The responsible investment discipline in listed equity has been rising up the agendas of investors, regulators and society in recent years. Despite this, there are a number of challenges that investors face in integrating ESG into investment decisions and in accessing material information from listed companies.
About the work stream
Support for implementing responsible investment within listed equities has been part of the PRI since its inception. Assistance has taken many forms over the years, including webinars, PRI in Practice articles, case studies, research reports, guidance documents and events. Signatories have the opportunity to participate in working group projects and contribute to the development of resources for listed equity investors.
The PRI convened a working group in September 2011 to explore the integration of ESG issues in listed equity. In response to demand from signatories for more transparency and guidance, the working group became focused on the details of how to integrate ESG information into the fundamental equity value of companies. A report filled with industry-leading case studies (see below) was published in February 2013, accompanied by guidance for asset owners on integrating ESG into manager selection agreements and monitoring.
Following the success of this publication and rising demand from the investor community, the working group recently made a call for new examples of integrated equity research. A selection of case studies will be published as a six-month update to the review and will also be considered for presentation at PRI in Person in Cape Town this October. Please click here for more information and application requirements.
Resources listed may require PRI signatory extranet access.
- The PRI Clearinghouse is a key resource for investors in listed equity. Investors can use its global collaborative platform to share information on engagement activities with listed companies and to collaborate with other signatories.
- Integrated Analysis: How investors are addressing environmental, social and governance factors in fundamental equity valuation (February 2013)
- Aligning Expectations: Guidance for asset owners on incorporating ESG factors into manager selection, appointment and monitoring (February 2013)
- PRI and UNEP FI joint publication Universal ownership: Why environmental externalities matter to institutional investors (April 2011)
- Responsible investment in passive management strategies (February 2011)
- BNP Paribas Investment: Using ESG research to create value
- SAM: How to integrate sustainability factors into financial valuations
- Threadneedle Asset Management: An organically grown integration process
- FRR: Incorporating ESG when selecting both passive and active mainstream equity managers
- ESG Investor Briefing | Norsk Hydro
- ESG Investor Briefing | Eni
- ESG Investor Briefing | Pirelli
- ESG Investor Briefing | Enel
- ESG Investor Briefing | SAP
- Credit quality and climate change policy in the US
- Engagement as a mechanism to change investee ESG practices
- Arms Trade Treaty: Establishing common international standards for arms trading
- Law and policy on responsible investment
- Social factors: What to look for and how to quantify them