A powerful group of global investors has launched an initiative to call on almost 9,000 listed companies to sign-up to international standards on human rights, the environment and anti-corruption measures.
The 52 investors who manage around US$4.4 trillion in assets have written to companies in the MSCI World, FTSE All-World and IFC Emerging Markets Indices to ask them to sign the United Nations Global Compact, which is a set of 10 principles of corporate responsibility.
The investors are all signatories to the UN-backed Principles for Responsible Investment (PRI). They include investors based in the US, Europe, Australia and emerging markets.
The Principles for Responsible Investment was established by the United Nations Environment Programme Finance Initiative (UNEP FI) and the UN Global Compact, as a framework to help investors
achieve better long-term investment returns and sustainable markets
through better analysis of environmental, social and governance issues
in investment process and the exercise of responsible ownership
practices.
Donald MacDonald, Chair of the PRI initiative and Trustee of the BT Pension Scheme said,
"Institutional investors in general are looking for investments that offer good, long-term returns, especially in a financial climate currently marked by uncertainty. We believe investee companies that take account of environmental, social and governance issues are more likely to offer these returns. As current and potential shareholders in these companies we want to urge them to take action on these major issues.
"The UN Global Compact is an extremely important tool for helping companies to achieve long-term business success while also fulfilling society’s expectation that they should operate responsibly. It provides companies with a framework of widely accepted standards to use in their management of environmental, social and governance (ESG) issues. Participation in the UN Global Compact sends a strong signal to investors that companies are both alert to the business implications of ESG issues, and taking active steps to incorporate them in their strategy and risk management."
UNEP FI is a unique global partnership between UNEP and the private
financial sector that works closely with approximately 180 financial
institutions to develop and promote linkages between sustainability and
financial performance. Through regional activities, a comprehensive
work programme, training and research, UNEP FI carries out its mission
to identify, promote and realize the adoption of best environmental and
sustainability practice at all levels of financial institution
operations.
The full list of companies being approached can be found online.
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