London Stock Exchange today welcomed the Principles for Responsible Investment and the Sustainable Stock Exchanges
London Stock Exchange today welcomed the Principles for Responsible Investment (PRI) and the Sustainable Stock Exchanges (SSE). Both the PRI and the SSE are working towards ensuring the long-term sustainability of financial markets.
Headquartered in London, the PRI is an international network of investors; asset owners, asset managers and service providers, working together to put six Principles for Responsible Investment into practice. This encompasses supporting signatories to incorporate environmental, social and governance (ESG) considerations into their investment decision making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.
The PRI was founded in April 2006 by former UN Secretary-General Kofi Annan, who invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment. A 20-person Investor Group drawn from institutions in 12 countries was supported by a 70-person group of experts from the investment industry, intergovernmental organisations and civil society. The Principles were launched in April 2006 at the New York Stock Exchange. Mark Makepeace, Chief Executive of FTSE Russell and director of Information Services, London stock Exchange Group, was one of the participants in developing the Principles and FTSE was a founding signatory.
The PRI Initiative has quickly become the leading global network for investors to publicly demonstrate their commitment to responsible investment, to collaborate and learn with their peers about the financial and investment implications of ESG issues, and to incorporate these factors into their investment decision making and ownership practices. The PRI currently has nearly 1400 signatories who collectively represent US$59 trillion in assets under management.
Today in London the PRI in Person 2015 conference starts with more than 1000 participants descending on London. It will be the largest ever ESG investment event, held any where in the world, to date.
The Sustainable Stock Exchanges (SSE) initiative, of which London Stock Exchange Group is a member, is a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators, and companies, can enhance corporate transparency – and ultimately performance – on ESG (environmental, social and corporate governance) issues and encourage sustainable investment. The first meeting of the SSE was opened by UN Secretary-General Ban Ki-Moon in New York City, USA in 2009.
To coincide with the market open today, new guidance was launched by the SSE for stock exchanges to use with issuers to promote best practice voluntary sustainability disclosure. David Harris, ESG Director at FTSE Russell, who chaired the working group developing the guidance commented “Stock exchanges and index providers are aptly placed to connect investors and companies and to facilitate discussion of ESG issues. This guidance will provide a great basis for exchanges to develop their own best practice guidance on voluntary reporting.”
Partner exchanges include Korea Exchange; Hanoi Stock Exchange; Hochiminh Stock Exchange; Bursa Malaysia; Bucharest Stock Exchange; Nairobi Securities Exchange; Santiago Stock Exchange; Jamaica Stock Exchange; Lima Stock Exchange; Deutsche Boerse Group; Stock Exchange of Thailand; Mexican Stock Exchange; Colombian Securities Exchange; London Stock Exchange Group; Warsaw Stock Exchange; Nigerian Stock Exchange; New York Stock Exchange; Bombay Stock Exchange; NASDAQ OMX; Johannesburg Stock Exchange; Egyptian Exchange; BORSA Istanbul; BM&FBOVESPA; and the Rwanda Stock Exchange.