The Principles for Responsible Investment (PRI) has launched a new guide - Converging on climate lobbying: aligning corporate practice with investor expectations - to help investors engage with portfolio companies on their direct and indirect lobbying practices related to climate policy.

Corporate engagement on climate policy plays a critical role in helping governments create practical climate policy solutions. However, it is a double-edged sword.

Negative and resistant corporate interest, often represented by third-party organisations, can hinder policy action that aims to mitigate the impacts of climate change. This can cause a number of issues for investors including legal and reputational risks, and long-term portfolio volatility.

In response to this, the PRI launched a collaborative engagement and an investor expectations statement in 2015, focusing on the direct and indirect policy engagement practices of companies on climate issues.

Converging on climate lobbying: aligning corporate practice with investor expectations provides:

  • an overview of why investors should engage on this topic;
  • suggested questions to ask companies;
  • examples of good and poor corporate practice; and
  • PRI signatory case studies showcasing investor action.

“We believe that companies should be consistent in their public policy engagement,” said Kris Douma, director of investment practices and engagements at the PRI. “They should also ensure any engagement conducted on their behalf is aligned with their own organisational views and objectives.”

The full report in PDF format can be found here.