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Principles for Responsible Investment - UNEP-FI

  • 05.05.2006
Global Launch of Principles for Responsible Investment

The Principles for Responsible Investment (PRI) were launched in New York on 27th April and in Paris on 4th May 2006. The PRI are the results of a workgroup composed of experts and international financial directors, under the auspices of UNEP-FI (the United Nations Environment Program Financial Initiative, promoting the adoption of best environmental practices by financial professionals,) and Global Compact.

With 18 new members, PRI signatories manage a total of four thousand billion Euros in banking assets.

For U.N. Secretary-General Kofi Annan, "these Principles grew out of the understanding that while finance fuels the global economy, investment decision-making does not sufficiently reflect environmental, social, and corporate governance considerations - or put another way, the tenets of sustainable development."

What are the PRI?

The PRI provide a framework which goes beyond the field of Socially Responsible Investment. They concern all financial assets and recognize the importance of environmental, social, and governance issues (ESG) in this sector with regard to corporate responsibility and portfolio profitability: ‘we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios to varying degrees across companies, sectors, regions, asset classes and through time.'

The PRI comprises six main principles as well as around thirty areas for possible action:

=> Incorporate ESG issues into investment analysis and decision-making processes
=> Actively incorporate ESG issues into our ownership policies and practices
=> Seek appropriate disclosure on ESG issues by the entities in which we invest
=> Promote acceptance and implementation of the Principles across the investment industry
=> Work together to improve our effectiveness in implementing the Principles
=> Each report on our activities and progress towards implementing the Principles

BNP Paribas Asset Management a PRI signatory

Member of UNEP-FI since May 2004, BNP PAM has signed up to PRI. This initiative demonstrates their long-term commitment to sustainable development and socially responsible investment. In this context, BNP PAM participates in other organizations, notably the Institutional Investors Group on Climate Change (IIGCC), the Carbon Disclosure Project and the Enhanced Analytics Initiative (EAI), of which it is a founding member. BNP PAM has a team dedicated to this, offering a complete range of products systematically integrating sustainable development and corporate governance issues.