Invalda INVL, one of the Baltic region’s leading asset management groups, together with its INVL Asset Management companies in Lithuania and Latvia, has joined the UN-supported Principles for Responsible Investment (PRI).
The PRI, founded in 2006, is a global network of over 1700 investors representing US$73.5 trillion in assets under management, aims to assess the investment implications of environmental, social and governance (ESG) factors. An economically efficient, sustainable global financial system is considered a necessity for long-term value creation. Investors who support the PRI voluntarily work to apply the principles in their investment activities.
“Investing and its long-term success go hand in hand with responsibility. We endeavour to use the world’s most advanced approaches in our work, that’s why we’ve signed on to this global initiative,” said Darius Šulnis, the CEO of Invalda INVL.
ESG factors are increasingly acknowledged as presenting material risks to investors. For example, consideration of environmental implications may involve focusing on the impact on climate change as well as on issues like greenhouse gases, resource depletion, waste and pollution, and deforestation. Regarding the social context, consideration is given to working conditions, respect for local communities, conflict, health and safety, and employee relations. Governance factors may include assessment of executive pay, attitudes to bribery and corruption, political lobbying and donations, board diversity and structure, and tax strategy.
Six specific responsible investment Principles are outlined by the PRI. They provide a menu of possible actions for incorporating ESG issues into investment practice – from investment analysis and decision-making to their incorporation into ownership policies and practices. Additionally, signatories to the Principles are encouraged to promote the Principles’ acceptance in the investment industry and to work together for their effective implementation. Signatory companies publicly report on their activities and their progress towards implementing the Principles through an annual reporting and assessment process.
“We are delighted to welcome Invalda INVL to the PRI,” said managing director, Fiona Reynolds. “They have a clear understanding that sustainable investments are ones that will thrive in the long-term and bring value to clients.”.
Invalda INVL AB, operating since 1991, is one of the leading asset management groups in the Baltic countries. Companies the group owns in Lithuania and Latvia manage more than 20 mutual, real estate and pension funds (2nd and 3rd pillar), alternative investments, individual portfolios, private equity and other financial instruments. The group’s companies manage more than EUR 520 million of assets entrusted to them by over 180 000 clients in Lithuania and Latvia as well as international investors. The shares of Invalda INVL have traded on the Nasdaq Baltic securities exchange since 1995.
More information about the PRI initiative: www.unpri.org/.