Disclosure Frameworks

UN Principles for Responsible Investment (PRI)

The UN Principles for Responsible Investment - known as UN PRI - can have a huge impact on investor decision making and ESG factors. Here, Minimum discusses UN PRI and its application across organizations. 

What is the UN PRI?

The United Nations Principles for Responsible Investment (UN PRI) is a set of global principles and a network of international investors working together to incorporate environmental, social, and governance (ESG) factors into their investment practices. UN PRI was launched in 2006 and is supported by the United Nations. Its goal is to encourage responsible and sustainable investment practices among its signatories.

Who are the signatories?

The United Nations Principles for Responsible Investment (UN PRI) has a large and diverse group of signatories. These signatories include a wide range of institutional investors, asset managers, and other financial organizations from around the world. Some example of the types of signatories to the UN PRI include: 

  • Pension Funds - Many public and private pension funds have signed on, representing the retirement savings of millions of individuals.
  • Asset Managers - Numerous asset management companies, both large and small, have become signatories.
  • Endowments and Foundations - Educational institutions, charitable foundations, and other endowments are among the signatories.
  • Insurance Companies - Some insurance companies have also committed to the principles.
  • Banks - Certain banks and financial institutions are signatories.
  • Sovereign Wealth Funds - Several sovereign wealth funds, representing national assets, have joined.
  • Consultants and Service Providers - Organizations providing financial services and consulting in the ESG space are also signatories.
  • Academic Institutions -  Some academic institutions involved in research and education related to responsible investment have signed on.
  • Individual Investors - Although less common, individual investors have also become signatories.

By signing on to these principles, investors commit to integrating ESG considerations into their investment strategies and decision-making, engaging with companies on ESG issues, promoting transparency and disclosure of ESG information, and collaborating with other investors to drive positive change in the investment industry.

What are the principles?

The United Nations Principles for Responsible Investment (UN PRI) consist of six key principles that signatories commit to as part of their responsible investment practices. These principles are designed to encourage the integration of environmental, social, and governance (ESG) factors into investment decision-making and ownership practices. These six principles are:

Principle 1

Incorporate ESG into investment analysis

Signatories commit to incorporating ESG factors into their investment analysis and decision-making processes. This involves considering how ESG issues may impact investment performance and risk.

Principle 2

Active ownership

Signatories commit to being active owners of the assets in which they invest. They work to ensure that ESG issues are considered in their ownership policies and practices. This includes engagement with companies to encourage responsible ESG practices.

Principle 3

Seek ESG disclosure

Signatories commit to seeking appropriate disclosure on ESG issues by the entities in which they invest. This encourages transparency and the availability of relevant ESG information for investment decisions.

Principle 4

Promote acceptance of the principles

Signatories pledge to promote the acceptance and implementation of the UN PRI within the investment industry. They encourage other investors to adopt these principles and promote responsible investment practices.

Principle 5

Collaborate with others

Signatories recognize that collaboration is essential to enhance the effectiveness of implementing the principles. They work together with other investors and relevant stakeholders to address common ESG challenges and drive positive change in the industry

Principle 6

Report on progress

Signatories commit to reporting on their activities and progress in implementing the principles. This transparency is essential for accountability and for sharing best practices within the UN PRI network.

These principles are intended to guide investors in integrating ESG considerations into their investment strategies and practices, with the aim of contributing to more responsible and sustainable investment decisions and fostering positive change within the financial industry.

How can businesses adopt the principles?

Once entities have become signatories to the UN PRI, it’s important that steps are put into practice to adopt the principles. First and foremost, in line with Principle 1, businesses must incorporate ESG considerations into any decision making process. They should conduct comprehensive ESG assessments to identify areas for improvement, set clear sustainability objectives, and establish ESG policies and strategies. 

Companies can align their governance structures with PRI principles by ensuring transparency, ethical decision-making, and diversity on their boards. Furthermore, businesses can work on improving their environmental impact by reducing carbon emissions and resource consumption. 

Finally, regularly reporting ESG progress to investors and the public is essential, demonstrating a commitment to transparency and accountability. 

How Minimum can help

Minimum can help organizations to understand their existing carbon output, and create plans to mitigate climate related risks in the future.  Our Emissions Data Platform seamlessly collects and processes emissions data from every corner of your organization and supply chain - no matter the format. Making it the ideal platform for emissions audits and all-round business intelligence. 

Learn more about how Minimum's Emission Data Platform can help to power you all the way to Net Zero today.

FAQs about UN Principles for Responsible Investment (PRI)

What is the meaning of PRI in relation to ESG?

PRI provides a framework for investors to incorporate ESG factors into their investment decisions and ownership practices. The initiative encourages investors to consider the environmental, social, and governance issues of the companies they invest in and to promote sustainable and responsible business practices.