The PRI (Principles for Responsible Investment) is a charter committing international investors to respect “responsible” principles in their investment policy. By establishing, promoting and applying this charter, the signatories intend to contribute to a globally more sustainable financial system.
The PRI was launched in 2006 with the participation of 100 investors. Today, it brings together more than 1,900 signatory investors worldwide, with more than $89,000 billion in assets under management.
PRI operating principle
Concretely, each investor who signs the PRI undertakes to respect the following 6 principles:
- Integrate ESG issues into their investment analysis and decision-making process,
- Be an active investor and integrate ESG principles into their investment monitoring policy,
- Seek appropriate ESG information from the entities in which they invest,
- Promote and accept the implementation of these principles in the investment sector,
- Work together to improve the implementation of these principles,
- And finally, report on their activities and the progress made in implementing the principles.
Each year, the investor must report to the PRI on compliance with their commitments.
To do this, they must answer a questionnaire, which does not, however, give rise to any certification.
And to be able to answer the questionnaire, you must join the PRI.
The amount of the membership depends on the profile (asset owner, investor or service provider) and the size of the member.
For example: For an asset owner, membership can cost from €525 (for less than $90M in assets under management) to €9,600 (above $50B).
The PRI is supported by the Secretary General of the United Nations.
Interest and limits of the PRI for real estate fund players
The PRI has an international reputation among investors, asset owners and portfolio managers. And the “direct – real estate assets” module actually collects information from investors in physical real estate assets – or through unlisted equity securities.
In addition, the evaluation report consists of a comparison between respondents to the same module, therefore between peers.
However, the OID highlights in its 2018 mapping that the “Direct-real estate assets” module, which concerns the tertiary real estate sector, is “poorly adapted to real estate issues”. The benefit of the comparison must therefore be put into perspective.
