{"id":99,"date":"2018-04-01T12:08:31","date_gmt":"2018-04-01T16:08:31","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/?post_type=chapter&#038;p=99"},"modified":"2018-04-01T19:22:16","modified_gmt":"2018-04-01T23:22:16","slug":"99","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/chapter\/99\/","title":{"raw":"United Nations Principles for Responsible Investment  (PRI) and  ESG","rendered":"United Nations Principles for Responsible Investment  (PRI) and  ESG"},"content":{"raw":"<a href=\"https:\/\/www.unpri.org\/\">https:\/\/www.unpri.org\/<\/a>\r\n\r\nAs it says on the United Nation's website, the committee on PRI (Principles for Responsible Investment)\r\n<blockquote>\"We work to understand how environmental, social and governance (ESG) issues \u2013 such as<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/environmental-issues\/climate-change\">climate change<\/a>,<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/social-issues\/human-rights-and-labour-standards\">human rights<\/a><span>\u00a0<\/span>and<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/governance-issues\/tax-avoidance\">tax avoidance<\/a><span>\u00a0<\/span>\u2013 impact investments, and we support our international network of investor signatories in incorporating these factors into their investment and ownership decisions.\r\n\r\nThe PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.\"<\/blockquote>\r\n<a href=\"https:\/\/www.unpri.org\/\">https:\/\/www.unpri.org\/<\/a>\r\n\r\nAs is says on the United Nation's website, the committee on PRI (Principles for Responsible Investment)\r\n<blockquote>\"We work to understand how environmental, social and governance (ESG) issues \u2013 such as<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/environmental-issues\/climate-change\">climate change<\/a>,<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/social-issues\/human-rights-and-labour-standards\">human rights<\/a><span>\u00a0<\/span>and<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/governance-issues\/tax-avoidance\">tax avoidance<\/a><span>\u00a0<\/span>\u2013 impact investments, and we support our international network of investor signatories in incorporating these factors into their investment and ownership decisions.\r\n\r\nThe PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.\"<\/blockquote>\r\n<h1>What is responsible investment?<\/h1>\r\nhttps:\/\/www.unpri.org\/pri\/what-is-responsible-investment\r\n\r\n<span>Responsible investment is an approach to investing that aims to incorporate environmental, social and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns.<\/span>\r\n<h2 id=\"Why_invest_responsibly\">Why invest responsibly?<\/h2>\r\nThe global momentum around responsible investment is driven by:\r\n<ul>\r\n \t<li>recognition in the financial community that ESG factors play a material role in determining risk and return;<\/li>\r\n \t<li>understanding that incorporating ESG factors is part of investors\u2019 fiduciary duty to their clients and beneficiaries;<\/li>\r\n \t<li>concern about the impact of short-termism on company performance, investment returns and market behaviour;<\/li>\r\n \t<li>legal requirements protecting the long-term interests of beneficiaries and the wider financial system;<\/li>\r\n \t<li>pressure from competitors seeking to differentiate themselves by offering responsible investment services as a competitive advantage;<\/li>\r\n \t<li>beneficiaries becoming\u00a0increasingly active and demanding transparency about where and how their money is being invested;<\/li>\r\n \t<li>value-destroying reputational risk from\u00a0issues such as climate change, pollution, working conditions, employee diversity, corruption and aggressive tax strategies in a world of globalisation and social media.<\/li>\r\n<\/ul>\r\n<h2 id=\"What_are_environmental_social_and_governance_ESG_factors\">What are environmental, social and governance (ESG) factors?<\/h2>\r\nExamples of environmental, social and governance (ESG) factors are numerous and ever-shifting. They include:\r\n<h3 id=\"Environmental\">Environmental<\/h3>\r\n<ul>\r\n \t<li>climate change<\/li>\r\n \t<li>greenhouse gas (GHG) emissions<\/li>\r\n \t<li>resource depletion, including water<\/li>\r\n \t<li>waste and pollution<\/li>\r\n \t<li>deforestation<\/li>\r\n<\/ul>\r\n<h3 id=\"Social\">Social<\/h3>\r\n<ul>\r\n \t<li>working conditions, including slavery and child labour<\/li>\r\n \t<li>local communities, including indigenous communities<\/li>\r\n \t<li>conflict<\/li>\r\n \t<li>health and safety<\/li>\r\n \t<li>employee relations and diversity<\/li>\r\n<\/ul>\r\n<h3 id=\"Governance\">Governance<\/h3>\r\n<ul>\r\n \t<li>executive pay<\/li>\r\n \t<li>bribery and corruption<\/li>\r\n \t<li>political lobbying and donations<\/li>\r\n \t<li>board diversity and structure<\/li>\r\n \t<li>tax strategy<\/li>\r\n<\/ul>","rendered":"<p><a href=\"https:\/\/www.unpri.org\/\">https:\/\/www.unpri.org\/<\/a><\/p>\n<p>As it says on the United Nation&#8217;s website, the committee on PRI (Principles for Responsible Investment)<\/p>\n<blockquote><p>&#8220;We work to understand how environmental, social and governance (ESG) issues \u2013 such as<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/environmental-issues\/climate-change\">climate change<\/a>,<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/social-issues\/human-rights-and-labour-standards\">human rights<\/a><span>\u00a0<\/span>and<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/governance-issues\/tax-avoidance\">tax avoidance<\/a><span>\u00a0<\/span>\u2013 impact investments, and we support our international network of investor signatories in incorporating these factors into their investment and ownership decisions.