Convening for collaboration

Objective 2

Provide opportunities for signatories to convene, share knowledge and collaborate

SUPPORTING COLLABORATIVE INVESTOR ACTION

The PRI works with signatories to identify key environmental, social and governance issues in the market, and coordinates collaborative initiatives to address them

PRI-COORDINATED ENGAGEMENTS

The proportion of companies targeted by engagements co-ordinated by the PRI...

...receiving a letter/meeting/call from the investor group:

90%

...ackowledging the issue and happy to discuss it with the investor group:

75%

...against targets of 80% and 60%.

...ON CORPORATE CLIMATE LOBBYING

The PRI brought together a worldwide group of more than 60 investors, representing over US$3.8 trillion, who have signed a statement outlining investor expectations that company lobbying on climate change related policy and regulation must be in line with the universally accepted goal of limiting global temperature rises to two degrees Celsius. They are explicitly calling for improvements in practice and transparency from investee companies on aspects such as their governance processes for climate policy engagement and their membership of or support for all third-party organisations that lobby on climate change.

The PRI is continuing to coordinate a working group of 22 investors engaging companies in Australia, Canada and the USA on their climate-related lobbying activities, in particular where the company’s public position is inconsistent with the positions of trade associations it belongs to. We are working with the Institutional Investors Group on Climate Change (IIGCC) on their parallel initiative in Europe. The statement and working group also bolster existing efforts underway including the UN’s Caring for Climate programme on responsible corporate engagement in climate policy.

Read more

 


 

...ON CORPORATE TAX RESPONSIBILITY

Engagement guidance on corporate tax responsibility: why and how to engage with your investee companies is the result of the work of eleven global investors convened by the PRI to explore why aggressive tax strategies are material to investors, what red flags to look out for and a list of questions to consider asking companies.

The guide outlines that an aggressive corporate approach to tax planning can:

create earnings risk and lead to governance problems

damage reputation and brand value

cause macroeconomic and societal distortions

It lays out how investors can identify risks in the portfolio, and the questions they should then ask companies, depending the tax profile of the company, the investor’s own priorities, any existing relationship with the company and the stage of the dialogue.

 

Read more

 


 

...ON EMPLOYEE RELATIONS

An investor guide to engaging retailers on employee relations describes lessons learnt from a PRI-coordinated engagement that saw 24 investors with US$1.5 trillion of assets under management work together to enhance 27 global retail companies’ performance and reporting on employee relations. After 16 months, 22 of the companies improved their reporting and three improved their performance, against a set of KPIs identified as financially material. The most improved companies increased their overall performance and reporting score by 26%.

The guide outlines that employee relations and company’s financial performance are positively correlated – highly engaged employees:

stay longer

are more productive

provide better customer service

It describes how investors can assess the company’s real understanding of, and approach to, the importance of its employees to its business. It provides tried-and-test questions on key topics, and describes how to evaluate companies’ responses and respond to companies’ concerns.

Read more

 


 

PODCASTS

900

Number of downloads for the first three episodes of the PRI's new podcast series: COP21 roundup, The UK Modern Slavery Act and VW scandal and the automotive industry.

 


 

A UNIQUE PRIVATE FORUM TO POOL RESOURCES, SHARE INFORMATION AND ENHANCE INFLUENCE

The PRI’s Collaboration Platform offers a range of global initiatives that involve investors engaging with listed companies, policy makers and other actors in the investment chain.

Some examples of signatory-led initiatives are:

Protecting natural World Heritage Sites

Led by Aviva Investors and Investec Asset Management, this collaborative engagement encourages extractive companies to make no-go commitments relating to exploration or operations in UNESCO natural World Heritage Sites, and will commend those companies that have made no-go commitments and have well developed management systems and processes.

The International Union for Conservation of Nature (IUCN) has noted a rise in extractive concessions and operations that could impact natural World Heritage Sites: its 2014 World Heritage Outlook identified these as amongst the greatest potential future threats. Through their policies and conduct, extractives companies, and the financial institutions that supply them with capital for their projects, have an opportunity to help reduce these threats.

Signatories: Log in to read more

Calling for sustainable big pharma business models and access to medicine

Amundi, Candriam Investors Group, Öhman, PGGM and more than 20 other institutional investors invited PRI signatories to sign a letter calling the world's largest research-based pharmaceutical companies to participate as fully as possible in the data collection process of the Access to Medicine Foundation. More than 30 investors decided to support the initiative.

