Investors encourage participation in UN’s ‘PRI for Rio’ global initiative

As investors across the globe are increasingly evaluating companies’ ability to address environmental, social and corporate governance (ESG) opportunities and challenges, a coalition of 34 institutional investors - managing approximately US$3.3 trillion in assets - are encouraging 1900 companies, located in 44 countries, to consider joining the United Nations Global Compact as part of the “Principles for Responsible Investment (PRI) for Rio” collaborative engagement. 

 

The investors supporting this engagement, who are all signatories to the UN-supported Principles for Responsible Investment (PRI), are based in Australia, Europe, North and South America and include BNP Paribas Investment Partners, Boston Common Asset Management, Calvert Investments, Highclere International Investors, PGGM, Scottish Widows Investment Partnership, Sparinvest Holdings SE, Threadneedle Investments, Trillium Asset Management and Walden Asset Management.

 

A company’s ability to identify and manage ESG issues has become a significant factor in shaping its financial performance. As a strategic initiative for businesses committed to integrating and disclosing a business strategy that takes into account the UN Global Compact’s 10 principles in areas of human rights, labour, environment and anti-corruption, participation sends a signal to investors that a company is alert to the business implications of ESG issues. To date, approximately 7,000 corporate signatories in 135 countries have committed to the implementation, disclosure and promotion of the 10 Global Compact principles, making it the largest voluntary CR initiative.

 

“Becoming a member of the UN-supported PRI has made us think differently about the way we invest on behalf of our clients, excluding numerous companies from our portfolios that have little regard for environmental, social or governance issues,” commented Ed Makin, ceo, Highclere International.

 

“Pirelli has been an active member of the UN Global Compact since 2004. By adopting its principles as the foundation for our environmental, social and governance policies, we have found that we are making a profound, positive impact not only on all our stakeholders, but on our bottom line as well,” said Marco Tronchetti Provera, chairman and ceo, Pirelli & C. SpA.