Policy reports

Policy report

Sustainable finance policy roadmap: France

2022-10-05T06:00:00+01:00

The Principles for Responsible Investment (PRI), in partnership with Finance for Tomorrow and the Forum pour l’Investissement Responsable (FIR), has published a roadmap to further promote the development of sustainable finance policy in France.

Policy report

EU Corporate Sustainability Due Diligence (CSDD) Directive

2022-09-29T11:23:00+01:00

This position paper builds on PRI’s consultation response, reaction statement, key takeaways from a joint PRI & WBA roundtable on CSDD with policymakers and signatories held on 13th June 2022, and signatory feedback received over August 2022. The PRI welcomes the Commission’s proposal, but a number of improvements will be ...

Policy report

PRI statement: European Commission proposal for a regulation prohibiting products made with forced labour

2022-09-15T13:42:00+01:00

[Region: EU] On Tuesday 14th September, the European Commission published its proposal for a regulation prohibiting products made with forced labour on the Union market. This is a critical step towards the Commission’s commitment to promote decent work, from February this year.

Policy report

Australia: Integrating sustainability goals across the investment industry

2022-09-12T00:00:00+01:00

Five policy and regulatory reforms could help investors pursue environmental and social goals, and two further measures should also be considered.

Policy report

Investing for a just transition: Proposals for a just transition disclosure framework in China

2022-08-23T08:06:00+01:00

As China moves towards a low-carbon society and increasingly pursues a strategy of high-quality development, there is rich context for a just transition to be applied in China.

Policy report

PRI policy priorities 2022-23

2022-08-11T09:20:00+01:00

Public policy sets the rules of the game that govern the financial system, and affects the sustainability and stability of financial markets, as well as social, environmental, and economic systems. Public policy also critically affects the ability of long-term investors to generate sustainable returns and create value. Therefore, policy engagement ...

Policy report

Review of trends in ESG reporting requirements for investors

2022-08-03T13:07:00+01:00

An overview of environmental, social and governance reporting requirements for investors around the world and the trends driving the disclosures

Policy report

Reconciling energy security with net zero commitments (EU)

2022-07-01T08:38:00+01:00

The war in Ukraine has accentuated the EU’s dependence on fossil fuel imports from Russia and further exacerbated the triple energy policy challenge – energy security, affordability, and addressing climate change – facing governments in Europe and across the globe.

Policy report

Reconciling energy security with net zero commitments (UK)

2022-06-17T15:40:00+01:00

The war in Ukraine, alongside the unexpected, renewed focus on energy security and related debates on maintaining the focus on net zero commitments have prompted an update of the PRI’s UK climate policy roadmap (published in June 2020), which reflects the release of the UK Government’s British Energy Security Strategy ...

Policy report

European Union: Empowering investors to pursue sustainability goals

2022-04-20T08:01:00+01:00

New measures are needed to enable mainstream EU investors to pursue environmental and social goals

Policy report

Investor briefing: EU sustainable finance taxonomy

2022-04-28T07:00:00+01:00

[Region: EU] Regulation (EU) 2020/852 (the EU taxonomy of sustainable economic activities) sets disclosure requirements for certain financial market participants and undertakings. This briefing provides an overview of the EU taxonomy, including a proposed delegated act on gas and nuclear energy.

Policy report

Policy briefing: sustainable infrastructure

2022-04-19T15:10:00+01:00

With these four proposed policy and regulatory recommendations, the PRI hopes to advance the development of infrastructure projects aligned with key global sustainability goals, such as the SDGs and the Paris Agreement.

Policy report

Policy briefing: Japan’s power sector and net zero

2022-03-25T11:34:00+00:00

Japan’s commitment to net-zero by 2050, announced by the former Prime Minister Yoshihide Suga and enshrined in Japanese law, has profound implications for the country’s power sector.

Policy report

PRI statement: European Commission proposal on Corporate Sustainability Due Diligence

2022-03-03T08:25:00+00:00

On Wednesday 23rd February, the European Commission published its proposalfor a Corporate Sustainability Due Diligence Directive (CSDD). This is a transformative step forward to ensure that economic activities tied to the EU single market are conducted in a responsible manner. The PRI responded to the initial public consultation from the ...

Policy report

U.S. Signatory Interview Briefing: Human Capital Management

2022-03-01T16:11:00+00:00

The U.S. Securities and Exchange Commission (SEC) revised its rules in 2020 that required information on “human capital resources” be included in standard financial reporting. This report explains that while these changes are promising, the requirements remain too broad to provide the data needed by investors in their decision-making processes.

