In late 2018, Fiona Reynolds, CEO of the PRI (Principles for Responsible Investment), delivered a speech at the G20 meeting in which she encouraged global policy makers and regulators to clarify the need for all long-term investors to incorporate ESG factors in their investment processes. In other words, she proposed that ESG factors formally be included as part of investors’ duties and fiduciary responsibilities.
So what is the PRI and how is it having an effect on global ESG policy?
The PRI is an independent organization working to define and encourage responsible investing around the world, with the mission to put sustainability at the heart of the capital markets. The principles themselves revolve around the practice of incorporating environmental, social and governance (ESG) factors in investment decisions and active ownership.
Image source: https://www.unpri.org/
By way of background, “the PRI were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. In early 2005, the then United Nations Secretary-General Kofi Annan invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment. Initially, a 20-person investor group from institutions across 12 countries was drawn by a 70-person group of experts from the investment industry, intergovernmental organizations and civil society.”1
Today, the PRI works with its international network of asset managers and asset owners that have volunteered as signatories to put the six Principles for Responsible Investment into practice. There are currently more than 2,000 signatories from over 60 countries, representing over $80 trillion of assets. In implementing these principles, signatories contribute to developing a more sustainable global financial system.2 Dana Investment Advisors is proud to be one such signatory.
The Six Principles:
Image source: https://www.unpri.org/download?ac=5739
Each year, Dana completes a comprehensive PRI annual report on our firm and investment strategies. This review is very comprehensive and dives into our firm’s culture and practices, our investment approach, advocacy efforts and outreach to local communities, regulatory boards, educational forums and more. Dana is compared against all other signatories (over 2,000 firms), all of which are required to go through the scoring process. Six standardized performance Bands (A+, A, B, C D and E) are used to communicate signatories’ performance at the module level. We are proud of our results, below, from the 2018 assessment. Together with our clients and many other like-minded entities, we are making meaningful progress toward a more sustainable economy. You can read more about the scoring methodology here.
1,2https://www.unpri.org/download?ac=5739
The universe of acceptable investments for the Dana Epiphany ESG Equity Fund may be limited as compared to other funds due to the Fund's ESG investment screening. Because the Fund does not invest in companies that do not meet its ESG criteria, and the Fund may sell portfolio companies that subsequently violate its screens, the Fund may be riskier than other mutual funds that invest in a broader array of securities. There is no affiliation between Unified Financial Securities, LLC and the PRI.