If we are to scale up and maximise the contribution that long-term investors can make to the public policy process, both long-term investors and policymakers need to raise their game.
We offer the following recommendations to investors and policymakers.
Actions for investors
Long term investors should prioritise public policy engagement
- Commit resources to public policy engagement.
- Construct a strategic process for policy engagement.
- Clarify public policy positions.
- Collaborate on public policy engagement.
- Communicate to stakeholders regarding public policy engagement.
Actions for the PRI
The PRI will support collaborative policy engagement
The PRI has an important contribution to increase the number and improve the effectiveness of long-term investor engagement with policymakers. The PRI will:
- encourage, educate and facilitate public policy engagement among signatories;
- engage public policymakers on the topic of long-term investment;
- expand regional public policy engagement;
- enhance the PRI clearinghouse platform to facilitate collaborative public policy engagement;
- express the views of investors within the United Nations alongside those of relevant constituent organisations, such as UNEP, UNEP FI, UNGC, UNCTAD, UNFCCC and others.
Actions for policymakers
Policymakers need to involve long-term investors
Policymakers need to create the conditions and incentives for long-term investors to contribute to policy discussions. This is not just a case of engaging with these investors when there is a specific policy issue that directly affects their interests, or when these investors are critical to the implementation of the policy. Such a transactional approach will, inevitably, lead to investors deciding that there is limited value in providing research or information to policymakers, and that there is limited value in playing a supportive role in wider policy debates.
Policymakers seeking to work with long-term investors need to:
- understand the needs and interests of long-term investors and their end beneficiaries, and how these differ from those of other investors, banks and companies;
- encourage investors and other financial sector organisations to clarify their approach to long-term sustainability issues in their policy positions and dialogue;
- facilitate long-term investor input to policy discussions, both through reaching out to investors and through providing opportunities for investors to provide formal and informal feedback;
- develop relationships with the key long-term investment organisations and their trade bodies;
- demonstrate commitment to long-term investor engagement through, for example, ensuring that key individuals and organisations are properly represented on relevant working groups and advisory panels.
“It is crucial for policy makers and investors to work together. This must not be about lobbying. It must be about working together to be sure that our industry serves its clients and can deliver on its purpose of providing the capital which will deliver longterm prosperity.”
David Pitt-Watson, Co-Chair, UNEP Finance Initiative
The case for investor engagement in public policy
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Guidance for investors and policymakers