The 2021 PRI reporting cycle for investors is live as of 1 February – the deadline to report is 29 April 2021.
What is the UN PRI ?
The United Nations Principles for Responsible Investment (UN PRI), launched in 2006, now have over 3,000 signatories with more than $100 trillion in assets under management.
The PRI’s are a set of voluntary and aspirational principles that encourage ESG incorporation into sustainability investment practice, focused on asset owners, investment managers, and service providers.
The nice part of this is the concept is 360 degrees – everyone is included.
In 2021, as sustainability takes center stage in the corporate world, key figures continue to make stronger calls for ESG integration into finance. BlackRock CEO Larry Fink’s annual letter to CEOs emphasizes that sustainability is now essential to long term financial success (see link below).
The PRI’s are a way of demonstrating that sustainability is given adequate attention in investment decision-making and asks signatories to agree to the following six principles:
- We will incorporate ESG Issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices .
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptant and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
Through the UN PRI website, signatories submit annually on their progress regarding these six principles. Responses to all ‘core’ questions are publicly available and help stakeholders to assess investors ESG activities. Responses to the UN PRI have helped improve transparency, demonstrate best practice, and align signatories with growing demands for sustainability.
Why Become a Signatory?
Signing up the UN PRI shows stakeholders that sustainability and climate change are being taken seriously by your company.
As a signatory, a company is able to better show and share services and successes, internally and externally.
Furthermore, the UN PRI’s incorporation of Task Force on Climate-Related Disclosures’ (TCFD) recommendations means signatories are also aligned to TCFD, due to become mandatory in the UK by 2025.
Most major players across industries are already signed up to the Principles, promoting the standardization of reporting and industry-specific knowledge sharing.
The UN PRI have a powerful mission statement to which signatories align when they sign up:
By ensuring that organizations invest responsibly and create long-term value, the Principles can help benefit the societies and environments where organizations operate, and also assures stakeholders that ESG is being sufficiently incorporated into investment decisions.
How it works?
Applying to become a UN PRI signatory is a straight forward 3-step process.
First, gather the documents required including a declaration from the CEO or C-suite individual and complete an organizational chart explaining the companies structure.
Then, a 15 minute online application needs to be filled out giving basic company information.
Finally, the fee must be paid covering the period until 1st April when the next fee year starts.
As a signatory, companies complete an annual assessment between January to March. This assessment includes 3 compulsory modules as well as up to 7 business specific modules that are unlocked dependent on an organisations specific investment areas.
There is also an optional ‘Sustainability Outcomes’ module that is voluntary but gives organizations the opportunity to show off where they’re carrying out best practice.
Fees are based on AUM and can be found on the UN PRI website.
The deadline for submission is 29th April 2021.
How we can help
Our team have over 20+ years of corporate experience, technical expertise and a passion for helping businesses make a difference by completing their environmental, social and economic (ESG) performance.
The ESG PlayBook is the only solution that offers all the major frameworks in one platform.
Our platform has been designed and developed to offer a flexible and tailored delivery approach. Every company is different and will seek their own optimized sustainability reports.
Can We Help?
If you are interesting in learning more, feel free to contact us at ESG PlayBook.
We’d be happy to hear from you!