In the decade since the launch of the Principles for Responsible Investment (PRI), responsible investment has entered the mainstream. This document introduces some of the discipline’s main concepts and methodologies.
By formalising an investment process in a policy, asset owners differentiate emotions from facts when making investment decisions, keeping a relentless focus on performing in line with their investment strategy in an evidence-based manner.
Strategic asset allocation plays a fundamental role in determining long term returns and enabling asset owners to meet liabilities – in that sense the long term nature of issues such as climate change, demographics and resource depletion should make it an obvious place to start reviewing ESG themes and issues ...
An asset owner should ensure that a coherent set of expectations is communicated to agents acting on their behalf, and can align incentive structures with these expectations.
Tutorial 3, Identifying best practices in responsbile investment, is from the PRI’s Data Portal in practice: signatory insight and tutorials.