PRI update

Q1 2019

An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact
Executive summary

ORGANISATION Over the last 12 months, the PRI added 348 net new signatories, including 41 asset owners.
UPDATE In January the total signatory base reached 2,250 signatories, with over 400 asset owner
signatories.

The PRI Blueprint lays out our framework over 10 years, bringing responsible investors
BLUEPRINT
together to promote sustainable markets that contribute to a more prosperous world for
UPDATES
all. We are also pleased to announce two new initiatives to showcase leadership within the
PRI: the Leaders’ group and the PRI awards.

The PRI held successful climate events in Amsterdam, Zurich and Frankfurt, and attended the
RECENT COP 24 summit in Poland. The PRI’s CEO Fiona Reynolds delivered a speech at a meeting at
ACTIVITIES the G20 where she recommended that policymakers clarify a need for positive duties to
integrate ESG factors in the investment process.

Report launches include: Climate change and the just transition: a guide for investor action;
TOOLS & Implementing the TCFD recommendations for oil and gas methane disclosure; the French
SIGNATORY roadmap for sustainable finance.
PARTICIPATION

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Contents

▪ Organisation update

▪ Blueprint/PRI initiatives

▪ Recent activities

▪ Appendix

This presentation is being provided to you by PRI Association (“the PRI”) and its subsidiaries for information purposes only. The presentation is
incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by the PRI. No reliance may be placed on
its accuracy or completeness. Neither the presentation, nor any of its contents, may be reproduced, or used for any other purpose, without the prior
written consent of the PRI. PRI Association is incorporated in England & Wales, registered number 7207947 and registered at 25 Camperdown Street,
London E1 8DZ.

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 PRI governance
2018 and 2019 PRI Board elections

Four PRI Board members were elected in 2018 and an additional asset owner position will be up for election in 2019.

CHAIR DIRECTORS ELECTED BY ASSET OWNERS

Martin Skancke Angela Emslie Eva Halvarsson Hiromichi Mizuno Renosi Mokate Laetitia Tankwe Xander den Uyl Elections for one
Independent HESTA AP2 (Sweden) GPIF (Japan) GEPF (South Africa) Ircantec (France) ABP (Netherlands) asset owner
Term limit: 2020 (Australia) Term limit: 2019 Term limit: 2019 Term limit: 2020 Term limit: 2021 Term limit: 2021 position
Term limit: 2021

DIRECTORS ELECTED BY ASSET OWNERS PERMANENT ADVISORS

Wendy Cromwell Tycho Sneyers Peter Webster Lise Kingo Eric Usher
Wellington LGT (Switzerland) Vigeo Eiris UN Global UNEP FI
Management (US) Term limit: 2020 (France) Compact
Term limit: 2021 Term limit: 2019

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 PRI staff update and new joiners this year
Adding to a global team of over 130 professionals

Americas Continental Europe Northern Europe & MEA Australasia

Chris Fowle – Director of the Marie Luchet – Director of Anastasia Guha – Director of Matthew McAdam– Director of
Americas, Signatory Relations Continental Europe, Signatory Northern Europe and MEA, AsiaPac, Signatory Relations
Relations Signatory Relations

Brazil (São Paolo) UK, HQ (London) Spain (Madrid)

Marcelo Seraphim – Head of Brazil (Q3
2018)
Colombia (Medellin)
Eduardo Atehortua - Head of Latin
America ex-Brazil (Q2 2018)
Athanasia Karananou – Head of Governance (Q3 2018)
Elena Espinoza - Manager, Social Issues (Q3 2018)
Simon Whistler – Snr Manager, Real Assets (Q3 2018)
Melissa Ginsburg – Head of Signatory Relations
Operations (Q2 2018)
Kaori Shigiya – Head of SDGs (Q2 2018)
Antonio Santoro – Head of Southern
Europe (Q2 2018)
South Africa (Johannesburg)
Adrian Bertrand (maternity cover) –
Head of Africa and Middle East (Q1 2019)

*Since January 2018

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More than 2,200 investors worldwide
Have adopted the Principles for Responsible Investment

Benelux: Nordic:
157 (+19) 204 (+23)

UK & Ireland:
379 (+87)
CEE & CIS:
Canada: France: 14 (+2)
197 (+22)
122 (+21) Germany, Austria & China:
Southern Europe:
101 (+26)
Switzerland: 20 (+13)
US: 178 (+24)
4241 (+762)
Japan:
67 (+7)
Middle East: Rest
6 (-2) of Asia:
Latin America
(ex. Brazil): 74 (+12)
18 (+8) Brazil: Africa:
49 (-3) 82 (+4) Australia & NZ:
162 (+10)
1: As of 1 January 2019
2: Net new signatories over past 12 months

