Executive pay, climate change and labor standards in supply chains are the main issues to address in the coming year in portfolios of institutional investors, according to a survey by the United Nations-backed Principles for Responsible Investment Initiative (PRI).
Institutional investors collectively managing more than $2 tn in investments say in the survey that those three issues constitute the top priorities for ‘future collaborative engagement to be coordinated by the PRI secretariat over the next three years’.
‘The PRI clearinghouse [a forum where signatories can discuss collaboration] supports some of the world’s leading asset owners and investment managers to be active owners of the assets in their portfolios, and they have signaled several areas they believe require greater attention by companies over the coming year,’ says James Gifford, executive director of the PRI, in a statement.
‘It is clear a company’s management of ESG issues plays a role in its ability to deliver sustainable returns to its investors, and users of the clearinghouse recognize that exercising the rights associated with ownership of the assets in their portfolio is a fundamental part of managing, protecting and enhancing the value of those assets for their clients and beneficiaries.’
The three top issues also share the highest profile among the general public in recent years.
Executive pay has increasingly caught the public eye, severe weather has highlighted climate change this year and high-profile accusations of low labor standards in supply chains, such as those of Apple, have brought that issue greater public attention.
The issues that rank second are water, human rights and corruption, according to the survey.
In third place comes issues surrounding unconventional fuels such as the Alberta oil sands and fracking techniques, the plight of indigenous populations, and issues related to corporate boards, particularly gender diversity.
Top five issues selected by PRI Clearinghouse users:
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