To help signatories collaborate, we produce resources, events and online tools to help them work together on environmental, social and governance issues.
We published Engaging with oil and gas companies on fracking: an investor guide. It details the results of a two-year engagement between 41 signatories representing US$5.1 trillion and 37 companies. Following engagement, 87% of the companies improved their disclosure of fracking-related policies and practices.
Along with the Environmental Defense Fund (EDF), we released An investor’s guide to methane. It provides a framework for investors to help them identify concrete next steps companies can take to improve management, benchmark company performance and engage on methane risks. The guide suggests that as part of their engagement, investors should expect all operators to measure, report and reduce methane emissions.
We joined forces with WWF Indonesia, WWF International and CLSA to arrange a trip for 22 global investors to meet with local palm oil companies and federal and provincial government in Indonesia. Investors spent three days discussing the challenges to making the palm oil industry more sustainable. They engaged with local companies and stakeholders in person, giving them a deeper understanding of the material risks associated with the industry.
Following our engagement on labour practices in agricultural supply chains over 2014-2016, an evaluation of engagement results showed that 67% of engaged companies had improved their reporting and practices on labour standards. Lessons learned are available in the engagement guide From poor working conditions to forced labour – what’s hidden in your portfolio?
In late 2016 we launched a second phase of the engagement focused on areas where companies are still lagging - such as supplier codes of conduct and corrective action.
We published ESG integration: how are social issues influencing investment decisions? It contains case studies from a wide range of sectors, from retail to mining, highlighting methods investors can use to integrate social issues into listed equity investments. It demonstrates how a range of factors, from gender equality to workforce culture, can be applied to different integration techniques.
Since 2015, the PRI has managed a collaborative engagement with 53 investors representing more than $7trillion AUM that focuses on encouraging global oil and gas and mining companies to implement the UN Guiding Principles on Business and Human rights, and to improve the level of disclosure of human rights policies and processes. In autumn 2017, the PRI will launch an outcomes document highlighting the results, key findings and trends.
Linking sustainable workplace practices and returns
ClearBridge Investments examined workplace practices to help competitively position an investee company in the retail sector
In 2013, we commissioned Transparency International to evaluate public disclosure on anti-bribery and corruption issues, which led to an investor engagement with 31 companies across multiple sectors; 94% of companies responded to contact. This resulted in “Engaging on antibribery and corruption: a guide for investors and companies.” (2016) It provides practical advice for investors on how to engage companies to bolster their anti-bribery and corruption policies and systems
We convened a group of eleven investors from Europe, Asia and North America to explore the issue of corporate tax planning, leading to the production of Investors’ recommendations on corporate income tax disclosure. Developed from the 2015 Engagement guidance on corporate tax responsibility, it helps investors engage with companies by recommending a series of steps to increase tax transparency.
Following a collaborative engagement on the director nominations process, we launched a guide outlining the benefits and challenges of engagement on the issue in the US and France. It features best practices and lessons learnt from the engagement and underscores the need for investors to be proactive. The report finds that a blend of market forces and peer pressure, aided by investor engagement, are driving up standards in relation to how directors are appointed.
The number of podcast downloads on ESG issues such as proxy access, labour standards and climate change…up from 900 the year before.
This year, we introduced the PRI Vote Declaration System, a platform through which investors can enhance transparency by pre-declaring their votes during proxy season. Signatories can also engage with other actors in the investment chain through the PRI’s Collaboration Platform, an online tool to foster long-term value creation through collaborative engagement.
of resolutions with at least one pre-declaration
increase in Collaboration Platform posts, against a KPI target of 6%
of signatories active on the platform, against a KPI target of 25%
awareness and acknowledgement among companies included in PRI-coordinated engagement activities, against a KPI target of 70%
active ownership among listed equity assets, against a KPI target of 70%
To counter this, we will be releasing guidance on how to implement Principle 2
Top ten issues catching signatory attention:
China's efforts in establishing a green financial system
“There’s tremendous scope for scaling up green finance and green investment.”
Dr Ma Jun, Chief Economist, Research Bureau, People’s Bank of China
A blueprint for responsible investment
"It's important to have an ambitious plan and a sense of urgency about what we want to achieve.”
Angela Emslie, Chair, HESTA
For the first time since 2008, PRI in Person returned to Asia, marking responsible investment’s growing momentum in the continent. Over 600 delegates from 33 countries descended on Marina Bay Sands in Singapore. 92% of attendees rated their experience as either ‘good’ or ‘excellent’.
“It was inspiring…I can feel the sense of change going forward.”
As the PRI turned 10, the conference provided an ideal opportunity to discuss the future of responsible investment. There were a number of themes discussed during keynote speeches and breakout sessions including:
As well as PRI in Person, we continued to deliver other events on a wide range of topics including climate change, impact investing, green bonds and connecting human rights to financial performance. To inform our Blueprint for responsible investment, we also held over 20 workshops and roundtables around the world with signatories.
49% of signatories participated in events during the year, against a KPI target of 70%
We are working to strengthen our regional reach and communications.