Respecting the UN PRI
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 and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.
The PRI is truly independent. It encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. Read the ESG Statement of our CEO about responsible investment at Value Square.
Value Square and the UN PRI
We are delighted to share our Assessment Report from UNPRI for 2020 where we have scored A+ for all modules. For engagement for instance, Value Square was assessed in A+ band for individual and collaborative engagement, implying we were in top 20% of all investment managers and in top 5% of peers of our size! This corroborates our efforts towards ESG incorporation and Active ownership. We will continue to enhance our ESG efforts in coming years.
The Assessment report is designed to provide feedback to signatories to support ongoing learning and development.
Why are signatories assessed?
The assessment aims to fulfil three main objectives:
- Facilitate learning and development, outlining how signatories’ implementation of responsible investment compares year-on-year, across asset classes, and with peers at the local and global level.
- Identify how signatories can improve their RI practices, and
- Allow asset owners to focus their discussions with investment managers on responsible investment activities and capabilities.
Assessment provides signatories with a confidential report that can be used for internal learning and development as it provides:
- Accurate and reflective reporting, and
- Year-on-year progress and broad scoring bands, which allow signatories to re-evaluate their RI priorities.
Assessment began as the result of a consultation in 2013 with signatories and the Reporting & Assessment Advisory Committee (RAAC).
What are the six Principles for Responsible Investment?
The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.
The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. They have attracted a global signatory base representing a majority of the world’s professionally managed investments.
- Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
- Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
- Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
- Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
- Principle 6: We will each report on our activities and progress towards implementing the Principles.
What is the PRI’s mission?
“We believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole.
The PRI will work to achieve this sustainable global financial system by encouraging adoption of the Principles and collaboration on their implementation; by fostering good governance, integrity and accountability; and by addressing obstacles to a sustainable financial system that lie within market practices, structures and regulation.”
In-house funds based on the principles of Value Investing