ICICI Prudential Life Insurance has become the first Indian insurance company to sign the United Nations-supported Principles for Responsible Investment (UNPRI). The company has thereby reaffirmed its commitment towards Environment, Social and Governance (ESG) issues.
What is UNPRI?
The UNPRI is the world’s leading proponent of responsible investment. It works:
– to understand the investment implications of environmental, social and governance (ESG) factors;
– to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The PRI acts in the long-term interests:
– of its signatories;
– of the financial markets and economies in which they operate;
– and ultimately of the environment and society as a whole.
The PRI encourages investors to use responsible investment to enhance returns and better manage risks. It does not operate for its own profit. It engages with global policymakers but is not associated with any government. It is supported by the United Nations but is not a part of it.
What are the Principles of Responsible Investment?
There are six Principles of Responsible Investment. These principles are developed by investors, for investors. They offer a menu of possible actions for incorporating ESG issues into investment practice. In implementing them, signatories contribute to developing a more sustainable global financial system.
The Principles of Responsible Investment are as follows:
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
ICICI Prudential Life Insurance – A signatory of UNPRI
In its journey towards promoting sustainability, the ICICI Prudential Life Insurance is integrating ESG factors into its investment management framework. As a responsible corporate, it has also adopted sustainability principles across its business activities. With Assets under Management of over Rs 2.37 trillion, ICICI Prudential Life Insurance is a key institutional investor and believes integrating the ESG framework in its investment management practices will ensure sustainable value creation for all stakeholders. The Company also engages with investee companies on ESG issues to ensure the business operates in a responsible and sustainable manner, benefitting the environment, society and investors.
Mr Manish Kumar, Chief Investment Officer, ICICI Prudential Life Insurance said, “We are delighted to be the first Indian insurance company to become a signatory to the UNPRI. This reinforces our commitment towards integrating a responsible framework to promote Environmental, Social and Governance factors in our investment management decisions. Climate change is impacting lives and livelihoods around us and as one of the largest domestic financial institutions in the country, it is incumbent on us to act proactively and responsibly on ESG factors to save the planet. As part of our commitment towards promoting sustainable investing we recently launched the ‘Sustainable Equity Fund’, an ESG-focused fund, and in the process became the first life insurance company in India to do so. Promoting sustainability is a natural extension of our vision of building an enduring institution which serves the protection and long-term saving needs of customers with sensitivity. We firmly believe that adopting the Principles of Responsible Investing will nudge corporations to enhance focus on ESG initiatives to build sustainable businesses which in-turn generate superior returns for all stakeholders.”