Mistra adopts UN Principles
Through the research programme Sustainable Investments and through its own asset management, Mistra is working to promote sustainable investing.
FACTS: UNPRI The United Nations Principles for Responsible Investment (UNPRI) is a framework of principles that should lead to responsible investments. Companies and investors can become signatories to the framework and, thereby, commit themselves to follow the guiding principles. The UNPRI was launched in April 2006 at the New York Stock Exchange, in the presence of Kofi Annan, then Secretary General of the UN. Currently, there are signatories from over 20 countries representing assets on the order of 18 trillion USD. For more information see: www.unpri.org
Mistra has recently joined the list of companies and institutional investors that are signatories to the United Nations Principles for Responsible Investment (UNPRI) — a compilation of guiding principles to support responsible investing. By signing on, Mistra has committed to following the principles. Mistra participates in a number of collaborative efforts with institutional investors, including the Enhanced Analytics Initiative (EAI), which aims to influence development so that the majority of institutional investors and asset managers invest sustainably. Encourage analysts
EAI has worked for four years to encourage analysts and stockbrokers to incorporate non-financial information, such as Environmental, Social and Governance factors (ESG factors), in their reports and analyses. The impetus has been purely economic: analyses that contain that type of information are richer and lead to better investment decisions. Mistra´s collaboration with EAI began in 2004, when Mistra provided financing for EAI´s first report. “EAI was important, as one of the first initiatives undertaken with the aim of influencing analysts and stockbrokers to include information related to ESG factors in their analyses," says Eva Thörnelöf, responsible for Mistra´s asset management.
EAI´s members nominated reports from a range of analysts and stockbroker agencies that contained ESG-related information. Based on those nominations, EAI compiled a semi-annual ranking of those companies that were best at reporting non-financial information. Thereafter, the members granted a given percentage of their budgets to the highest-ranking analysis company. “In that way, EAI has actually succeeded in influencing development. The number of reports that include more than economic facts has increased, and the quality of the reports is better," says Thörnelöf.
A global database
EAI is now continuing its work by collaborating with UNPRI. The two organizations will — amongst other things — establish and publish an international database of research results in the field of sustainable investing. As part of this joint initiative, Mistra has become a signatory to the UNPRI. “We have been tied to EAI, and now when they are moving closer to collaborating with UNPRI it is a natural development for us to become a signatory to the principles. We hope to be active in several of its different networks," says Eva Thörnelöf.
UNPRI welcomes Mistra´s decision to sign on to the principles. “Mistra has long been a leading actor in the work to support responsible investing, both as a research-funding organization and in practice, for example by supporting the Enhanced Analytics Initiative," says James Gifford, Executive Director of UNPRI. He continues: “We hope that Mistra will be an asset to us in many ways, within a range of different working groups. In part, Mistra can encourage other foundations to become signatories to the principles. But they can also contribute to the database that is emerging through the collaboration between UNPRI and EAI."
Stimulate interest
Gifford also hopes that Mistra will work to make it easier for foundations and smaller institutional investors to invest sustainably. Mistra and UNPRI will co-organize an international workshop in August 2009 targeting other foundations. “We are happy to participate if this can stimulate interest in and lead to collaboration between the foundations in UNPRI´s network. Mistra is a relatively small institutional investor, but the more institutions that make specific demands the greater impact we will have," says Eva Thörnelöf.