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Signatory growth over the last 12 months

346
NEW SIGNATORIES (NET)
NEW SIGNATORIES

ASSET OWNERS
INVESTMENT MANAGERS
SERVICE PROVIDERS

41
NEW ASSET OWNERS

82

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Contents

▪ Organisation update

▪ Blueprint/PRI initiatives

▪ Recent activities

▪ Appendix

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The Blueprint vision

Responsible investors
• Empower asset owners
• Support investors incorporating ESG issues
• Create an industry of active owners
• Showcase leadership and increase accountability
• Convene and educate responsible investors

Sustainable markets
• Challenge barriers to a sustainable financial system
• Drive meaningful data throughout markets

A prosperous world for all

• Champion climate action
• Enable real-world impact aligned with the SDGs

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Responsible investors
Showcase leadership

Leaders’ Group
▪ Identifying leading investor signatories in specific predefined areas; each year
will focus on a different topic from our Blueprint for responsible investment
▪ 2019 will focus on Asset owners’ selection, appointment and monitoring of
external managers
▪ Scores will be taken from a variety of modules of signatories’ 2019
Assessment Reports

PRI awards
▪ Recognising individually excellent projects conducted by signatories of all
sizes, specialisms and levels of development
▪ Signatories will be invited to nominate projects on: ESG incorporation, active
ownership, ESG research and real-world impact
▪ Award for a project by a signatory based in an emerging market; this will be
selected from qualifying entries to the other categories
▪ Nominations open in Q1 of 2019

Results will be announced in September 2019 at PRI in Person in Paris

See https://www.unpri.org/leadership for videos and more information, or contact leadership@unpri.org.

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Reporting 2019 – now open!

The deadline for submitting your PRI report is 1 April 2019

2019 Reporting Framework - new this year:
▪ Revised active ownership (LEA) module
▪ Revised TCFD questions based on feedback. The climate indicators will remain voluntary in
2019 and will not be assessed
▪ New voluntary hedge funds module

Watch our new reporting tutorial videos:

▪ Reporting for investors
▪ Reporting for service providers
▪ How to navigate the reporting tool
▪ Finding reporting resources on our website

To watch the videos, please visit https://www.unpri.org/reporting

Online support
E-mail support Phone support
www.unpri.org/reporting
reporting@unpri.org +44 (0) 20 3714 3187

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Responsible investors
Increase accountability

A minimum requirement process is in effect for the 2018 IM and AO reporting cycle

Minimum signatory requirements

▪ Investment policy that covers the firm’s responsible investment (RI) approach
▪ Internal/external staff responsible for implementing RI policy
▪ Senior-level commitment and accountability mechanisms for RI implementation

Signatories that do not meet the criteria are being informed privately; delisting will only be as a last
resort following unsuccessful engagement over the two-year period.

More information including accountability FAQs and consultation responses can be found
www.unpri.org/signatories/increasing-accountability

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Reporting framework review
Identifying the gaps in signatory experience of reporting process and outputs, and proposing solutions

CONSULTATION REVIEW IMPLEMENTATION

Text here
Launch of
Signatory Review and revised
survey further Reporting
consultation consultation Framework for
2021

April - May September PRI in January

February – April
2019 Person 2019 2021
2019

Themes covered: Workshops and roundtables Sessions on

• The reporting process in local markets to present the Reporting
• The reporting outcomes first results of survey Framework
• Assessment consultation and gather development
• Outcomes-based further feedback
reporting and the SDGs

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 Sustainable markets
PRI policy engagement priorities in 2019

Clarify that investor duties require ESG integration, and support

the EU taxonomy on sustainability activities.

Align investment
frameworks with the
ecological civilisation plan.

Protect shareholder
rights and improve
corporate ESG
disclosure.

The PRI works with policy makers, regulators, investors and stakeholders to improve the sustainability of the financial system and address
systemic market risks through policy change. Focus areas of policy reform are pension fund ESG integration requirements, stewardship
codes, corporate ESG disclosure requirements and alignment of policy frameworks with government sustainability commitments, such as
the Paris climate agreements and the SDGs.

To join the PRI’s Global Policy Reference Group, or to sign up to our monthly policy newsletter, please contact policy@unpri.org.
For more details on the PRI’s policy work, including responses to policy consultations, visit https://www.unpri.org/sustainable-markets.

