Principles for Responsible Investment
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PRI publishes updated US policy briefing
The PRI has published an updated US policy briefing.
The US is the world’s largest capital market, and American investors are increasingly focused on long-term investment approaches that require the inclusion of environmental, social and governance (ESG) factors. The US is also the PRI’s single largest market with more than 345 signatories and $36 trillion in assets under management. In recent years, we have seen US policy makers and regulators seek input on or adopt policies that help promote or support long-term value creation.
The PRI recently published an updated US briefing that discusses recent policy developments – particularly around fiduciary responsibilities, stewardship and financial disclosures – that could, or perhaps already have, impacted ESG integration in the US. The report is not intended to be comprehensive, but is a starting point for discussions with our signatories on the PRI’s policy views and US engagement strategy.
Highlights of the briefing include:
- Support for recent Labor Department (DOL) policies acknowledging that ESG issues can contain financial value and that retirement plan fiduciaries may take ESG factors into account when exercising their right to vote.
- Concern with legislative efforts, such as the Financial CHOICE Act, that could weaken the ability of shareholders to engage with companies and fellow investors on corporate governance and risk management.
- Calls for increased ESG-related disclosures to enable investors to make more informed decisions about long-term value creation that can support a more sustainable financial system.
The PRI strongly encourages all of our signatories to share their views on existing policies and new proposals. For additional information and updates on the PRI’s policy work, signatories can subscribe to our policy newsletter.