A coalition of 34 institutional investors managing approximately $3.3trn in assets is encouraging 1,900 companies located in 44 countries to consider joining the United Nations Global Compact as part of the "PRI for Rio" collaborative engagement.
Enhancing corporate sustainability was high on the agenda of the 193 Member States that attended the UN's Rio+20 conference in Rio de Janeiro, Brazil in June 2012.
Following that, a group of PRI signatories launched the UN Global Compact to work for increased focus on sustainability among companies globally, calling it "PRI for Rio".
The investors are all signatories to the UN-supported Principles for Responsible Investment (PRI). They are based in Australia, Europe, North and South America and include BNP Paribas Investment Partners, Boston Common Asset Management, Calvert Investments, Highclere International Investors, PGGM, Scottish Widows Investment Partnership, Sparinvest Holdings SE, Threadneedle Investments, Trillium Asset Management and Walden Asset Management.
Globally, investors are increasingly evaluating companies' ability to address environmental, social and governance (ESG) opportunities and challenges. A company's ability to identify and manage such issues has become a significant factor in shaping its financial performance. Participation indicates a company is alert to the business implications of ESG issues.
Around 7,000 corporate signatories in 135 countries have committed to the implementation, disclosure and promotion of the 10 Global Compact principles. Signing up is an important proof of companies' commitment to meet and enact the values the UN Global Compact represents.
Christian Dargnat, global CIO at BNP Paribas Investment Partners said the UN Global Compact is the shared framework on ESG standards for all corporate holdings. "We thus welcome this PRI engagement as a force for expanding these standards across companies."
Bennett Freeman, senior vice president of Sustainability Research and Policy at Calvert Investments, a UNGC participant and PRI signatory, said his firm regularly engages with companies and encourages them to join the Compact to further transparency and disclosure.
Ed Makin, CEO at Highclere International Investors added: "Becoming a member has made us think differently about the way we invest on behalf of our clients, excluding numerous companies from our portfolios that have little regard for environmental, social or governance issues."
Per Noesgaard, group CEO, Sparinvest Holdings SE, said: "Company transparency and disclosure of ESG risks are vital for our ability to assess these in our investment decision-making process. Companies signing up to the UN Global Compact display a commitment to disclosing and addressing ESG risks in their business, which is definitely in our interest as a long-term asset manager."
Pirelli has been an active member of the UN Global Compact since 2004. "By adopting its principles as the foundation for our environmental, social and governance policies and making these the framework within which we develop our business strategy, we have found that we are making a profound, positive impact not only on all our stakeholders, but on our bottom line as well." Marco Tronchetti Provera, chairman and CEO.
The companies invited to join the UN Global Compact were selected on their inclusion in the FTSE All World Index. A sample of the companies are highlighted below.
|Aristocrat Leisure||Japan||Eregli Demir Ve Celik|
|Asciano||Aeon Mall Co ltd||Tupras|
|Australand Property Group||Brother Industries||Turk Telekomunikasyon AS|
|Bank of Queensland Ltd.||Circle K Sunkus||UK|
|Bluescope Steel||Dai-ichi Life Insurance||Ashmore Group|
|Envestra||Dena Co Ltd||Associated British Foods|
|Gunns||H2O Retailing||Daily Mail & General Trust|
|Leighton Holdings||Hamamatsu Photo||Prudential|
|Tabcorp Holdings||IHI||Rentokil Initial|
|Ten Network Holdings||Juroku Bank||Rexam|
|SID Nacional ON||Lawson||Tate & Lyle|
