Spanish insurer Mapfre has pledged to align its investment policies with its commitment to responsible social action by joining the global network of signatories to the Principles of Responsible Investment (PRI).
PRI is an initiative in collaboration with the United Nations (UN) Global Compact, which aims to understand the impact of environmental, social and governmental issues on investment and encourages signatories to integrate these issues into their decision-making.
Madrid-based Mapfre, which was the first multinational insurance group to enter Latin America, said the move reflects its long-standing commitment to social and environmental sustainability. The group has been a signatory to the UN Global Compact since 2004, and as an insurance company also adheres to the principles of sustainable insurance developed by the UN.
“As we strengthen and develop our investment and asset management business we aim to align the interests of our investors with the wider objectives of society, without forgetting that those actions are in line with our fiduciary role of always acting in its best interests in the long term,” said Mapfre’s president, Antonio Huertas.
The six-point PRI was developed by investors and backed by the UN. There are over 1,400 signatories operating in more than 50 countries and representing assets worth US$59 trillion.
The group’s asset management business, Mapfre AM, recently launched a fund that invests exclusively in companies with good corporate governance. It adopted the policy after publishing academic research showing that investing in socially responsible companies with good corporate governance is more profitable in the long term.
The six PRI pledges are:
- We will incorporate environmental, social and governance (ESG) issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the PRI within the investment industry.
- We will work together to enhance our effectiveness in implementing the PRI.
- We will each report on our activities and progress towards implementing the PRI.
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