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 A prosperous world for all
Climate action – possible actions for investors and accompanying PRI tools

Investment ▪ Investor guide: How to invest in the low-carbon economy

▪ Collaborative investor engagement: Climate Action 100+,

Corporate Investor Agenda
engagement ▪ Investor guides: Climate change and the just transition,
Corporate climate lobbying

▪ Investor guides: Asset owner guide to the TCFD

Investor recommendations, Oil and gas methane disclosure
disclosure ▪ Climate scenario analysis tools directory
▪ TCFD-aligned climate change indicators in PRI reporting

Policy
▪ The Inevitable Policy Response to climate change
advocacy

These four areas are defined by the Investor Agenda, a global investor platform set up by
investors to tackle climate change of which PRI is a co-founder.

See https://www.unpri.org/climate-change or contact climate@unpri.org for more information.

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A prosperous world for all
What’s new on SDGs

THE SDG STARTER KIT SDG RESOURCES

Primer on SDGs: SDGs in active ownership:

a short introduction to the SDGs, a paper setting out the case for
clarifying what they add to ESG. SDG engagement, what it can
add to existing practices and
how investors can incorporate
SDG investor checklist: the SDGs into active ownership.
an online questionnaire that
investors can use to assess
themselves on their progress to SDGs in active ownership
incorporate the SDGs into their case studies:
investment process. practical case studies by
investment managers on how
they incorporate the SDGs in
their engagement approach.

To find out more about the PRI’s SDG programme visit https://www.unpri.org/sdgs or contact sdgs@unpri.org.

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Contents

▪ Organisation update

▪ Blueprint/PRI initiatives

▪ Recent activities

▪ Appendix

17
10 – 12 September 2019
Palais des Congrès de Paris

We encourage you to register early to secure your place for the next PRI in Person.
Register your interest via our website www.unpri.org/Paris2019 to be notified as soon as
registration opens in Q1 2019.

For more information visit:

www.unpri.org/Paris2019
or contact events@unpri.org

Watch PRI in Person 2018 highlights

https://www.unpri.org/SanFran2018

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Other new publications

CLIMATE CHANGE AND THE JUST TRANSITION: A GUIDE FOR INVESTOR

ACTION (NOVEMBER 2018)
A ‘just transition’ for workers and communities as the world’s economy responds to climate change
was included as part of the 2015 Paris Agreement. This guide sets out how investors can pursue the
goal of a just transition as part of their core operating practices.

WHY AND HOW INVESTORS CAN RESPOND TO INCOME INEQUALITY

(OCTOBER 2018)
Institutional investors are increasingly realising that income inequality—the gap in income and wealth
between the very affluent and the rest of society—has become one of the most noteworthy
socioeconomic issues of our time.

THE SHAREHOLDER PROCESS, ESG INTEGRATION AND PROXY ADVICE

IN THE US (OCTOBER 2018)
This briefing provides an update for signatories on legislative and regulatory proposals under
discussion in the US regarding the shareholder voting process, ESG integration and the role of
proxy advisory firms.

IMPLEMENTING THE TCFD RECOMMENDATIONS FOR OIL AND GAS

METHANE DISCLOSURE (OCTOBER 2018)
This paper provides guidance on the risks and opportunities of methane, recommended disclosures
across TCFD’s four-part structure, and real-world examples of what methane reporting looks like
against these four categories.

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 What we’ve done
Q1 2018
PRI Minimum standards process
begins
• Asset owner investment
Investment strategy guide
Practices • Primer on RI in Infrastructure
• Bondholder engagement guide
• US materiality study
Policy • Investor duties and ESG
integration in China
• Practical guide to active
Engagements ownership in listed equity
• Investor guide on water
risks in agri supply chains
• Mandatory reporting for
Reporting & Service Providers
Assessment • Active ownership &
assessment snapshot report
Signatory • Francophone Programme
Relations launched
• Signatory base exceeds 1,900
Q2 2018
Asset owner consultation
(link to survey)
• Asset owner selection guide
• ESG in credit ratings report: part 2
• Private equity monitoring guide
• Asset owner guide to TCFD
• Investing in low-carbon guide
• Primer on blockchain
• Climate lobbying guide
• Briefing on cobalt
• Corporate tax guide
• Confidence building measures
paper
• Signatory base exceeds 2,000
Q3 2018
Annual Report
(link to report)
• Impact investing market map
• CFA report on case studies of
ESG
• Infrastructure DDQ
• PACTA
• Ireland roadmap
• • The shareholder voting
Ohio roadmap
• ERISA study
• Inevitable Policy Response
• Cyber security guide
• Human Rights and the
extractives industry
• 2018 reports available on Data
Portal
• Data Portal webinar
• Climate Snapshot report
• Signatory base exceeds 2,100
Q4 2018
Asset owner signatory base
exceeds 400
• Private Equity snapshot report
• France roadmap
process, ESG integration and
proxy advice in the US
• Methane TCFD guide
• Climate change and the just
transition: a guide for investor
action
• 2019 Reporting Framework
available for download
• Service provider snapshot
• Signatory base exceeds 2,250
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Looking ahead in 2019

