Indonesian and South East Asian investors met in January todiscuss the UN-backed Principles for Responsible Investment (PRI), and howthese Principles can assist them in managing emerging environmental, social andcorporate governance (ESG) issues. The discussion also dealt with the relevanceof responsible investment in the current financial climate.

The workshop, co-hosted by Indonesia Stock Exchange (IDX),Yayasan Keanekaragaman Hayati Indonesia (KEHATI) and the PRI Initiative, washeld at the Indonesia Stock Exchange. Keynote speakers included State Ministryof Environment Minister, HE Ir Rahmat Witoelar, and Advisory Council Member tothe President of Republic of Indonesia, HE Prof. Emil Salim. 

PRI Initiative Executive Director, James Gifford, stated,

"We are often asked whether responsible investment is relevant in times of crisis such as these. Our response is a clear yes. The current crisis throws a spotlight on systemic failures within capital markets and the urgent need for more sustainable capital markets. By practicing responsible investment, investors can be a major part of creating that solution. Responsible investment involves enhanced analysis of a broad range of extra-financial risks, a more proactive approach to corporate governance, the monitoring of agents and increased transparency and accountability, both in investors' own operations and those of the companies they invest in. Indeed, one of the causes of the global financial crisis was poor governance and risk management within some of the world's largest financial institutions."

The workshop introduced the various work streams within the PRI Initiative, including the PRI Clearinghouse, which is the first global collaborative forum for institutional investors to address collective action problems on a global basis.

The Principles for Responsible Investment, convened by UNEP FI and the UN Global Compact, were launched in 2006 by UN Secretary-General Kofi Annan as a framework to help investors achieve better long-term investment returns and sustainable markets through better analysis of environmental, social and governance issues in investment process and the exercise of responsible ownership practices.

The Principles are aspirational guidelines which assist investors in integrating ESG issues into mainstream investment practices. They were developed by, and for, institutional asset owners such as large pension funds and fund managers. They encourage an ‘active ownership' approach, involving constructive dialogue with companies to promote good practice in the management of environmental, social and corporate governance issues over the long term. They also involve commitments to the analysis of a broader range of extra-financial issues, as well as enhanced transparency.

For more information, go to www.unpri.org