A group of institutional investors with a collective $30 trillion in assets is collaborating to engage with companies on social issues and human rights, the Principles for Responsible Investment said Thursday.
More than 220 investors signed on to PRI's "Advance" initiative, with 121 pledging to take active roles engaging with 40 companies at the start of a five-year effort, PRI said in a news release issued during its annual conference in Barcelona.
The signatories also agreed to develop their own human rights policy and human rights due diligence process within one year, if they don't have those already.
The pledge from the investors acknowledges the urgency and systemic nature of human rights issues, and the importance of safeguarding human rights "as a societal asset on which investment returns and global prosperity rely," the PRI release said.
"Such prosperity flows through to the portfolios of investors and their beneficiaries through overall market returns ('beta'), and to beneficiaries directly through the improved standards of living achieved through improved respect for human rights," the Advance website said.
The group will first focus on 40 companies in the mining, metals and renewables sectors. PRI will also convene other investors to help find ways to achieve positive outcomes on social issues, and coordinate with existing investor initiatives, including the Investor Alliance for Human Rights.
The idea is to spur more ambitious stewardship on human rights and social issues, PRI CEO David Atkin said in the release. "From tackling global inequalities to preventing damage to the environment which can impact the health of people for generations, we hope Advance will drive positive outcomes for workers, communities, and society at large; supporting investors in fulfilling their own responsibility to respect human rights; and helping the industry manage risks to overall investment returns.," Mr. Atkin said.