Launches planned Q1 / Q2 2019

Launch of PRI 2019 Reporting Cycle &
PRI Consultation on Reporting Framework

Investment • Hedge fund guide (part 2) • CFA PRI report on ESG in EMEA, APAC
• SDG starter-kit
Practices • Primer on RI in forestry
• ESG in credit ratings report: part 3 • ESG integration guide for sovereign debt investors
• RI in private debt report • Private equity report on progress
• Private markets DDQ

Policy • California fiduciary duty roadmap

• Investor expectations statements on deforestation in soybean supply chains, sustainable

Engagements palm oil and responsible sourcing of cobalt
• Outcomes document for engagement on labour practices in agricultural supply chains

• Private equity snapshot report

Reporting &
Assessment

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ESG engagements
Engagements coordinated by the PRI *Open to join

Environmental ▪ Climate Action 100+ * ▪ Deforestation: cattle and soy supply chains

▪ Water risks phase 2 ▪ Methane

▪ Oil and gas transition ▪ Investor working group on sustainable palm oil

Social ▪ Responsible sourcing of cobalt

▪ Labour practices in agricultural supply chains phase 2

Governance
▪ Cyber security ▪ Corporate tax responsibility

For more information contact collaborations@unpri.org.

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Contribute to the PRI’s work programmes
Recently formed PRI working groups and advisory committees

*Open to join

▪ Private Equity Advisory Committee

Investment ▪ Infrastructure Advisory Committee and SDGs in Infrastructure Working Group
Practices ▪ Sovereign Working Group
▪ Sub-sovereign Working Group * (contact anna.georgieva@unpri.org)

▪ Global Policy Reference Group (contact policy@unpri.org)

Policy ▪ Sustainable Financial System Advisory Committees: Investment Consultant
Services Review, Macro Economic Risks

ESG
▪ ESG Engagements Advisory Committee
Engagements

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 PRI Team in the US

Signatory
Relations
NAME: Chris Fowle
US team TITLE: Head of Americas
NAME: Carol Jeppesen
TITLE: Head of US
NAME: Ophir Bruck
TITLE: US Network Manager
NAME: Saumya Mehrotra
TITLE: Associate
Email: chris.fowle@unpri.org Email: carol.jeppesen@unpri.org Email: ophir.bruck@unpri.org Email: saumya.mehrotra@unpri.org
New York, NY New York, NY Oakland, California New York, NY

Policy PRI
US team Academy

NAME: Heather Slavkin Corzo NAME: Colleen Orr NAME: Terry Thornton
TITLE: Head of US Policy TITLE: Policy Analyst TITLE: Head of Learning
Email: heather.slavkin.corzo@unpri.org Email: collen.orr@unpri.org Email: terry.thornton@unpri.org
Washington DC Washington DC Washington DC

24
Contents

▪ Organisation update

▪ Blueprint/PRI initiatives

▪ Recent activities

▪ Appendix

25
 PRI services
What the PRI does for you

YOUR AIMS

INCORPORATE THE
PRINCIPLES INTO KEEP UP WITH
CHALLENGE MEASURE AND STAY IN TOUCH WITH NETWORK AND INSIGHTS, EVIDENCE
YOUR INVESTMENT BEING AN COMMUNICATE THE PRI AND YOUR EXCHANGE BEST
BARRIERS TO ESG AND BESTPRACTICE
PROCESS ACTIVE OWNER PROGRESS PEERS PRACTICES
INCORPORATION

PRI SERVICES

Active ownership Regulatory insights Globally

recognised RI Active, regional Online RI training
Asset class and toolkits and the and tools to PRI in Person and
reporting PRI-signatory courses and the
thematic support Collaboration support policy local events
framework and relationships Academic Network
Platform action
PRI Data Portal

* Access to PRI Academy courses are not included in the annual PRI membership fee

