Practical solutions for PRI signatories
Designed to align the goals of the institutional investor with the sustainable development objectives of the United Nations, the UN PRI has clearly succeeded in drawing support among the investment community.
But as signatories to a voluntary scheme, what can asset owners and asset managers do in concrete terms to promote the main goal of the PRI: to embed the idea of sustainability into investment management and encourage better corporate environmental, social and governance (ESG) practices?
And how can they provide concrete evidence of their implementation process for the PRI’s annual report on progress?
EIRIS PRI Toolkit
Recognising the challenges posed by committing to these principles, EIRIS has developed a range of products that offer practical solutions for investors looking to implement the UN PRI, in particular Principles 1, 2 and 3:
1) EIRisk is designed to help investors incorporate ESG issues into investment analysis and decision-making processes.
- EIRisk assesses companies’ risk exposure to ESG factors as well as their management response to categorise them into different levels of risk, making it easy for investors to identify leaders and laggards, as well as alert cases.
- Criteria include a broad range of ESG issues, taking into account each company’s impact and risk exposure as well as its performance.
2) Global Compact Engager helps investors identify companies that represent different levels of risk with regards to the principles of the UN Global Compact: from the leaders in terms of risk mitigation practices, to the companies accused of breaching UNGC principles.
- The tool produces ratings and scores that can help investors set priorities and goals for their engagement strategy, as well as detailed reports useful in engagement meetings.
- Criteria include ESG indicators for assessing a company’s policy, management systems and reporting practices on issues that mirror the UNGC principles, as well as EIRIS’ Convention Watch research that identifies and provides detailed assessments of alleged breaches of international norms and conventions.
3) Report Monitor helps investors identify leaders and laggards in terms of ESG reporting.
- Report Monitor grades companies based on the quality of their reporting practices, focusing on the issues that are material to the company’s sector and business activities.
- Criteria include environment, climate change, bribery, human rights, supply chain and stakeholder reporting – to reflect UN Global Compact issues.
Contact our client team to find out more about how the EIRIS PRI Toolkit can help you implemnt your commitments to the UN Principles for Responsible Investment.