The United Nations Principles for Responsible Investment (UN PRI)
What is the PRI?
The PRI is the world's leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
What are the Principles for Responsible Investment?
United Nations Principles for Responsible Investment (UN PRI) are based on accepted international conventions, which are targeted corporate investors. The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.¹
Schroders has been a signatory since 2007 and fully supports the PRI six principles. Below shows how we comply and the extent of external involvement.
1. We will incorporate ESG issues into investment analysis and decision-making processes
- Eleven strong ESG analyst team focused on integrating ESG across investment desks and asset classes.
- ESG policies for equities, fixed income and real estate.
- Our ESG specialists collaborate with over 200 equity and credit analysts across Schroders' global locations to identify the key ESG risks and opportunities.
- Joint company meetings between ESG, credit and equity analysts.
- Multi-sector and multi-region thematic research on key ESG trends to educate investors.
- Proprietary sector framework developed in collaboration between ESG, equity and credit analysts.
- Financial analysts trained in the incorporation of ESG issues. Research notes include an ESG section.
- All research shared on our global research platform.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices
- UK Stewardship Code Signatories.
- Voting at AGMs since 1998. Transparency over voting decisions.
- Specific programme of ESG engagement since 2000.
- In house database to track the impact of engagement.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- Active engagement with companies to encourage greater transparency.
- Participation in collaborative initiatives to improve disclosure standards.
4. We will promote acceptance and implementation of the principles within the investment industry
- Published client focused research aimed at educating clients on ESG research.
- Collaboration with other investors to promote and develop ESG principles and practices.
- Sponsorship and support of responsible investment initiatives, including hosting conferences, seminars and workshops.
- Submissions to regulators, trade associations, legislators and other bodies across regions on ESG issues.
- Trustee training and client education events on responsible investment and ESG trends.
5. We will work together to enhance our effectiveness in implementing the principles
- Active participation in industry networks such as the Asian Corporate Governance Association and the International Corporate Governance Network.
6. We will each report on our activities and progress towards implementing the principles.
- Responsible investment activities available in our quarterly and annual reports at: www.schroders.com/responsibleinvestment.
- Best practice case studies included in our reports and publications such as Schroders Investment Horizons.
¹ Source: https://www.unpri.org/about