Policy report

Scope of the Corporate Sustainability Reporting Directive

2022-02-11T16:13:00+00:00

[Region: EU] This paper builds on PRI’s extensive work on corporate disclosureand our responseto the European Commission’s consultation on the review of the Non-Financial Reporting Directive. The PRI welcomes the extension of the scope of companies reporting under the CSRD to all large companies and all companies listed on regulated ...

Policy report

EU Regulation on sustainability-related disclosures in the financial services sector

2022-02-07T14:30:00+00:00

[Region: EU] This updated briefing unpacks the EU regulation on sustainability-related disclosures in the financial services sector, known as the SFDR, which sets out transparency requirements for investors and financial advisers.

Policy report

PRI statement: EU sustainable taxonomy climate delegated act covering gas and nuclear energy

2022-02-04T09:44:00+00:00

[Region: EU] The European Commission has adopted the EU Sustainable Taxonomy complementary climate delegated act (complementary climate DA). The complementary climate DA, which is now subject to a 4-to-6 month scrutiny period by the European Council and European Parliament, includes technical screening criteria (TSC) covering gas-fired power/cogeneration/district heating and cooling ...

Policy report

Draft Position Paper – TRWG prototype climate and general disclosure requirements

2022-02-02T08:25:00+00:00

[Region: Global] The PRI welcomes the publication of prototypes developed by the Technical Readiness Working Group. To inform further development of the Sustainability Disclosure Standards led by the ISSB, this position paper explains how the current recommendations could be enhanced to better meet the reporting needs of responsible investors.

Policy report

Enhanced Reporting of Proxy Votes by Registered Management Investment Companies

2021-12-14T15:46:00+00:00

[Region: US]  The PRI responded to the SEC’s Proposed Rule, “Enhanced Reporting of Proxy Votes by Registered Management Investment Companies; Reporting of Executive Compensation Votes by Institutional Investment Managers”

Policy report

US Department of Labor: Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights

2021-12-13T14:54:00+00:00

[Region: US]  PRI Response to Department of Labor Proposed Rule Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights

Policy report

EU taxonomy - PRI welcomes adoption of first climate delegated act

2021-12-09T09:15:00+00:00

[Region: EU] The European Council has just approved the EU taxonomy climate Delegated Act (DA), confirming into EU law the adoption of Technical Screening Criteria (TSC) for activities that contribute substantially to climate change mitigation and adaptation objectives.

Policy report

Alternative solutions to include gas-fired power and nuclear energy in the EU sustainable taxonomy

2021-11-19T14:51:00+00:00

[Region: EU] This position paper explains why gas-fired power and nuclear energy are not aligned with the objectives of the EU Sustainable Taxonomy, and presents alternative options for their inclusion in the framework.

Policy report

Policy briefing: The road to COP26 (US)

2021-11-03T16:25:00+00:00

[Region: US] A significant acceleration of action is needed to if we are to meet the Paris Agreement goals. This briefing, which is one of a series of climate policy country briefings, presents the PRI’s recommendations for priority climate-related policies for the US that would help leverage investors’ interests in ...

Policy report

Policy briefing: The road to COP26 (China)

2021-11-01T10:55:00+00:00

[Region: China] A significant acceleration of action is needed to if we are to meet the Paris Agreement goals. This briefing, which is one of a series of climate policy country briefings, presents the PRI’s recommendations for priority climate-related policies for China that would help leverage investors’ interests in supporting ...

Policy report

Private Finance and Green Recovery in the EU – Survey and Roundtable findings

2021-07-29T12:50:00+01:00

[Region: EU] Throughout 2020, the PRI ran a survey and organised a roundtable to explore investors’ perception of the EU Recovery Package. This paper summarises the key findings. It aims to contribute to the successful implementation of the recovery package and suggests ways to maximise the contribution of private finance.

Policy report

Strengthening Stewardship in the EU

2021-06-30T12:48:00+01:00

[Region: EU] The 2018 EU Sustainable Finance Action Plan (SFAP) put Europe on the map as a global leader in sustainable finance. It raised the EU’s ambitions, placing strong emphasis on increasing capital allocations to sustainable companies and activities. However, the crucial lever of stewardship was largely absent from the ...

