PRI sets out nine priority conditions to address in sustainable financial system work
September 21, 2016
The PRI has released its report Sustainable financial system: nine priority conditions to address.
The report follows the PRI’s consultation with signatories between June and August.
The consultation set out the PRI’s work on a sustainable financial system which will form part of its ten-year Blueprint for Responsible Investment, due for release in March 2017.
In the consultation, 30 underlying conditions that could undermine a sustainable financial system were identified and agreed by signatories. Following the consultation, we have prioritised the nine key obstacles which we will use as a focus for our work:
- Short-term investment objectives
- Attention to beneficiary interests
- Policy maker influence on markets
- Capture of government policy by vested interests
- Influence of brokers, rating agencies, advisors and consultants on investment decisions
- Principal-agent relationships in the investment chain
- Cultures of financialisation and rent-seeking in market actors
- Investment incentives misaligned with sustainable economic development
- Investor processes, practices, capacities and competencies
Our next steps are to prepare a set of recommendations for the sustainable financial system work that the PRI Board will consider as part of the Blueprint for Responsible Investment.