What is ESG ?

31 December 2019

ESG stands for Environmental, Social & Governance and is often a term used to help investors consider an organisations broader impacts on the society, as opposed to just its financial impacts.

 

Leading real estate managers are turning their attention to ESG as the level of discourse and the value of ESG investing has increased in recent years.

 

Many people are however yet to consider whether and how to incorporate ESG across their own portfolios.

 

Our aim is to help you become better informed and thus be able to make better decisions.

 

PRI is the world’s leading proponent of responsible investment. Over 3,000 asset owners, investors or managers (300 of which are in Australia) have signed up with PRI to a set of principles for responsible investment which include;

 

  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.

 

The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices.