As part of its objective of promoting environmental, social, and governance (ESG) factors of responsibility, Korona Invest has signed the Principles for Responsible Investment (PRI) supported by the UN.
“We consider becoming a signatory to be important in our efforts to ensure that our operations follow responsible investment principles at both Korona Invest and in the target companies managed by our funds,” says Pasi Lehtinen, Managing Director at Korona Invest.
The PRI organisation is an international network of investors whose mission is to achieve a sustainable global financial system by encouraging the adoption of the Principles and collaboration. Its objective is to understand the effects of sustainable development for investors and support the signatories in adopting these factors as part of their investment decisions and ownership practices. In addition, the PRI provides a framework for investment operators to evaluate their ESG factors and operational development.
Signing and commitment are voluntary and require annual transparent reporting on the Principles in practice.
The PRI signatories commit to implementing six principles:
- Incorporate ESG issues into investment analysis and decision-making processes.
- Be active owners and incorporate ESG issues into ownership policies and practices.
- Seek appropriate disclosure on ESG issues by the entities invested in.
- Promote acceptance and implementation of the Principles within the investment industry.
- Work together to enhance collective effectiveness in implementing the Principles.
- Report on activities and progress towards implementing the Principles.
“By implementing the Principles, the signatories contribute to developing a more sustainable global financial system. Private equity investors have a duty to act responsibly, and we believe in including environmental, social, and governance factors at our target companies as an important part of sustainable value creation. Applying the Principles in practice also better aligns investors with the larger goals of society,” says Lehtinen.