UN Principles for Responsible Investment (PRI)
Definition of 'UN Principles for Responsible Investment (PRI)'
The six principles of the PRI are:
1. **Integrate ESG factors into investment analysis and decision-making processes.** Investors should incorporate ESG factors into their investment analysis and decision-making processes, alongside financial factors, in order to identify and manage risks and opportunities.
2. **Adopt a long-term investment horizon.** Investors should adopt a long-term investment horizon, taking into account the long-term impact of their investments on ESG factors.
3. **Promote active ownership.** Investors should use their ownership rights to promote responsible corporate behavior.
4. **Seek to maximize the positive impact of investments.** Investors should seek to maximize the positive impact of their investments, while minimizing the negative impact.
5. **Advocate for sustainable investment.** Investors should advocate for sustainable investment, both within their own organizations and in the wider investment community.
6. **Work together to achieve impact.** Investors should work together to achieve impact, sharing knowledge and best practices, and collaborating with other stakeholders.
The PRI is a voluntary initiative, and there is no requirement for investors to sign up to the principles. However, over 3,000 investors with over $100 trillion in assets under management have signed up to the PRI, making it the largest global initiative of its kind.
The PRI has been praised for its role in raising awareness of ESG investing and encouraging investors to incorporate ESG factors into their investment decisions. However, it has also been criticized for being too voluntary and for not having a strong enforcement mechanism.
Despite these criticisms, the PRI remains a significant force in the global sustainable investment movement. It is helping to shape the way that investors think about ESG factors and is encouraging them to take a more active role in promoting sustainable development.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.