Principles for Responsible Investment Urges Investors to Enhance Focus on DEI
A Brief Summary
Principles for Responsible Investment (PRI), a UN-supported leading responsible investing organisation, released a report encouraging investors to improve their performance on diversity, equity, and inclusion (DEI) issues and outlining a series of actions for investors to take on addressing DEI in their own organisations, portfolios, and society at large.
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The report emphasises that DEI concerns are human rights issues and urges investors to pay equal attention to this area as they do to climate change. Furthermore, investors may influence how DEI concerns are seen not only inside their enterprises but also across society.
According to the PRI analysis, gender has received a lot of attention in DEI projects so far, though progress has been achieved in this area, there is still more work to be done. However, it states that expanding the DEI focus beyond this one problem to include ethnicity, sexual orientation, and a large range of diversity concerns is "important."
Inclusive Corporate Cultures, which focuses on embedding DEI within a firm and ensuring diverse representation from the board level to the workforce; Inclusive Business Models, which incorporate DEI into the design of products and services and across the value chain; and Inclusive Societies, which entails working to influence relevant policy levels and achieve progress on DEI across industries, are among the key action areas detailed in the report. Incorporating aspects like labour and value chain DEI performance into investment and stewardship procedures, as well as engaging with policymakers and stakeholders, are among the specific initiatives advised under these categories.