26
 Asset owner resources
STRATEGY
ASSET OWNER STRATEGY
GUIDE: HOW TO CRAFT AN
INVESTMENT STRATEGY
(MARCH 2018)
Supports asset owners, including their
board of trustees and executives, in
developing and formulating their
investment strategy for a rapidly
changing investment landscape.
POLICY
INVESTMENT POLICY:
PROCESS & PRACTICE – A
GUIDE FOR ASSET OWNERS
(OCTOBER 2016)
Provides a concise and
implementable framework to support
asset owners in revising their
investment policy in order to
incorporate long-term factors in their
investment chains.
MANAGER SELECTION
ASSET OWNER MANAGER
SELECTION GUIDE (MARCH
2018)
Aims to support asset owners in
making informed decisions about
the managers they select and the
specific funds in which they want to
invest. This includes guidance on
asset owner requirements on active
ownership in the selection process.
27
Investment practice resources
A PRACTICAL GUIDE TO ESG
INTEGRATION FOR EQUITY
INVESTING (SEPTEMBER 2016)
The guide contains information and case
studies on integration techniques that
apply to investment strategies including
fundamental, quantitative, smart beta and
passive investment.
ESG MONITORING, REPORTING
AND DIALOGUE IN PRIVATE
EQUITY (JUNE 2018)
The aim of this guidance is to support an
exchange of information, underpinned by
dialogue, that will keep LPs informed
about the ESG characteristics of their
private equity investments and the
responsible investment practices of their
investment managers.
FIXED INCOME INVESTOR GUIDE
(OCTOBER 2014)
Written by fixed income practitioners from
around the world, the PRI’s Fixed Income
Case Study series highlights examples of
interesting and innovative approaches to
integrating ESG, negative and positive
screening, thematic investment and
engagement across the asset class.
ESG, CREDIT RISK AND
RATINGS (PART 2) - EXPLORING
THE DISCONNECTS (JUNE
2018)
The PRI ESG in Credit Ratings Initiative
is facilitating system-level change. The
first of its kind at this scale, credit
practitioners from investors and credit
rating agencies (CRAs) are uniting to
discuss environmental, social and
governance (ESG) topics.
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 Active ownership resources
INTRODUCTORY GUIDE TO
COLLABORATIVE ENGAGEMENT
(SEPTEMBER 2013)
This guide is designed to provide a
practical introductory guide on engaging
collaboratively with listed companies on
environmental, social and governance
(ESG) issues.
Find out more on https://collaborate.unpri.org/collaborate.
A PRACTICAL GUIDE TO
ACTIVE OWNERSHIP IN LISTED
EQUITY (FEBRUARY 2018)
Guides investors on their
responsibilities to conduct, request and
monitor effective engagement and
proxy voting activities.
ESG ENGAGEMENT FOR
FIXED INCOME INVESTORS
(APRIL 2018)
Guidance on how fixed income
investors might structure their
engagement strategies as an
integral part of their approach to RI
29
ESG issues guides

ENVIRONMENTAL SOCIAL GOVERNANCE

Implementing TCFD Human rights and Evaluating and

recommendations the extractives engaging on corporate
for oil and gas industry (July 2018) tax transparency: an
methane disclosure investor guide (May
(October 2018) 2018)

Climate change and the just

The inevitable policy response to
climate change (September 2018)
Growing water risk resilience: an
investor guide on agricultural
supply chain (March 2018)
transition: a guide for investor
action (October 2018)
Drilling down into the cobalt
supply chain: how investors can
promote responsible sourcing
practices (April 2018)
Investor-company dialogue on
cyber security: five emerging
findings (Sep. 2018)
Engaging on anti-bribery and
corruption (June 2016)

See all investor guides on ESG issues at: https://www.unpri.org/esg-issues.

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 Policy and regulation resources
GLOBAL GUIDE TO
RESPONSIBLE INVESTMENT
REGULATION (SEPTEMBER 2016)
The report looks at almost 300 pieces of
regulation covering pension fund rules,
stewardship codes and corporate
disclosure rules, finding a strong
correlation between responsible
investment regulation and better ESG
risk management by companies.
THE CASE FOR INVESTOR
ENGAGEMENT IN PUBLIC
POLICY (NOVEMBER 2014)
Based on interviews with an international
group of investors, this report analyses
how investors can effectively engage with
policymakers. It proposes a five-step
approach to better integrate investor
perspectives on ESG factors into the
public policymaking process.
FIDUCIARY DUTY IN THE 21ST
CENTURY (SEPTEMBER 2015)
Based on interviews with investors,
industry associations, lawyers and
policymakers in eight countries. The
report concludes that failing to
integrate long-term investment value
drivers, including ESG issues, in
investment practice is a failure of
fiduciary duty.
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