Royal London has signed up to the UN-supported Principles for Responsible Investment (PRI) as part of its commitment to being a responsible investor.

The new commitment to the PRI is part of the mutual provider’s responsible investment commitment as an asset owner to generate good returns while also making a positive contribution to society and the environment

The six principles that Royal London will adopt are: incorporating ESG issues into investment analysis and decision-making processes; acting as active owners and incorporating ESG issues into ownership policies and practices; seeking appropriate disclosure on ESG issues by the entities in which the business invests; promoting acceptance and implementation of the principles within the investment industry; working together to enhance effectiveness in implementing the principles; and reporting on activities and progress towards implementing the principles.

Signing up as an asset owner means Royal London will ensure all asset managers it engages with are committed to integrating ESG factors into investment decisions. Royal London will also expect its asset managers to fulfil stewardship responsibilities by working with the companies they invest in to improve the way they are run by voting shares, meeting with company management, or pushing for higher industry standards.

Royal London Intermediary CEO Isobel Langton said: “Royal London is committed to being a responsible investor. This means being a good steward of our customers’ assets and promoting responsible investment and good governance across all asset classes. Signing the UN Principles of Responsible Investment and reporting against their framework demonstrates our commitment towards a more sustainable global financial system.”

This article originally appeared on our sister title, Insurance Asset Management.

Share Story: