MSE signs the UN Principles for Responsible Investment
Monash Sustainability Enterprises (MSE) is pleased to announce that on August 17th 2006 it became a signatory to the United Nations Principles of Responsible Investment (PRI) in its capacity as a Professional Services Provider.
About the PRI
The PRI is an initiative of the United
Nations (UN) Secretary-General implemented by the UN Environment
Program Finance Initiative and UN Global Compact.
The
Principles were developed in response to a growing understanding
that while finance fuels the global economy, investment decision-making
and ownership practices do not, in general, sufficiently reflect
social and environmental considerations. Moreover, there is a growing
view among investment professionals that environmental, social and
corporate governance (ESG) issues can affect the performance of investment
portfolios. Investors fulfilling their fiduciary (or equivalent)
duty therefore need to give appropriate consideration to these issues,
but to date have lacked a framework for doing so. The objective of
the PRI is to provide this framework by providing a set of common
guidelines that individual and institutional investors can use to
assess the risks and opportunities fully.
Developed by leading institutional investors in a process overseen by the UN Environment Program Finance Initiative and the UN Global Compact, the Principles include environmental, social and governance criteria, and provide a framework for achieving better long-term investment returns and more sustainable markets. The Principles are not prescriptive, but instead provide a menu of possible actions for incorporating ESG issues into mainstream investment decision-making and ownership practices. According to the PRI secretariat, applying the Principles should not only lead to better long-term financial returns but also a closer alignment between the objectives of institutional investors and those of society at large.
The PRI currently
has more than 100 signatories across its three membership categories,
representing US$2
trillion in assets held by its 42 Asset Owners and US$3 trillion in funds under management
by its 40 Investment Manager signatories. In signing the Principles,
MSE joins more than 20 Professional Services Providers.
MSE sees its signature to the PRI as providing an ongoing opportunity
to benefit from an international network of information sharing with
other like-minded service providers to improve MSE's services
to its clients. It represents a commitment by MSE to providing services
that support the implementation of the Principles by its clients,
and to assist them in delivering superior risk-adjusted returns consistent
with the principles of fiduciary duty. MSE believes that such an
important initiative deserves wide-ranging support from the international
investment community and is proud to be involved.
About MSE
Monash Sustainability Enterprises (MSE) is a not-for-profit (NFP) research group that operates within Australia's Monash University in Melbourne. MSE provides a range of services to investment managers and asset-owners, including environmental and social ratings of the ASX 300 companies (Australian Stock Exchange), which are used by BT Financial Group in the portfolio construction of three Australian responsible investment funds. MSE is also research provider for BT Financial Group's Governance Advisory Service. MSE also conducts research for both academic and industry purposes on a variety of responsible investment-related topics.
