Policy reports

Policy briefing: Unlocking the Potential of Shareholder Voting in China

2023-05-04T15:19:00+01:00

This briefing focuses on shareholder voting in China. It makes policy recommendations to help mobilise institutional investors to exercise their voting rights more effectively and responsibly for the purpose of securing and enhancing overall long-term value for clients or beneficiaries.

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

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.

Policy reports

2019

2015 -2018