that they...

...consider climate change a long-term risk:

AO: 66%
IM: 59%

AO = Asset owners | IM = Investment managers

ATTRACTING 100+ CARBON FOOTPRINT COMMITMENTS

By COP21, the Montréal Carbon Pledge attracted commitment from more than 120 investors (managing over US$10 trillion) to measure and publicly disclose the carbon footprint of their investment portfolios on an annual basis.

The Pledge, which was launched at PRI in Person Montréal in September 2014, garnered support from investors across Europe, the USA, Canada, Australia, Japan, Singapore and South Africa.

USING EMISSIONS DATA

Proportion of assets managed by Reporting Framework respondents reporting that they...

...measured a portfolio carbon footprint:

AO: 55%
IM: 64%

...reduced portfolio exposure to emissions-intensive holdings or fossil fuel holdings:

AO: 46%
IM: 44%

...disclosed emissions risk to clients/trustees/management/beneficiaries:

AO: 30%
IM: 26%

AO = Asset owners | IM = Investment managers

SIGNING A PLEDGE FOR ACTION

Underpinning the PRI’s climate work and its support for the Paris Agreement, the PRI signed L’Appel de Paris (the Paris Pledge for Action), an opportunity for non-state actors to welcome the Paris Agreement on climate change and commit to implement it. By joining the pledge, businesses, cities, civil society groups, investors, regions, trade unions and other signatories promised to ensure that the ambition set out by the Paris Agreement is met or exceeded to limit global temperature rise to less than 2 degrees Celsius.

“We realise that dangerous climate change threatens our ability and the ability of future generations to live and thrive in a peaceful and prosperous world […] and that taking strong action to reduce emissions can not only reduce the risks of climate change but also deliver better growth and sustainable development.”

COLLABORATING TO ADDRESS FIDUCIARY DUTY

Fiduciary Duty in the 21st Century was written in conjunction with UNEP FI, UNEP Inquiry and UN Global Compact. A result of nine months of events, interviews, case studies and a legal review, it concludes that failing to integrate long-term investment value drivers, which include ESG issues, in investment practice is a failure of fiduciary duty.

 

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ENHANCING CORPORATE TRANSPARENCY TO ENCOURAGE SUSTAINABLE INVESTMENT

Coordinated by UNCTAD, the UN Global Compact, UNEP FI and the PRI, the Sustainable Stock Exchanges (SSE) initiative is a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators and companies can enhance corporate transparency and ultimately performance on ESG issues, and thus encourage sustainable investment.

In September the SSE released its Model guidance on reporting ESG information to investors. The voluntary tool for stock exchanges to use as a template to develop their own guidance for companies on reporting ESG information was accompanied by a call for all exchanges to provide guidance by the end of 2016 (15 have done so already and another 23 have committed to do so), and a written campaign led by Allianz Global Investors, and backed by the PRI and UN Global Compact