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:

  1. Short-term investment objectives
  2. Attention to beneficiary interests
  3. Policy maker influence on markets
  4. Capture of government policy by vested interests
  5. Influence of brokers, rating agencies, advisors and consultants on investment decisions
  6. Principal-agent relationships in the investment chain
  7. Cultures of financialisation and rent-seeking in market actors
  8. Investment incentives misaligned with sustainable economic development
  9. 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.

To provide feedback on the report or for further information on the PRI’s sustainable financial system work, contact or Morgan Slebos.