Engaging decision-makers

Objective 3

Engage and facilitate dialogue with key decision-makers

The PRI provides tools and insight to international policy makers and standard setters to advance progress towards a regulatory and investment environment consistent with the six Principles.

BRINGING THE INVESTOR VOICE TO PUBLIC POLICY DISCUSSIONS

The PRI uses analysis of Reporting Framework data, the results of PRI-coordinated engagements and ongoing discussions with investors to respond to policy consultations, including:

SIGNATORIES ENGAGING WITH POLICY MAKERS

Reporting Framework respondents reporting engaging with policy makers:

AO: 52%
IM: 37%

AO = Asset owners | IM = Investment managers


 

ADDRESSING POLICY MAKERS OVER THE ROLE OF FIDUCIARY DUTY

Fiduciary duty in the 21st century concludes that failing to integrate long-term investment value drivers, which include ESG issues, in investment practice is a failure of fiduciary duty. In addition to a set of global recommendations for how policy makers, investors and intermediaries can work towards reflecting this in policy, regulation and investment practice, the report made a series of country-specific recommendations that in particular targeted regulators and policy makers acting in each country over changes within each of the eight markets covered: Australia, Brazil, Canada, Germany, Japan, South Africa, UK and US.

In March 2016, the PRI, UNEP FI and The Generation Foundation launched a three-year project on investor duties, including:

  • publishing and implementing roadmaps on the policy changes required to achieve full integration of ESG issues in investment processes and practices across the eight countries;
  • extending the research into fiduciary duties – and, more broadly, investor duties – to five major Asian markets: China (including Hong Kong), India, Korea, Malaysia and Singapore;
  • working with investors, governments and intergovernmental organisations, to develop and publish an international statement on fiduciary duty, which includes the requirement to integrate ESG issues into investment processes and practices.

The PRI responded to the US Department of Labor’s Interpretive Bulletin stating that “environmental, social and governance factors may have a direct relationship to the economic and financial value of an investment, and when they do these factors are proper components of the fiduciary’s analysis”, by publishing Addressing ESG Factors Under ERISA, a paper comprising two legal opinions from noted ERISA experts Groom Law Group and Morgan Lewis on integrating ESG issues into investment decision-making under the Employee Retirement Income Security Act (ERISA) guidelines.

 

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ENGAGING POLICY MAKERS ON CLIMATE CHANGE

The PRI's work engaging policy makers on climate change is primarily done in collaboration with our UN parterns and other key stakeholders.

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SIGNATORIES ENGAGING

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

...engage with policy makers on climate change:

AO: 46%
IM: 35%

AO = Asset owners | IM = Investment managers


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