PRI launches report calling on asset owners to go further

On Thursday 17 March 2016 PRI launched a report calling on asset owners to do more to reflect ESG risks and opportunities in their investment beliefs and mandates.

How Asset Owners Can Drive Responsible Investment: Beliefs, Strategy and Mandates examines how asset owners can raise their responsible investment game by ensuring that the mandates they give to fund managers include requirements for analysing and reporting environmental, social and governance (ESG) factors.

The report makes a case for the need for asset owners to do much more to support a sustainable financial system, as asset owner implementation of responsible investment has a multiplier effect through the investment chain.

By launching the report, PRI is sending a message to leading investment managers, and other service providers, that they are pushing hard to create markets in responsible investment. It’s a clear sign to key stakeholders that the PRI is advocating for an aligned vision of ESG considerations between asset owners and fund managers.

Offering solutions to the barriers asset owners face when implementing responsible investment, a particular focus of the report is the implementation of responsible investment beliefs, strategy and mandates.

PRI finds mandates to be an ‘end-point’, as responsible investment mandates start by first developing beliefs and governance. The report provides suggestions of the types of clauses around ESG considerations that asset owners can include in their mandates to fund managers.

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