PRI shines spotlight on social dimensions of net zero as annual conference kicks off
With PRI in Person in Toronto kicking off in Toronto, The Principles of Responsible Investment (PRI) has launched a new policy research paper to support investors’ engagement with policymakers on social issues related to the transition.
Launched at UN-backed network's annual investor conference, the report reiterated that investors must support the development of “socially conscious transition policies” beyond allocating capital towards sustainable activities.
The paper stated that investors may “better understand” the mutual benefits of supporting sustainable practices, whereas this emphasis is “reportedly lacking” among financial institutions. It also acknowledged that investors have sway over investee companies to implement transition plans, making it important for them to engage with governments to ensure that the transition is “managed effectively”.
It also presented a policy framework to support governments in identifying potential negative impacts of the transition, promoting policies that enable collective gain and securing support for the economic transition.
According to the PRI, the framework considers mainstream policies relevant to the transition and key levers to drive policy reform. It also broadens the scope of stakeholder groups considered, including those who may be affected or have a role to play in the transition.
“Investors play a pivotal role in supporting the transition by engaging with policy makers to develop socially conscious transition policies. This paper proposes a holistic approach to policy making for the economic transition, informed by the real needs and context within which key decision makers operate,” said Margarita Pirovska, director of global policy at PRI.
The paper also reiterates the need for a whole-of-government policy approach to the economic transition.
Maria Nazarova-Doyle, global head of sustainable investment at IFM Investors, added: “A step up in policy levers is urgently required to ensure this enormous societal transformation is smooth and successful.”
