The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social, and governance (ESG) factors. It supports its international network of investor signatories in incorporating ESG factors into their investment and ownership decisions. The PRI encourages investors to use responsible investment for improved returns and risk management.
The 6 principles of responsible investment
- Principle 1
Incorporate ESG issues into investment analysis & decision-making processes
- Principle 2
Be active owners & incorporate ESG issues into ownership policies & practices
- Principle 3
Seek appropriate disclosure on ESG issues by the entities in which they invest
- Principle 4
Promote acceptance & implementation of the Principles within the investment industry
- Principle 5
Work together to enhance our effectiveness in implementing the Principles
- Principle 6
Report on our activities & progress towards implementing the Principles
Relationship with the United Nations
The United Nations has supported the PRI since its launch in early 2005. The PRI has two UN partners who deliver the PRI’s strategy, including holding a seat each on the PRI Board and providing additional avenues for signatories to learn, collaborate and take action towards responsible investment.
In alignment with the UN PRI, the Institutional Limited Partners Agreement (ILPA) engages, empowers and connects limited partners to maximize their individual, institutional and collective performance. ILPA drives value through its 4 pillars of membership: events, education, industry affairs and standards, research and content. With over 500 institutional investors and a 97% retention rate, ILPA is an extremely influential body.
The main purpose of ILPA is to provide guidance on adopting and enacting best practices within the private equity industry and supply a number of resources, reporting frameworks and templates to help GPs collect and submit relevant financial and ESG data to investors.
In November 2011, it expanded its responsible investment due diligence questionnaire to gather data from private equity firms on their diversity, equity, and inclusion (DEI) metrics. ILPA’s CEO says, “While DEI is a comparatively newer area of focus for LPs, the industry is experiencing a sea change in LPs’ appetite for more nuanced information about team diversity and GP actions to advance DEI.”
How Diversio can support these requirements
In correspondence with the ILPA, private equity firms must collect and report various DEI metrics. DEI reporting requirements are becoming increasingly common. Diversio’s platform can help your company have the information and tools to make meeting these requirements seamless.
Who is Diversio?
By connecting artificial intelligence (AI) technology, sophisticated data analytics, and knowledgeable subject matter experts, Diversio can accurately diagnose opportunity areas, benchmark organizations against peers, and create a robust action plan to meet any DEI goal. Diversio is driving meaningful impact for hundreds of organizations across over 35 countries globally through the unique combination of technology and human expertise.
Diversio – The Diversity Experts™