Principles for Responsible Investment

Principles for Responsible Investment

The LA Retirement Fund is proud to have become a signatory of the United Nations backed Principles for Responsible Investment (PRI) on 1 January 2016.  At the time, it was one of the first South African retirement funds to do so.

The PRI is the world’s leading independent proponent of responsible investment.  The organisation encourages investors to use responsible investment to enhance returns and better manage risks.  It engages global policymakers and it is supported by the United Nations.  The PRI believes that an economically efficient, sustainable global financial system is a necessity for long-term value creation.  Such a system will reward long-term, responsible investment and benefit the environment and society as a whole.

In becoming a signatory, the Board of Trustees of the LA Retirement Fund aspires to the PRI’s six Principles for Responsible Investing that provide a number of ways for the Fund to incorporate ESG (environment, social and corporate governance) issues into its investment practice.  These Principles were developed by an international group of institutional investors reflecting the increasing relevance of ESG issues to investment practices. The process was convened by the United Nations Secretary-General. By committing to these Principles, the Fund wishes to contribute towards developing a more sustainable global financial system.  The six PRI principles to which the Fund is committed are as follows:

  1. We will incorporate ESG issues into investment analysis and decision-making processes,
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices,
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest,
  4. We will promote acceptance and implementation of the Principles within the investment industry,
  5. We will work together to enhance our effectiveness in implementing the Principles,
  6. We will report on our activities and progress towards implementing the Principles.

The Board of Trustees is also supportive of the Code for Responsible Investing in South Africa (CRISA).