Policy report

Letter to Congress on the ESG Disclosure Package

2021-06-17T19:39:00+01:00

[Region: US] Letter in Support of H.R. 1187 Corporate Governance and Investor Protection Act

Policy report

Securities and Exchange Commission: Request for Comment on Climate Disclosure

2021-06-11T16:23:00+01:00

[Region: US]  PRI Response to SEC Request for Comment on Climate Change Disclosures

Policy report

Policy briefing: The road to COP26

2021-04-28T12:47:00+01:00

[Region: Global] A significant acceleration of action is needed to if we are to meet the Paris Agreement goals. This PRI briefing provides recommendations for policymakers to support ambitious commitments and take decisive action at COP26 to deliver the needed emissions cuts this decade and a net-zero economy by 2050.

Policy report

Sustainable Finance Policy: the role of G7 and G20

2021-04-06T12:45:00+01:00

[Region: Global] The PRI recommends to host governments of G7 and G20 to commit to policy reforms that align financial regulatory frameworks with sustainability goals, and embed sustainable finance discussions at the core of finance ministers meetings.

Policy report

U.S. Policy Briefing: Considerations for U.S. Regulators to Enhance Investors’ Abilities to Identify, Assess and Take Action on ESG-related Risks and Opportunities​

2021-03-19T12:44:00+00:00

[Region: US] This briefing outlines several broad policy objectives and identifies actions federal financial regulators and lawmakers in the United States can take to revise the U.S. regulatory regime to better promote the integration of environmental, social and governance (ESG) factors into investment practice and decision-making.

Policy report

Delivering net zero emissions in Japan

2021-02-12T12:43:00+00:00

[Region: Japan] This briefing sets out key policy priorities to set Japan on a pathway to achieve a net zero emissions economy; and to do so in a way that is economically, politically and technologically achievable and ultimately beneficial. It is based on research from PRI’s Inevitable Policy Response project.

Policy report

PRI 2021 US Policy Priorities

2021-01-29T12:42:00+00:00

[Region: US] The PRI’s 2021 policy priorities focus on six areas we see as actionable and achievable to support greater adoption of the Principles and advancement of sustainable finance.

Policy report

PRI discussion paper on TCFD forward-looking metrics consultation

2021-01-27T11:44:00+00:00

[Region: Global] This paper looks at the TCFD consultation on forward-looking metrics for financial institutions and makes some recommendations for how the Taskforce may look to develop its guidance.

Policy report

Delivering carbon neutrality in China

2021-01-08T11:05:00+00:00

[Region: China] This briefing sets out key policy priorities to set China on a pathway to deliver carbon neutrality; and to do so in a way that is economically, politically and technologically achievable and ultimately beneficial. It is based on research from PRI’s Inevitable Policy Response project.

Policy report

Sustainable finance policy briefing

2020-10-14T09:55:00+01:00

[Region: Japan] This briefing presents an overview of Japan’s sustainable finance policy framework, as well as recommendations on further policy reforms on a national sustainable finance strategy, stewardship and corporate governance, ESG and climate disclosures, and asset owner regulations.

Policy report

Delivering net zero emissions in the European Union

2020-10-01T09:45:00+01:00

[Region: EU] This briefing sets out key priorities to set the EU on a pathway to deliver a net zero emissions economy by 2050; and to do so in a way that is economically, politically and technologically achievable and ultimately beneficial. It is based on research from PRI’s Inevitable Policy ...

Policy report

ESG disclosure investor survey

2020-09-29T10:05:00+01:00

[Region: China] This briefing presents the results of the investor survey on ESG disclosure in China led in May 2020, as well as the latest analysis on policy and market trends around ESG disclosure

Policy report

Multiannual Financial Framework (MFF) and Next Generation EU

2020-09-16T10:12:00+01:00

[Region: EU] This position paper sets out recommendations for areas that need to be further defined to ensure the European recovery will be in line with the Paris Agreement objectives, ensure the European Green Deal and its objective of making Europe climate-neutral by 2050 are met, can be measured and ...

Policy report

How government and investors can deliver net-zero in the US

2020-08-12T10:18:00+01:00

[Region: US] This report sets out priorities for US federal climate policy which are economically feasible, readily implementable, and necessary. Policy reform can also represent a growth opportunity to enhance US competitiveness and retool large sections of the US economy.

Policy report

PRI Roundtable on the European Green Recovery

2020-06-22T10:24:00+01:00

[Region: EU] On 2 July, the PRI will host a roundtable to discuss Europe’s green recovery, exploring the proposed recovery package and the key opportunities for investors to contribute to a sustainable and equitable recovery. This briefing provides an overview of the context and intended outcome of the roundtable.

Policy report

How government and investors can deliver net zero in the UK

2020-06-09T10:31:00+01:00

[Region: UK] This briefing sets out the key policy priorities to put the UK on a trajectory to meet net zero emissions by 2050, and the role that investors can play. These priorities are consistent with a green recovery from the COVID-19 crisis.

