The Principles for Responsible Investment (PRI) are a set of six voluntary principles that provide a framework for integrating environmental, social, and governance (ESG) factors into investment decision-making and ownership practices. The principles were developed by a group of investors in 2006, with the goal of promoting responsible investment and encouraging investors to consider ESG factors in their investment decisions.
The six principles are as follows:
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the principles.
Principle 6: We will each report on our activities and progress towards implementing the principles.
The PRI are voluntary and are not legally binding, but they provide a useful framework for investors who want to incorporate ESG considerations into their investment processes. Many investors have adopted the principles and use them as a guide for making responsible investment decisions.