The Access to Medicine Foundation measures and ranks pharmaceutical companies on the basis of their policies and practices for improving access to medicine and developing sustainable business models in emerging markets and developing countries, thus enabling investors to better assess long-term investment risks within their portfolios.

Signatories: Log in to read more

Exploring the proxy voting chain

Led by Capital Group International, Universities Superannuation Scheme, UBS Asset Management, Robeco, Aviva Investors, Hermes Equity Ownership Services and Investec Asset Management, this initiative on vote confirmation explored the proxy voting chain through which investors cast votes at company shareholder meetings. The investor group invited PRI signatories and other chain participants to discuss possible solutions and, following the completion of a pilot confirmation project, has published its findings.

With investors increasingly submitting votes at shareholder meetings by proxy, the potentially complex proxy voting chain involving several intermediaries (voting platforms, custodians, sub-custodians, registrars etc.) means it is often uncertain whether a vote arrives correctly at the meeting, if at all.

Signatories: Log in to read more

Signatory activity on the Collaboration Platform

PLATFORM USERS BY REGION

Participation by signatory region:

Europe: 57%
N. America: 25%
Oceania: 10%
Other: 8%

Other = Africa (3%), Asia (3%) and Latin America (2%)

TOP 20, MOST ACTIVE SIGNATORIES in 2015/16:

  • ACTIAM
  • Aviva Investors
  • Bâtirente
  • BMO Global Asset Management
  • Boston Common Asset Management
  • Boston Trust & Investment Management Company
  • California Public Employees' Retirement System CalPERS
  • Calvert Investments
  • CCLA
  • Domini Social Investments
  • Hermes Fund Managers Limited
  • Interfaith Center on Corporate Responsibility
  • Miller Howard Investments
  • MN
  • NEI Investments
  • Pax World
  • PGGM Investments
  • Rathbone Brothers Plc
  • Robeco
  • Trillium Asset Management

NEW POSTS

175

Number of new posts

...compared to 76 in 2014/15

USERS BY SIGNATORY TYPE

Participation by signatory categories:

AO: 36%
IM: 56%
SP: 8%

AO = Asset owners | IM = Investment managers
SP = Service providers


THE LARGEST RESPONSIBLE INVESTMENT EVENT EVER

PRI in Person 2015 drew in a diverse global audience and attracted significant media attention, making this year the largest responsible investment conference ever held

Since the inaugural PRI in Person was hosted in Geneva in 2007, the PRI has brought together investors and thought-leaders every year to share knowledge, detail experience and showcase the latest innovations in responsible investing. It is the only truly global conference on the responsible investment calendar.

“Having 1,000 people attend a responsible investment conference 10 years ago was unthinkable, 5 years ago unimaginable and today it is reality.”

Read moreBook your place at PRI in Person 2016

MORE THAN 60 EVENTS AROUND THE WORLD

The PRI has hosted dozens of events around the world on a diverse array of topics, bringing together signatories, the wider investment community and other stakeholders to share knowledge and build relationships.

Just some of our events’ achievements this year have been to:

  • highlight systemic risks to capital markets and the innovative solutions being created to address them
    -- Innovations for a sustainable financial system – New York
  • examine possible actions for the investment community to take in order to mitigate material risks related to climate change
    -- Climate change investment strategies and carbon footprinting – Toronto
  • bring responsible investment to high-profile mainstream finance events
    -- SuperReturn International ESG Summit – Berlin
  • convene regional groups of signatories together to meet their peers and share experiences
    -- including in Stockholm, Frankfurt, Montreal, Tokyo, San Fransisco, Edinburgh
  • boost responsible investment’s presence in Asian markets
    -- Practicing the Principles in Korea – Seoul
    -- Mitigating risk and maximising returns with responsible private equity investing – Hong Kong
  • explore the implications of fiduciary duty
    -- Fiduciary duty in the 21st century – Cape Town, Vancouver, Toronto, New York, London
  • discuss why and how investors can respond to major ESG issues
    -- Should investors care about supply chain workers receiving a living wage? – London
    -- Investors and the Corporate Human Rights Benchmark – Paris
    -- Effective governance: the carrot or the stick? – Copenhagen

 

Read more

SIGNATORIES AT EVENTS

Signatories who attended a PRI event:

64%

...against a target of 50%.