Why and how investors should act on human rights

Last updated: 2020

This paper sets out how investors can ensure they respect human rights across all their investment activities, as defined by the UN and OECD.

Use this resource to:

  • Measure, assess and value: Understand the extent to which investors are facilitating human rights harm; the extent to which they could or should have known; and the quality of any mitigating steps.

Making voting count: principle-based voting on shareholder resolutions

Last updated: 2021

This paper outlines what voting principles are, why they are needed, how voting principles can align with Active Ownership 2.0 (the PRI’s framework for more effective stewardship). It also explains how voting principles can be developed and applied to govern shareholder resolutions.

Use this resource for the following Actions of Impact Management:

  • Implement: Develop and apply high-level principles to govern voting on shareholder resolutions.

A Legal Framework for Impact

Last updated: 2021

This legal review found that while there are differences across jurisdictions and investor groups, where investing for sustainability impact approaches can be effective in achieving an investor’s financial goals, the investor will likely be required to consider using them and act accordingly.

It also provides an extensive suite of options for policymakers wishing to facilitate investing for sustainability impact, including changing investors’ legal duties and discretions, such as allowing the pursuit of sustainability goals as long as financial return goals are prioritised, and a presumption in favour of investor collaboration in tackling sustainability challenges.

Use this resource to:

  • Strategy: Understand whether the law permits, encourages, or even requires investors to manage the sustainability outcomes of their investments.

Investment mandates: Embedding ESG factors, improving sustainability outcomes

Last updated: 2021

Informed by interviews with asset owners and investment consultants, and data on industry practice, this report outlines common approaches and challenges to incorporating ESG considerations and sustainability outcomes in new or existing investment mandates.

Use this resource to:

  • Strategy: Explore how and to what extent asset owners can consider ESG factors when developing and designing investment mandates. Understand common approaches and challenges to incorporating ESG considerations and sustainability outcomes in new or existing investment mandates.

Driving meaningful data: financial materiality, sustainability performance and sustainability outcomes

Last updated: 2020

A framework that incorporates financial materiality and sustainability performance calibrated to progress on sustainability outcomes. This resource also considers sources of data needed to complete this picture across entities such as companies, governments and global institutions and activities.

Use this resource to:

  • Identify: Identify current and forward-looking information that assesses the range of sustainable risks and opportunities.
  • Measure, assess and value: Assess and interpret a company’s sustainability performance and alignment in the context of long-term sustainability goals and thresholds.

Discussing divestment: Developing an approach when pursuing sustainability outcomes in listed equities

Last updated: 2022

This paper sets out how investors wanting to pursue sustainability outcomes may need to adjust how they make a divestment decision or formulate an overall approach to divestment.

Use this resource to:

  • Implement: Understand how to make a divestment decision or to formulate an overall approach to divestment in order to pursue sustainability outcomes.

Bridging the gap: How infrastructure can contribute to SDG outcomes

This discussion paper details the current approaches that infrastructure investors are adopting to consider the Sustainable Development Goals as part of their investment approaches.

Use this resource to:

  • Identify: Identify outcomes caused by, contributed to and linked to their infrastructure investors, in relation to the SDGs.
  • Implement: Understand the methods by which infrastructure investors can achieve desired SDG outcomes. Ensure that outcomes in line with the SDGs are integrated into infrastructure investment processes.

Active Ownership 2.0

Last updated: 2019

Active Ownership 2.0 is a framework for the more ambitious stewardship needed to deliver against beneficiaries’ interests and improve the sustainability and resilience of the financial system.

Use this resource for the following Actions of Impact Management:

  • Implement: Shape sustainability outcomes by engaging in more effective and assertive stewardship activities.

Advance: PRI stewardship initiative for human rights and social issues

Last updated: 2022

The overall objective of the Initiative is to advance human rights and positive outcomes for people through investor stewardship. The Initiative will primarily seek change through investors’ use of influence with portfolio companies. The following three expectations will be set for engagement focus companies:

  • Fully implement the UNGPs –the guardrail of corporate conduct on human rights
  • Align their political engagement with their responsibility to respect human rights
  • Deepen progress on the most severe human rights issues in their operations and across their value

Use this resource to:

  • Identify: Select the companies and sectors that investors can engage with, in support of the Initiative’s overall objectives. This includes identifying the sectors and companies where human rights and impacts are most severe.
  • Implement: Determine where investors within the Initiative can influence (through stewardship) sectors and companies, to advance respect for human rights.

An Introduction to Responsible Investment: Policy, Structure and Process

Last updated: 2019

Guidance on how an investor can develop a responsible investment policy.

Use this resource to:

  • Governance: Develop investment policies and incorporate sustainability considerations into the investment process.