Strategy Plan for Next Three Years
The United Nations Principles for Responsible Investment (UN PRI) releases its strategy plan for the next three years, aimed at promoting the development of global responsible investment and improving the investment environment for signatories.
Over the past two decades, the United Nations Principles for Responsible Investment have collaborated with market participants to establish a global ecosystem for responsible investment. Currently, responsible investment strategies account for 50% of global investments and encourage businesses to incorporate environmental, social, and governance topics into their business operations and risk management.
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New Missions for UN PRI in Next Three Years
The United Nations Principles for Responsible Investment believes that an efficient and sustainable financial system is a necessary condition for long-term growth. Therefore, market participants need to implement the principles of responsible investment, establish a sound financial system, create good governance, integrity, and accountability mechanisms, and address regulatory and practical issues. The six principles of the United Nations Principles for Responsible Investment include:
- 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 acceptance 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.
The UN PRI has set two goals in its strategy plan for the next three years, namely to provide value to signatories in a rapidly developing responsible investment environment and to support signatories in playing an important role in sustainable financial systems.
Key Strategic Areas for UN PRI
In order to achieve the above goals, the United Nations Principles for Responsible Investment have developed the following four key strategic areas:
- Driving signal progress on RI while streamlining PRI mandatory reporting: The UNPRI will implement financial measures in the next three years, recognizing reporting frameworks across different jurisdictions and allowing signatories to simplify information disclosure and promote responsible investment practices. In the future, at least one-third of the signatories will incorporate ESG factors into sustainable investment pathways.
- Strengthening regional ecosystems in both mature markets and emerging and developing economies: The UNPRI will establish responsible investment ecosystems globally and collaborate with local sustainable finance associations to expand the scope of responsible investment in emerging markets. The asset management scale of future signatories will increase by an additional $10 trillion to $20 trillion.
- Amplifying signal impact by supporting and leading collaborative initiatives: The UNPRI will promote connections and cooperation among different stakeholders through a collaborative platform, and prioritize climate change and biodiversity areas. The signatories will cooperate through existing responsible investment initiatives and future newly established responsible investment initiatives.
- Strengthening the enabling environment for RI by influencing government and multilateral policy and financial market practices through influencing policies and market practices: The UNPRI will work closely with signatories to promote the development of responsible investment policies and regulations, and support signatories’ participation in multilateral policy-making. In the future, over 50% of signatories will support the development of sustainable financial policies and establish contacts with regulatory agencies in at least 15 key markets.
How to Implement the Strategy Plan for UNPRI
In order to achieve the strategy plan for the next three years, the United Nations Principles for Responsible Investment organize strategy plans to take action in the following areas:
- People and operations: The UNPRI will establish an efficient organization, improve operational efficiency, and continue to expand the geographical distribution of employees, strengthening the connection between employees and signatories.
- Long term funding: The UNPRI will consider distributing the costs among signatories equally and providing more value to signatories to meet the development of the responsible investment market.
- Strategic risks: In the process of formulating strategies, the UNPRI have considered regulatory, legal, operational, technical, financial, and personnel risks, and will continue to monitor and monitor related risks and evaluate them in the annual strategic review.
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