<\/p>\n<p>The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.&#8221;<\/p><\/blockquote>\n<p><a href=\"https:\/\/www.unpri.org\/\">https:\/\/www.unpri.org\/<\/a><\/p>\n<p>As is says on the United Nation&#8217;s website, the committee on PRI (Principles for Responsible Investment)<\/p>\n<blockquote><p>&#8220;We work to understand how environmental, social and governance (ESG) issues \u2013 such as<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/environmental-issues\/climate-change\">climate change<\/a>,<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/social-issues\/human-rights-and-labour-standards\">human rights<\/a><span>\u00a0<\/span>and<span>\u00a0<\/span><a href=\"https:\/\/www.unpri.org\/esg-issues\/governance-issues\/tax-avoidance\">tax avoidance<\/a><span>\u00a0<\/span>\u2013 impact investments, and we support our international network of investor signatories in incorporating these factors into their investment and ownership decisions.<\/p>\n<p>The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.&#8221;<\/p><\/blockquote>\n<h1>What is responsible investment?<\/h1>\n<p>https:\/\/www.unpri.org\/pri\/what-is-responsible-investment<\/p>\n<p><span>Responsible investment is an approach to investing that aims to incorporate environmental, social and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns.<\/span><\/p>\n<h2 id=\"Why_invest_responsibly\">Why invest responsibly?<\/h2>\n<p>The global momentum around responsible investment is driven by:<\/p>\n<ul>\n<li>recognition in the financial community that ESG factors play a material role in determining risk and return;<\/li>\n<li>understanding that incorporating ESG factors is part of investors\u2019 fiduciary duty to their clients and beneficiaries;<\/li>\n<li>concern about the impact of short-termism on company performance, investment returns and market behaviour;<\/li>\n<li>legal requirements protecting the long-term interests of beneficiaries and the wider financial system;<\/li>\n<li>pressure from competitors seeking to differentiate themselves by offering responsible investment services as a competitive advantage;<\/li>\n<li>beneficiaries becoming\u00a0increasingly active and demanding transparency about where and how their money is being invested;<\/li>\n<li>value-destroying reputational risk from\u00a0issues such as climate change, pollution, working conditions, employee diversity, corruption and aggressive tax strategies in a world of globalisation and social media.<\/li>\n<\/ul>\n<h2 id=\"What_are_environmental_social_and_governance_ESG_factors\">What are environmental, social and governance (ESG) factors?<\/h2>\n<p>Examples of environmental, social and governance (ESG) factors are numerous and ever-shifting. They include:<\/p>\n<h3 id=\"Environmental\">Environmental<\/h3>\n<ul>\n<li>climate change<\/li>\n<li>greenhouse gas (GHG) emissions<\/li>\n<li>resource depletion, including water<\/li>\n<li>waste and pollution<\/li>\n<li>deforestation<\/li>\n<\/ul>\n<h3 id=\"Social\">Social<\/h3>\n<ul>\n<li>working conditions, including slavery and child labour<\/li>\n<li>local communities, including indigenous communities<\/li>\n<li>conflict<\/li>\n<li>health and safety<\/li>\n<li>employee relations and diversity<\/li>\n<\/ul>\n<h3 id=\"Governance\">Governance<\/h3>\n<ul>\n<li>executive pay<\/li>\n<li>bribery and corruption<\/li>\n<li>political lobbying and donations<\/li>\n<li>board diversity and structure<\/li>\n<li>tax strategy<\/li>\n<\/ul>\n","protected":false},"author":9,"menu_order":1,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[47],"contributor":[],"license":[],"class_list":["post-99","chapter","type-chapter","status-publish","hentry","chapter-type-standard"],"part":93,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/chapters\/99","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":6,"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/chapters\/99\/revisions"}],"predecessor-version":[{"id":142,"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/chapters\/99\/revisions\/142"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/parts\/93"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/chapters\/99\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/wp\/v2\/media?parent=99"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/pressbooks\/v2\/chapter-type?post=99"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/wp\/v2\/contributor?post=99"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/engineeringinsociety\/wp-json\/wp\/v2\/license?post=99"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}