1. United Nations Principles for Responsible Investment (UNPRI) Initiative
What is responsible investment?
Explicit acknowledgement of the relevance of environmental, social and governance factors in investment decisions
How is it different from conventional investing?
Creation of sustainable, long-term investment returns not just short-term returns
Investors must realize that well-functioning social, environmental and economic systems are critical to long- term investment returns

2. Six Principles of the UNPRI
Incorporate ESG issues into investment analysis and decision making processes
Be an active owner and incorporate ESG into ownership policies and practices
Seek appropriate disclosure on ESG issues by the entities in which one is invested
Promote acceptance and implementation of the Principles within the industry
Work together to enhance effectiveness in implementing the Principles
Report on activities and progress toward implementing the Principles

3. Why become a signatory?
Publicly demonstrate SU’s commitment to responsible investment
Provides a framework for integrating ESG issues into investment decision-making and ownership practices

4. Signatory categories
Asset owner – Pension funds, foundations and endowments are in the asset owner category
Recognition of ESG issues as a method of reducing risk and generating sustainable financial returns

5. Mandatory requirements
After a one year grace period, signatories must:
Complete the PRI reporting framework
Pay the annual fee
AUM under $1bn - £800

6. Recommendation to the board
SHORT TERM:
Embed the principles in your investment policy statement
Request more reporting on proxy/engagement by managers
LONG TERM:
Create a committee to research the implications (benefits/drawbacks) of becoming a UNPRI signatory
Provide a recommendation within 18 months

7. What is involved in completing the framework?
The framework consists of 12 modules
It is only mandatory to complete a module if more than 10% of your AUM is in that asset class
Each module contains mandatory and voluntary report indicators
Mandatory to report, mandatory to disclose; these are made public
Voluntary to report, voluntary to disclose; signatory can decide to make responses public
Mandatory to report, voluntary to disclose

8. Reporting outputs Responsible investment transparency report
The mandatory indicators and voluntary indicators that the signatory has agreed to make public
Assessment report
Confidential report demonstrating how the signatory has progressed in its implementation of the Principles and relative to peers
PRI report on progress
Showcases the progress and activities of the signatory base as a whole

9. Assessment report Designed to provide feedback to signatories
Is still in a ‘pilot’ stage; subject to change
Summary scorecard provides an overview of the aggregate score for each module and the median score
Ranges from A+ to E
The A+ band was created for signatories scoring above 95% in a module
The E band is for those who do not implement responsible investment activities for an asset class
Those who demonstrate active participation, but are in the early stages of developing processes are in a different band

10. Assessment report, cont.
The indicator scorecard summarizes scores for each core and additional assessed indicator within each module
Ranges from (no stars) to (three stars)
Each signatory’s module score will fall in four broad ranges to be assigned based on their score in a specific module
>95% = Band A+
76% - 94% = Band A
51% - 75% = Band B
26% - 50% = Band C
1% - 25% = Band D
0% = Band E

11. Assessment report, cont.
The maximum score (100%) for each module will be based on the ‘core’ indicators and on the highest scoring ‘additional’ indicators.
For example: 12 indicators; seven core, five additional – score is based on the core [7X3 stars = 70%] and the three highest additional indicators [3X3 stars = 30%]