Where have companies committed to the Principles for Responsible Investment?

The Principles for Responsible Investment (PRI) is a set of environmental, social, and governance (ESG) investment principles that were developed to promote sustainable and responsible investment practices. The PRI initiative was launched in April 2006 by a group of institutional investors in collaboration with the United Nations. By the end of 2023, more than 5300 companies in more than 80 countries had signed the PRI. Asset owners in the PRI hold more than $65 trillion in assets.1

Data

PNG

Embed Code

Signatories have a duty to act in the best long-term interests of their beneficiaries, and they understand that ESG issues can affect the performance of investment portfolios. Signatories commit to the following:

Principle 1: They will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: They will be active owners and incorporate ESG issues into their ownership policies and practices.

Principle 3: They will seek appropriate disclosure on ESG issues by the entities in which they invest.

Principle 4: They will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: They will work together to enhance their effectiveness in implementing the Principles.

Principle 6: They will each report on their activities and progress towards implementing the Principles.

Data

GIF

Embed Code

The PRI offers three different types of signatory: asset owners (organizations that represent end-asset owners who hold long-term retirement savings, insurance, and other assets), investment managers (companies that serve an institutional and/or retail market and manage assets as a third-party provider); and service provider (organizations that offer products or services to asset owners and/or investment managers).2

Data

PNG

Embed Code

The PRI is lauded for its fundamental role in improving investment decisions for the clients and ultimate beneficiaries of asset owners and asset managers.3 However, the PRI is criticized for its voluntary basis that lacks strong enforcement mechanisms which can lead to “greenwashing”. In 2022, the U.S. Securities and Exchange Commission fined Goldman Sachs Asset Management, a PRI signatory, for failing to follow its policies and procedures involving ESG investments.4

Critics question the PRI’s emphasis on disclosure and reporting of ESG practices rather than measuring the actual impact of investments on sustainability and responsible business practices. The latter issue is important: do asset manager signatories follow through by changing their portfolio holdings to incorporate ESG? There is evidence that becoming a signatory to the PRI does not lead to an increase in a fund’s ESG score.5

1 Principles for Responsible Investment, “2022-2023 Annual Report,” Link

2 OECD, “The UN Principles for Responsible Investment and the OECD Guidelines for Multinational Enterprises: Complementarities and Distinctive Contributions,” 2007, https://www.oecd.org/investment/mne/38783873.pdf

3 Eccles, Robert G., “Do Signatories to The Principles for Responsible Investment Practice What They Preach?” Forbes, Aug 4, 2020, Link

4 U.S. Securities and Exchange Commission, “SEC Charges Goldman Sachs Asset Management for Failing to Follow its Policies and Procedures Involving ESG Investments,” Nov. 22, 2022, Link

5 Mozaffar Khan, George Serafeim, Aaron Yoon; Corporate Sustainability: First Evidence on Materiality. The Accounting Review 1 November 2016; 91 (6): 1697–1724. https://doi.org/10.2308/accr-51383

Recent Data Stories

What is the ‘diesel discount’ and does it matter?

Road transport relies heavily on gasoline and diesel, influenced by government policies that often favor diesel for its efficiency. However, diesel produces more pollution, and the tax revenues it generates complicate change. The debate now centers on speeding up the transition to electric transportation to combat greenhouse gas emissions while balancing historical preferences with environmental concerns.

How does public finance support energy?

The global energy system encompasses diverse infrastructure requiring extensive investment, with USD 2.8 trillion spent in 2023. Public finance significantly supports energy projects, where fossil fuels received 56% of funding from 2013 to 2022. Clean energy finance increased until 2021, highlighting varying regional priorities and the dominance of large projects in funding distribution.

Where are people most exposed to particulate matter?

Airborne particulate matter (PM2.5) comprises tiny particles that pose significant health risks, including heart disease and lung cancer. Major sources include natural events and human activities, with notable geographic variations. Reductions in PM2.5 levels have been observed in affluent regions, but exposure remains high in countries like China and India, impacting public health.

What renewable fuels have the largest climate benefit?

Approximately 91% of transportation energy globally comes from petroleum fuels, creating 29% of US and 20% of global greenhouse gas emissions. Biofuels offer potential emission reductions but raise land use concerns. Ethanol's carbon emissions have decreased, and ongoing research aims to further reduce them. Government support and investments are driving biofuel expansion.

What is nuclear power uprating and why is it important?

Nuclear power in the US has steadily contributed 19% of electricity since 1990, mainly through uprates. These uprates, approved by the NRC, have boosted capacity by 24,080 MWt or 8030 MWe, equivalent to over 7 new plant units. Most uprates range from 0-5%.

Global nuclear power capacity additions

Nuclear power plants have a nameplate capacity of about 390 gigawatts and supply 10% of the world’s electricity. The United States, Russia, France, Japan, South Korea, and China account for 71% of global capacity. Capacity additions have declined due to accidents, rising costs, public opposition, and the increasing attractiveness of renewable power generation.

Our mission

Visualizing Energy communicates facts on the link between sustainable energy and human well-being to decision-makers, media, companies, advocates, educators, and the public.

Who we are

Visualizing Energy is an independent and neutral university-based research and communication organization.

What we do

We knit data analysis, visualizations, and the written word into stories that reveal how our energy system can be transformed to reduce inequity, steer humanity from climate disaster, improve health and other social outcomes, and lead to healthier natural systems. We address the energy system itself (sources, conversion, end use), economics (prices, investment, market failures), social outcomes (well-being, energy poverty, and climate justice), and environmental change (climate, pollution, and land and water use).

How are we different

The internet is awash in information about energy, climate change, and health impacts of pollution. But society is deficient in a shared understanding of how our energy system must change. One reason for that is that information is siloed by technology, policy, and disciplines. We use the unique role of energy in human affairs and natural systems as the unifying principle behind compelling, data-driven stories that point to solutions that are feasible, affordable, and equitable. We are interdisciplinary and collaborative, working with diverse teams and perspectives that span the broad energy landscape.

Open access

Visualizing Energy aims to accelerate a sustainable energy transition by deploying a more equitable system of knowledge. To that end, all the data, visualizations, and original text are freely available to all users. We license all our content under the Creative Commons BY license. Users have permission to use, distribute, and reproduce the data, visualizations, and articles provided the source and authors are credited.

Transparency

We heavily rely on data that someone else produced. All the data in Visualizing Energy is attributed to its original source so that the user can independently judge its accuracy and reliability. We describe all major modifications that we make to data.

Subscribe to Visualizing Energy

* indicates required
Subscription

Discover more from Visualizing Energy

Subscribe now to keep reading and get access to the full archive.

Continue reading