|Telemar Norte Leste SA||Mazda Motor||TUI Travel|
|Ultrapar Participacoes S.A.||Mochida Pharmaceutical||Tullow Oil|
|WEG Ord||Nissan Chemical Industries||Wolseley|
|Companhia de Gas de Sao Paulo Pfd.||Nitto Denko Corp||USA|
|Canada||NS Solutions||Abbott Laboratories|
|Alimentation Couche-Tard||NTT Urban Development||Aetna|
|Canadian Utilities CL A||Ogaki Kyoritsu Bank||Thailand|
|Manulife Financial||Park24||Allstate Corp|
|Penn West Petroleum||Sankyo Co Ltd Gunma||Alpha Natural Resources|
|Research In Motion||Shima Seiki Manufacturing||American Water Works Company|
|Sun Life Financial||Shinsei Bank||Amgen Corp|
|Valeant Pharmaceuticals International||Showa Denko||Anadarko Petroleum|
|China||Showa Shell Sekiyu||Analog Devices|
|BYD||Sony Financial Holdings Inc.||Biogen IDEC|
|Agricultural Bank of China||Sumitomo Metal Mng||Boston Property|
|Beijing North Star||Takara Holdings||Boston Scientific Corp|
|China Agri-Industries Holdings||THK||Church & Dwight|
|China Minsheng Banking||Tokyo Broadcasting System Holdings||City National|
|China Railway Group||Toppan Forms||Cognizant Tech Solutions|
|China Shipping Container Lines||Toyobo Co||Cons Edison Holding|
|China Southern Airlines Company Limited||West Japan Railway||Crown Castle Intl Corp|
|Double Coin Holdings||Korea||Danaher Corp|
|PICC Property & Casualty||Hanwha||Deere & Co|
|Shanghai Friendship||Honam Petrochemical||Dollar Tree|
|Shanghai Wai Gaoqiao Free-Trade Zone Development||KB Financial Group||Dover Corp|
|Tsingtao Brewery||LG Corp||EOG Resources|
|Egypt Kuwait Holding Co||Malaysia||F5 Networks Inc|
|Egyptian Iron & Steel||Parkson Holdings||Foster Wheeler|
|Dassault Systemes||Inmuebles Carso SAB de CV||Home Depot|
|Klepierre||Boskalis Westminster||International Business Machines Corporation (IBM)|
|Germany||New Zealand||Iron Mountain|
|Beiersdorf||Sky City Entertainment Group||J M Smucker|
|Brenntag AG||Peru||JPMorgan Chase & Co|
|Porsche Automobile Holding||Credicorp||Kohl's Corp|
|United Internet||Getin Service Provider SA||Liberty Media|
|Hong Kong||Globe Trade Centre||Liberty Property Trust|
|Bosideng International Holdings||PKO Bank Polski||Loew's|
|China Zhongwang Holdings Ltd||Russia||Macerich|
|Dah Sing||RusHydro (Federal Hydrogenerating Co)||MasterCard|
|Dah Sing Banking Group||TATNEFT||McDermott International|
|Foxconn International Holdings||Singapore||Metlife|
|Hidili Industry International Development||CapitaMalls Asia||MGM Resorts International|
|Hong Kong & China Gas||Guocoland||Motorola Mobility Holdings|
|Hutchinson Harbour Ring||Sia Engr||O Reilly Auto|
|Jardine Matheson||Singapore Post Ltd||Old Republic Intl|
|Jardine Strategic||Wheelock Properties||Omnicom Group|
|Kowloon Dev||Yangzijiang Shipbuilding Holdings||Petsmart|
|Orient Overseas International||South Africa||PG & E Corp.|
|Sands China||Clicks Group Ltd||Pharmasset|
|India||Discovery Holdings||Plum Creek Timber Co|
|Adani Enterprises||Imperial Holdings||PPG Industries|
|Ashok Leyland||MMI Holdings||Procter & Gamble|
|Bajaj Auto Limited||Reunert||Progressive Corp|
|Canara Bank||RMB Holdings||QEP Resources|
|Container Corporation of India||Steinhoff International Holdings||Qualcomm|
|Glenmark Pharmaceuticals||Sweden||Ralph Lauren Corp|
|Grasim Industries||Husqvarna AB-B||Rovi Corporation|
|Jaiprakash Associates Limited||Industrivarden AB-A||Rowan Companies|
|Oriental Bank of Commerce||Modern Times Group||Safeway Inc|
|United Spirits||Aryzta||Sprint Nextel|
|Indonesia||Nobel Biocare Holding||Starwood Hotels & Resorts|
|Bank Central Asia||Richemont A||Toll Brothers|
|Tambang Batubara Bukit Asam||Sonova Holding AG||Ultra Petroleum|
|Israel||Swiss Prime Site||Union Pacific Corp|
|Jerusalem Economy||Synthes||United States Steel Corp|
|Menorah Mivtachim Holdings Ltd||Thailand||Verizon Communications|
|Migdal Insurance & Financial Holdings Ltd.||Siam City Cement||Viacom|
|Finmeccanica||BIM Birlesik Magazalar|
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