For the first time ever, investor initiative PRI is removing five investors for failing to meet minimum sustainable requirements.
Backed by the United Nations, PRI (Principles for Responsible Investment) was launched in 2006 and it boasts over 3,000 signatories managing over $100 trillion in assets.
In 2018, it told members they had two years to meet new requirements before officially delisting four asset managers and one asset owner.
5 Delistings
Of the five firms removed, the largest by assets is BPE, the private banking arm of France’s La Banque Postale ($5 billion).
The remaining include the Netherland’s Stichting Gemeenschappelijk Beleggingsfonds FNV (GFB); U.S.-based Primary Wave IP Investment Management; France-based Delta Alternative Management; and, in the region, Indonesia's Corfina Capital.
The latter four had reported assets of $40 million to $310 million, according to PRI.
«Wakeup Call»
According to PRI CEO Fiona Reynolds, there were unsatisfactory members merely «riding on the brand and riding on what other signatories were doing».
«I think this was a bit of a wake-up call to some people,» Reynolds said in a «Reuters» report.
During the 2018 requirement update, PRI warned 165 members of potential delisting, most of which improved in the last two years. Of those warned, 23 decided to delist while four disputed the evidence of their failure and successfully appealed. There are now plans to further tighten membership requirements with a consultation planned for October 21.