Policy report

Investor priorities for the EU Green Deal

2020-04-30T10:21:00+01:00

The PRI’s report sets out recommendations to ensure that investors can scale up their contribution to the EU Green Deal and sustainability goals more broadly.

Policy report

EU Sustainable Finance: Where next?

2020-01-02T10:57:00+00:00

[Region: EU] This briefing provides an overview on the progress to date on EU Sustainable Finance Policy and presents an outlook of the political implication of the European Green Deal.


2019

Archived policy reports 2019

Region  Date Briefing  PRI briefing 

EU

December 2019

EU Sustainable Finance Taxonomy

The EU taxonomy is a tool to help investors understand whether an economic activity is environmentally sustainable. This briefing explains its purpose and relevance for investors (updated to include political agreement on the regulation).


See full briefing.

China

December 2019

ESG Disclosure in China - Key considerations on policy design

This briefing provides technical guidance as part of the PRI’s work on ESG disclosure in China. It is based on the research and recommendations of the report ESG Data in China: Recommendations on Primary ESG indicators.


Download briefing in English / in Chinese

US

November 2019

US SEC Shareholder Proposal Rule and Proxy Voting Advice

On November 5th 2019, the U.S. Securities and Exchange Commission voted 3-2 to propose rules that would amend: (1) Rule 14a-8 (also known as the shareholder proposals rule); and (2) the regulations governing proxy voting advice.


See full briefing.

Global

September 2019

Taking stock: Sustainable finance policy engagement and policy influence

Over the past five years, there has been a dramatic increase in the attention paid by financial policymakers to sustainability issues. Accompanying, and in some markets, leading this change, institutional investors have actively engaged with these policymakers on sustainability issues. The PRI monitors global sustainable finance policy. This white paper provides an overview of recent developments and presents five key findings.


See full briefing.

EU

August 2019

EU Regulation on sustainability-related disclosures in the financial services sector

This Regulation lays down transparency rules for financial market participants and financial advisers with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts. The briefing explains its implications.


See full briefing.

EU

August 2019

EU Regulation on EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks

This Regulation establishes a voluntary label for EU Climate Transition benchmarks and EU Paris-aligned benchmarks and lays down transparency rules for benchmark administrators with regard to the integration of ESG factors in their methodology. This briefing explains its implications.


See full briefing.

US

June 2019

US SEC New Conduct Rules

The US Securities and Exchange Commission finalized new rules for the conduct for investment professionals. The PRI believes all who provide investment advice owe their clients a fiduciary duty, which includes integration of material ESG factors.


See full briefing 

EU

April 2019

EU Regulation on a Pan-European Personal Pension Product 

The new Pan-European Personal Pension Product (PEPP) regulation sets out requirements for a new category of pension product. The regulation requires PEPP providers to consider risks related to ESG factors, as well as the potential long-term impact of investment decisions on ESG factors.


See full briefing 

Poland

January 2019

Sustainable finance in Poland: The state of play and prospects for progress

This briefing maps the market structures that are hampering or supporting ESG integration in Poland. It will support further discussions about ongoing EU action as well as introduce the topic in a more structured and comprehensive manner to the public and financial sector representatives.


See full briefing

2015 -2018

Archived policy reports 2015 - 2018

Region Date Briefing PRI Briefing
OECD December 2018 OECD| Aligning investors with sustainable finance: a focus on the OECD This briefing makes recommendations to the OECD to align policy work on the financial sector with globally agreed sustainable development objectives, such as the Paris climate agreement.

See full briefing.
Chile November 2018 Ministerio de Hacienda (Treasury Minister)  The PRI encourages the Treasury Minister to introduce ESG requirements in pension regulation, consistent with international regulators.

See full letter (in Spanish).
US  October 2018 Securities and Exchange Commission (SEC) | Policy briefing on shareholder voting process, ESG integration and proxy advice in the US This briefing provides an update for signatories on legislative and regulatory proposals under discussion in the US regarding the shareholder voting process, ESG integration and the role of proxy advisory firms and is intended to support signatories in submitting comment letters to the SEC in advance of the roundtable. The Securities and Exchange Commission (SEC) will host a roundtable discussion on possible regulatory changes to the shareholder voting process on November 15.

See full briefing.
EU October 2018 European Parliament | Investor disclosure and duties The PRI strongly supports this proposal. Financial market reforms to promote a more sustainable European economy are necessary and urgent. We consider reform of investor duties and disclosure critical for the success of the EU’s overall sustainable finance objectives. 

