By Fiona Reynolds (@Fireynolds), CEO, the PRI
The EU taxonomy was launched this quarter, providing investors with tools and clarity around the environmental impact of economic activities in a range of areas including climate, waste, water and pollution. The PRI supports the taxonomy, and our Chief Responsible Investment Officer Nathan Fabian was instrumental in its development in his role as the Rapporteur for the Taxonomy Group of the EU Technical Expert Group on Sustainable Finance.
We produced materials for investors around the taxonomy, including a video with Nathan Fabian, a briefing, and you can register for a presentation from PRI’s policy team here.
G20 in Japan
We hosted an event in Japan a few weeks ahead of the G20 in Osaka which I was very pleased to attend. During my visit and conversations with signatories and other stakeholders, I saw first-hand that ESG engagement from investors is encouraging in the country. More broadly on G20 engagement, the meeting provided an opportunity for the Investor Agenda, of which the PRI is a founding partner, to relaunch its global statement, including a CEO open letter to governments. Of the activities, Reuters reported: “Investors with $34 trillion demand urgent climate change action”.
Ringing the bell for RI in Chile
I was very pleased to meet and talk with signatories during a visit to Chile this quarter, and to ring the bell at the Santiago Stock Exchange in support of responsible investment. The PRI has experienced real growth in Latin America recently, and there’s interest from investors in ESG and climate risk (as Chile will host COP25). For Spanish speakers, read more here.
Inevitable Policy Response
It’s inevitable that the effects of climate change will begin to affect everything from food production to migration and national security. Business is calling for action to create certainty, and it is inconceivable that at some point governments will not be forced to take robust action and we believe that this will happen by mid-2020s. Policy responses are inevitable – it is a matter not of “if” but “when”. The longer the delay, the more abrupt, forceful and disruptive that policy response will be.
Over the next few months, we will release a body of work that we call the Inevitable Policy Response (IPR). It is designed to be a central business planning case for investors, corporates and regulators. To help us shape this body of work, please take this short poll. You can also read more on IPR in my blog here, and in the deck presented at London Climate Action Week here.
CFA & PRI on ESG in Asia Pacific
The latest research with investors by PRI and CFA Institute around ESG integration was launched this past quarter focusing on Asia Pacific. The findings, based on 23 workshops with financial professionals across the region, reveal that limited understanding of ESG integration and issues, lack of comparable and historical data, and cultural issues are the top barriers to ESG integration for equity and fixed income investors in Asia Pacific. The research is part of a series between the PRI and CFA Institute focusing on regions around the world.
PRI Board elections
In the forthcoming PRI Board annual elections, two asset owner positions and one service provider position are up for election. Nominations are open until 21 August (and the election will commence after PRI in Person). For more information click here.
We welcomed 101 new signatories representing US$1.09 trn in AUM to the PRI in the past quarter from all corners of the world, including Psagot Investment House and Sumitomo Life Insurance Company.
We’ll be hosting a range of events and webinars in the quarter ahead including a PRI Forum in New York and a webinar on Responsible Investment in Latin America.
We look forward to seeing many of you at our largest PRI in Person yet in Paris from September 10 – 12. We’ll also host a Sustainable Finance Policy Conference and our Academic Network Conference the day before PRI in Person in Paris. For those new to PRI in Person, you can see a flavour of what to expect from last year’s event in San Francisco here.
Thank you for your ongoing engagement in the past quarter. Across the investment chain around the world, you our signatories represent a very significant voice in responsible investing. Looking forward to the next quarter and to seeing many of you in Paris.
Read our latest Signatory Relations quarterly update