Principles for Responsible Investment (PRI)

The UN-supported Principles for Responsible Investment (PRI) is the world's leading proponent of responsible investment, with over 5,300 signatories representing approximately US$121 trillion in assets under management, committed to incorporating ESG factors into investment and ownership decisions.

Launched in 2006 at the New York Stock Exchange, the PRI was developed by an international group of institutional investors reflecting the growing recognition that ESG issues can affect the performance of investment portfolios and that applying these principles may better align investors with broader objectives of society.

The Six Principles

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.

Reporting and Assessment

Signatories are required to report annually on their responsible investment activities through the PRI Reporting Framework. The framework assesses signatories across multiple modules covering investment and stewardship policy, listed equity, fixed income, real assets, private equity, and other asset classes. Signatories receive assessment scores and are subject to minimum requirements; those failing to meet minimum standards face delisting.

Influence on the Investment Industry

The PRI has been instrumental in mainstreaming ESG integration across the global investment industry. Its collaborative engagement initiatives, such as Climate Action 100+ (co-founded with other investor networks), have successfully pressured major emitters to set climate targets and improve disclosure. The PRI's stewardship guidance has influenced the development of national stewardship codes worldwide.

Further Reading

• PRI — Official website
• PRI Reporting Framework — Annual reporting requirements

Related Topics

• ESG Investing Overview
• Shareholder Activism & Engagement
• UN Principles for Responsible Investment