See full position.
EU October 2018 European Council Investor disclosure and duties. The PRI strongly supports the key components of the proposal on investor disclosure and duties. A wide range of analysis – including the EU HLEG report on sustainable finance – recognise the urgent need to strengthen the investment sector’s contribution to sustainability outcomes.

See full position.
EU July 2018 Breifing: The European Commission Action Plan | Assessment of the reform areas for PRI signatories An assessment of the 10 reform areas of the EU action plan for financing sustinable growth. Version 2, published in July 2018, incorporates the European Commission’s regulatory proposals on Action Plan areas 1 (taxonomy), 4 (investment advice), 5 (sustainability benchmarks) and 7 (investor duties).

See full briefing.
US June 2018 Letter FAO: Committee on Financial Services | HR 5756 shareholder proposals resubmission thresholds The PRI has serious concerns that H.R.5756 would significantly weaken the role institutional investors play in the effective corporate governance of US companies. 

See full letter.
US March 2018 Letter FAO: Chicago City Treasurer’s Office | Legislation to amend allow ESG integration into investment policy The Principles for Responsible Investment (PRI) applauds you for putting forth legislation to amend the City Treasurer’s Office’s (CTO) investment policy to allow for the integration of environmental, social and governance (ESG) factors into your investment decision making and ownership practices as well as to become a signatory to the Principles for Responsible Investment.  

See full letter.
US March 2018 Letter FAO: Senate Banking Committee | S 2155 Economic growth, regulatory relief and consumer protection act We have serious concerns that H.R.4015 would significantly weaken the role institutional investors play in the corporate governance of U.S. companies.  

See full letter.
US January 2018 Briefing: US regulation and policy making on responsible investment DOL policies and Financial CHOICE Act This briefing discusses recent policy developments – particularly around fiduciary responsibilities, stewardship and financial disclosures – that could, or perhaps already have, impacted ESG integration in the US. 

See full briefing.

 

US November 2017 Letter FAO: House Committee on Financial Services | HR 4015 - Corporate governance reform and transparency act 2017 The PRI has serious concerns that H.R.4015 would significantly weaken the role institutional
investors play in the corporate governance of U.S. companies.

See full letter.
Canada July 2017 Government of Alberta | Business corporations act The PRI has strong concerns with the current shareholder proposal filing rules in Alberta. We recommend for the Government of Alberta to amend the Regulations under the ABCA to establish a shareholder proposal filing threshold that is substantively the same as that set out in the federal Canada Business Corporations Act and associated Regulations.

See full response.
US April 2017 Letter FAO: House Committee on Financial Services | Rule 14a8 - financial choice act The PRI has strong concerns that multiple aspects of the Financial Choice Act would significantly weaken the role institutional investors play in the corporate governance of US companies, jeopardise long-term value-creation. In particular, we strongly recommend opposing any attempt to modify or limit the Securities and Exchange Commission’s shareholder proposal rule, SEC Rule 14a-8.

See full letter.
EU  February 2017 Breifing: Revised shareholder rights directive | requirements for institutional investors, asset manager, proxy advisors and companies The revised Shareholder Rights Directive (2007/36/EC) recognises that shareholders often exert short-term pressure on investee companies, at the expense of longer term value creation and ESG issues. The Directive seeks to mitigate this by addressing some principal agent problems in the investment chain.

See full briefing.
US November 2016 Breifing: addressing ESG factors under ERISA  The PRI is pleased to present two legal perspectives on integrating ESG issues into investment decision-making under the ERISA guidelines.

See full briefing.
G20 September 2016  Briefing: Greening institutional investment | G20 GFSG input paper This paper takes stock of institutional investor experience with mobilising green capital for green investment and mainstreaming green factors across asset classes. It identifies key drivers for action and barriers preventing progress for input to the G20 Green Finance Study Group (GFSG).

See full briefing.
Hong Kong June 2015 SFC Principles of Responsible Ownership The PRI encourages the Securities and Futures Commission to require institutional investors to report annually on compliance with the Principles of Responsible Ownership.  

See full response.  
Japan January 2015 FSA Corporate Governance Code The PRI supports the objectives of the proposed Corporate Governance Code. The PRI believes that along with active stewardship, this will contribute to higher standards of corporate governance, and ultimately, sustainable long-term growth.   

See full response.
UK April 2015 DWP Proposed changes to the Investment Regulations Trustees should state how they evaluate long-term risks which explicitly include ESG factors. ESG factors are material considerations in all investment decisions.  

See full response.