Responsible Investment Policy Briefing
The PRI’s Responsible Investment Policy Briefing covers global and regulatory developments.
In February’s newsletter:
- FSB: The PRI calls for action following recommendations from the Task Force on Climate-related Financial Disclosures
- Australia and Canada: New policy recommendations
- EU: Shareholder Rights Directive progresses
- UK: Follow London Stock Exchange Group’s lead by issuing ESG guidance – PRI Chair Martin Skancke
- Malaysia: Islamic Finance and SRI on the agenda
- US: Industry-led stewardship principles launched
To provide feedback on our work or suggest new policy areas contact us.
FSB TASKFORCE: THE PRI CALLS FOR ACTION
The PRI strongly welcomes the recommendations of the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD). A strong climate disclosure regime is needed to make sure climate risks can be managed and support financial stability.
We now need a focus on implementation. The PRI recommends further action on scenario analysis disclosures, monitoring, convergence of reporting frameworks and metrics, international accounting standards, listing rules and best practice sharing.
Listen to a podcast with PRI’s Chair, Martin Skankce
Read PRI’s consultation response
AUSTRALIA AND CANADA: NEW POLICY RECOMMENDATIONS
The PRI, in partnership with UNEP FI and The Generation Foundation, has launched two new sets of recommendations to mainstream ESG integration in Canada and Australia.
In Canada, the PRI is calling for Ontario’s pension benefits act to be applied to the other six provinces, ensuring that pension funds are managing ESG risk and providing full transparency to their beneficiaries.
In Australia, our key recommendation is that APRA, the Prudential Regulator, should clarify that investors must consider ESG issues where financially material.
The roadmaps also address issues of regulation, investor education, shareholder engagement and corporate reporting.
EU: SHAREHOLDER RIGHTS DIRECTIVE
European institutional investors and asset owners will need to establish an engagement and voting policy and disclose how it has been implemented on an annual basis under the revised Shareholder Rights Directive. Company Directors will need to give shareholders regular votes on executive pay. The EU will also undertake work to improve and standardise exercise of voting rights. The Directive has reached political agreement pending a full vote by the European Parliament.
Read the PRI’s briefing on the directive
UK: FOLLOW LONDON STOCK EXCHANGE GROUP’S LEAD BY ISSUING ESG GUIDANCE – PRI CHAIR MARTIN SKANCKE
PRI chair Martin Skancke has called on stock exchanges to follow in the path of the London Stock Exchange Group and others, and issue ESG guidance for listed companies. Such guidelines will help fulfill the need for investment-grade ESG data to inform investment decision-making and asset allocation.
MALAYSIA: ISLAMIC FINANCE AND SRI ON THE AGENDA
Securities Commission Malaysia has launched its Islamic Fund and Wealth Management Blueprint, which seeks to establish Malaysia as a hub for Islamic Finance and SRI, as well as align the financial industry with Malaysia’s national agenda on sustainability. The Securities Commission is now investigating how the regulatory framework can support growth in the market.
US: INDUSTRY- LED STEWARDSHIP PRINCIPLES LAUNCHED
The US-based Investor Stewardship Group has launched a Stewardship Framework for Institutional Investors, building on their previously published Corporate Governance framework for US listed companies. Supporters of the code commit to evaluating the corporate governance activities of their investee companies and working together to encourage adoption and implementation.
Read the Stewardship Framework for Institutional Investors