The central question that motivates this paper is: do signatories of the UN PRI receive an above-average ESG-Performance as non-signatories? If this question is confirmed, we will go into detail and analyse, whether the signature leads to a higher ESG-Performance after signing. In order to answer these questions we will use the database of Thomson Reuters ASSET4 to measure the ESG-Performance of the companies.
ESG-Investing, Green Investing, Impact Investing, Responsible Investing, Socially Responsible Investing, Sustainable Investing (Zagst et al. 2011: 21), just to name a few examples, all these catchwords have one thing in common: they want to establish and promote sustainability in the field of investment.
Zagst (2011: 21) criticized that there is no uniform definition for Responsible Investing, instead the above catchwords are more or less a substitute for it.
Against this background, it was important that an institution is established, which creates order and clarity. However, no obligation to join the institution, but to create incentives to join voluntarily. This gap could close an institution: UN PRI.
The United Nations-supported Principles for Responsible Investment (UN PRI or PRI) is an investor initiative in partnership with UNEP Finance Initiative and the UN Global Compact (PRI n. d. a: 1). Following an invitation of the UN Secretary-General Kofi Annan at that time, a twenty-member group of the world’s largest institutional investors and a seventy-member expert group have jointly begun to develop the Principles for Responsible Investment in early 2005 (PRI n. d. e). During the formulation of these principles by these selected groups, care was taken to ensure that they are “[…] compatible with the investment styles of large, diversified, institutional investors that operate within a traditional fiduciary framework” (PRI n.d.a: 4).
In April 2006 the PRI were officially introduced at the New York Stock Exchange (PRI n. d. e).
Within nine years the number of signatories of the PRI has grown from 100 in April 2006 to 1,380 in April 2015. Assets under management recorded a strong average growth of 29 % from 6,5 trillion US-Dollar in April 2006 to 59 trillion US-Dollar nine years later. This amount represents more than half of worldwide institutional assets. (PRI n. d. f: under the title “Growth of the PRI Initiative” and PRI n. d. g)
This strong and rapid growth illustrates the relevance and right to exist of this initiative.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Introducing the UN PRI Initiative
- About the UN PRI
- Signatories and their commitments
- The six Principles for Responsible Investment
- Data and methods
- Data
- Methods
- Results and discussion
- Inductive statistics
- Descriptive statistics
- Discussion
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper investigates whether signatories of the UN Principles for Responsible Investment (PRI) achieve a higher ESG performance compared to non-signatories. It aims to determine if signing the PRI leads to improved ESG performance and to analyze the relationship between PRI signatory status and ESG ratings using the Thomson Reuters ASSET4 database.
- The relationship between UN PRI signatory status and ESG performance.
- Analysis of ESG performance changes in companies after becoming PRI signatories.
- The role of the UN PRI in promoting sustainability in investment.
- Evaluation of the effectiveness of the UN PRI initiative.
- Application of Thomson Reuters ASSET4 data in ESG performance analysis.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the concept of responsible investing and its various terms, highlighting the lack of a uniform definition. It emphasizes the need for an institution to bring order and clarity to the field, leading to the introduction of the UN PRI as a voluntary initiative encouraging responsible investment practices. The chapter establishes the central research question: Do UN PRI signatories achieve above-average ESG performance compared to non-signatories? It also outlines the paper's structure and the use of the Thomson Reuters ASSET4 database for analysis.
Introducing the UN PRI Initiative: This chapter provides a detailed description of the UN PRI initiative, including its establishment, its partnership with UNEP Finance Initiative and UN Global Compact, and the development of its six principles. It explains the initiative's growth in terms of signatories and assets under management, highlighting the significance and impact of this voluntary commitment to responsible investment. The six principles themselves are discussed in detail, providing context for the following analysis of ESG performance.
Data and methods: This chapter describes the data and methodologies employed in the research. It details the use of the Thomson Reuters ASSET4 database, a significant source of ESG data, for measuring company performance. The chapter explains the data selection process and the statistical methods used to analyze the collected data. This section is crucial for understanding the reliability and validity of the research findings presented in the subsequent chapter.
Schlüsselwörter (Keywords)
ESG performance, UN Principles for Responsible Investment (PRI), Sustainable Investing, Responsible Investing, Thomson Reuters ASSET4, Empirical analysis, Institutional investors, Corporate governance, Environmental, Social, and Governance (ESG) factors.
Frequently Asked Questions: Analysis of UN PRI Signatories and ESG Performance
What is the main research question addressed in this paper?
The central research question is: Do UN PRI signatories achieve above-average ESG performance compared to non-signatories?
What is the UN PRI Initiative, and why is it important?
The UN Principles for Responsible Investment (PRI) is a voluntary initiative encouraging responsible investment practices. It's a partnership between the UNEP Finance Initiative and the UN Global Compact, aiming to bring order and clarity to the field of responsible investing. Its importance lies in its influence on how institutional investors approach ESG factors in their investment decisions.
What are the six Principles for Responsible Investment?
The provided text doesn't explicitly list the six principles, but it mentions that they are discussed in detail within the "Introducing the UN PRI Initiative" chapter. The analysis focuses on whether adherence to these principles correlates with improved ESG performance.
What data and methods were used in this research?
The research utilizes the Thomson Reuters ASSET4 database as its primary source of ESG data. The text indicates that both inductive and descriptive statistics were employed in the analysis. The specific data selection process and statistical methods are detailed in the "Data and methods" chapter.
What are the key themes explored in this paper?
Key themes include the relationship between UN PRI signatory status and ESG performance, the analysis of ESG performance changes after becoming a signatory, the role of the UN PRI in promoting sustainability, and the effectiveness of the UN PRI initiative itself. The application of Thomson Reuters ASSET4 data in ESG performance analysis is also a central theme.
What are the chapter summaries?
The introduction sets the stage by defining responsible investing and introducing the research question. The chapter on the UN PRI initiative provides a detailed overview of the organization and its principles. The data and methods chapter explains the methodology used for data collection and analysis. The results and discussion (not fully summarized in the preview) would present the findings based on the analysis. The conclusion synthesizes the overall findings.
What are the key words associated with this research?
Key words include ESG performance, UN Principles for Responsible Investment (PRI), Sustainable Investing, Responsible Investing, Thomson Reuters ASSET4, Empirical analysis, Institutional investors, Corporate governance, and Environmental, Social, and Governance (ESG) factors.
What is the overall structure of the paper?
The paper follows a standard academic structure: Introduction, a detailed examination of the UN PRI initiative, a description of data and methods, presentation of results and discussion, and a conclusion. This preview provides a comprehensive table of contents and chapter summaries.
Where can I find more information about this research?
The full text of the research paper would contain the detailed information not included in this preview.
- Quote paper
- Stefan Rittmeier (Author), Vladimir Polschin (Author), 2015, Do UN PRI signatories receive an above-average ESG-Performance?, Munich, GRIN Verlag, https://www.grin.com/document/316162
