October Policy Newsletter

Responsible Investment Policy BriefingOctober 2018

 

The PRI’s Responsible Investment Policy Briefing covers global and regulatory developments.

 

In October’s edition:

 

  • US updates including ERISA report launch and proxy process roundtable
  • regulatory steps in the European Commission’s proposal to further codify investor duties
  • EIOPA survey on the integration of sustainability risks and sustainability factors
  • response to the review of the Australian prudential framework for RSE licensees
  • PRI response to AMAC draft Green Investment Guidelines

 

To provide feedback on our work or suggest new policy areas of focus, please contact us.

Corporate Governance and Transparency Act 

The Securities and Exchange Commission will host a roundtable on the proxy process on 15 November. Ahead of the roundtable, the SEC withdrew letters submitted by staff to proxy advisory firms in 2004. The PRI strongly supports shareholder engagement and active ownership. We encourage signatories to submit comments. Later in October, the PRI will be preparing a briefing on the Act for signatories.

 

Climate Risk Disclosure Act

The PRI welcomes Senator Elizabeth Warren’s bill which directs the SEC to issue rules requiring companies to disclose information about their exposure to risks caused by climate change. The proposed legislation, the Climate Risk Disclosure Act, would enable global investors to better assess and manage climate-related risks and opportunities in their portfolios. See the PRI’s statement here.

 

PRI launches report on ERISA plans and ESG incorporation The PRI recently published Untangling stakeholders for broader impact: ERISA plans and ESG incorporation. The report explores the US private sector retirement market that is regulated through the Employee Retirement Income Security Act of 1974 (ERISA) and the policy, governance and specific stakeholder factors that could drive the growth of ESG assets. Contact Colleen Orr for more information.European Commission proposal on investor duties gains ground

The European Commission’s proposal to further codify investor duties has passed another regulatory step. A draft report setting out some of the Parliament’s likely demands in future negotiations has been released, seeking to expand the original proposal by strengthening the definition of sustainable finance and introducing mandatory due diligence for investors. MEPs have a deadline of 5 November to agree their final position before negotiating with the European Council.

 

Contact Alyssa Heath for more information.

EIOPA survey on integration of sustainability risks and factors The European Insurance and Occupational Pensions Authority (EIOPA) is looking for responses to its survey on the integration of sustainability risks and factors in the delegated acts under the Insurance Distribution Directive and the Solvency II Directive. Deadline is 2 October.

 

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