Euro Zone Bailout Fund Joins PRI

    Stockholm (NordSIP) – At the end of February, the European Stability Mechanism announced it had signed on to the United Nations Principles for Responsible Investment (PRI). The European bailout mechanism – a descendant of the European Financial Stability Fund that rescued the governments of Greece, Ireland, Portugal and Cyprus during the Eurozone sovereign debt crisis – became a full member of the PRI on March 3rd.

    The PRI is a global network for investors committed to integrating environmental, social, and governance (ESG) considerations into their investment practices. The PRI counted 2993 members, including investment funds and central banks as of March 5th, 2020, and over US$90 trillion in AUM at the end of 2019.

    “We consider that adhering to the Principles for Responsible Investment is an important and positive step forward in our institution‐wide ESG efforts,” Klaus Regling, Managing Director of the ESM, said on the occasion of this announcement.

    The preparatory work to apply to the PRI began one year ago, according to the ESM. As a PRI signatory, the ESM will include ESG criteria within its investment processes. The ESM also intends to collaborate with peer institutions to promote sustainable investment practices further.

    “The high credit quality and liquidity of the ESM’s paid‐in capital will be upheld, while incorporating ESG criteria into our investment analysis,” added Kalin Anev Janse, CFO of the ESM. “This will enrich our investment approach, with the aim of contributing positively towards a more sustainable economy.”

    “We are delighted to welcome the ESM to the PRI, and their commitment to ensuring that ESG issues play a significant role across the organisation’s investment strategies,” said Fiona Reynolds, CEO of the PRI.

    Since the beginning of the year, 15 new organisations have joined the PRI, from Skandinavia. Of these, six were Danish, three were Norwegian, one was Finnish, and five were Swedish, including Erik Penser Bank (EPB), which became a member on February 12th.

    Image © ESM

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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