Investors Managing US$3 Trillion Encourage Participation in the UN Global Compact

(London, 27 March 2013) – A coalition of 34 institutional investors managing approximately US$3.3 trillion in assets are encouraging 1,900 companies, located in 44 countries, to consider joining the United Nations Global Compact as part of the “PRI for Rio” collaborative engagement. Enhancing corporate sustainability was high on the agenda of the 193 Member States that attended the UN’s Rio+20 Conference in Rio de Janeiro, Brazil in June 2012. Following the Rio+20 event, a group of PRI signatories launched PRI for Rio to further support the call for an increased focus on strategic sustainability among companies globally.

The investors supporting this engagement, who are all signatories to the UN-supported Principles for Responsible Investment (PRI), are based in Australia, Europe, North and South America. They include BNP Paribas Investment Partners, Boston Common Asset Management, Calvert Investments, Highclere International Investors, PGGM, Scottish Widows Investment Partnership, Sparinvest Holdings SE, Threadneedle Investments, Trillium Asset Management and Walden Asset Management. 

Investors across the globe are increasingly evaluating companies’ ability to address environmental, social and corporate governance (ESG) opportunities and challenges. A company’s ability to identify and manage ESG issues has become a significant factor in shaping its financial performance. As a strategic initiative for businesses committed to integrating and disclosing a business strategy that takes into account the UN Global Compact’s 10 principles in the areas of human rights, labour, environment and anti-corruption, participation sends a signal to investors that a company is alert to the business implications of ESG issues. To date, more than 7,000 corporate signatories in over 135 countries have committed to the implementation, disclosure and promotion of these principles, making it the world’s largest voluntary corporate sustainability initiative. 

The companies being invited to join the UN Global Compact were selected based on their inclusion in the FTSE All World Index. For the complete announcement and to review the invited companies, please visit the PRI website. 

About the Principles for Responsible Investment

The United Nations-supported Principles for Responsible Investment Initiative (PRI) is a network of international investors working together to put the six Principles for Responsible Investment into practice. The Principles were devised by the investment community. They reflect the view that environmental, social and corporate governance (ESG) issues can affect the performance of investment portfolios and therefore must be given appropriate consideration by investors if they are to fulfil their fiduciary (or equivalent) duty. The Principles provide a voluntary framework by which all investors can incorporate ESG issues into their decision-making and ownership practices and so better align their objectives with those of society at large. More than 1,100 asset owners and investment managers from more than 50 countries, managing combined assets under management of more than $32 trillion, are now signatories to the PRI.

About the PRI Clearinghouse

Established in 2006, the PRI Clearinghouse is the world’s leading platform for investors to engage collaboratively with companies on their disclosure, management and performance on environmental, social and governance (ESG) issues. It provides PRI signatories with a forum to share information about engagement activities they are conducting, or would like to conduct, with other investors, enabling them to pool their resources and influence. The Clearinghouse has hosted nearly 400 engagements for signatories on issues ranging from boardroom diversity and anti-corruption to carbon emissions reduction and water risk.

About the “PRI for Rio” Engagement

The UN Global Compact is a strategic initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. With more than 7,000 corporate signatories in over 135 countries, participation in the Global Compact initiative has become a critical indicator of a company’s ability to identify and manage environmental, social and governance (ESG) issues that are material to investors. To support further growth of the UN Global Compact, and reinforce that investors are taking note of corporate membership in business associations and similar organizations, this engagement is inviting 1,900 listed companies to consider joining the UN Global Compact. Thirty-four PRI signatories are involved in the PRI for Rio engagement.

Contact

Danielle Chesebrough
Principles for Responsible Investment
danielle.chesebrough@unpri.org