Intelligent Investing #74 Glenn Leest, The Origins of ESG
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The Origins of ESG
What is PRI:
· Principles for Responsible Investment (PRI) is a set of six principles that provide guidance to investors on how to incorporate environmental, social, and governance (ESG) factors into their investment decisions. The PRI was founded in 2006 by a group of investors, and it now has over 4,000 signatories, which represent trillions of dollars in assets.
The Principles for Responsible Investment (PRI) has played a significant factor in the development of ESG in the following ways:
· Setting standards and guidelines: The PRI has developed a set of six principles that provide guidance to investors on how to incorporate ESG factors into their investment decisions. These principles have been widely adopted by investors and organizations around the world, and they have helped to standardize the way that ESG is measured and managed.
· Providing resources and support: The PRI provides a variety of resources and support to its signatories, including training, research, and networking opportunities. This support has helped investors to learn more about ESG and to develop the skills they need to incorporate it into their investment decisions.
· Advocating for ESG: The PRI advocates for responsible investment policies and practices at the international level. They work with regulators, policymakers, and other stakeholders to promote the integration of ESG factors into the financial system.
· Measuring and reporting: The PRI has developed a set of standards for measuring and reporting ESG performance. These standards help investors to assess the ESG performance of companies and investments, and they provide a common language for communicating ESG information.
· Building a community: The PRI has built a global community of investors who are committed to responsible investment. This community provides a forum for investors to share ideas, learn from each other, and collaborate on initiatives to promote responsible investment.
PRI 6 Principles
- Incorporate ESG factors into investment decisions: The PRI wants investors to consider ESG factors when making investment decisions, such as the environmental impact of a company's operations or the social impact of its products and services.
- Promote transparency and accountability: The
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