Category: ESG fundamentals · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-10
The Principles for Responsible Investment (PRI) are a voluntary, UN-supported framework launched on 27 April 2006 at the New York Stock Exchange, consisting of six principles for incorporating environmental, social and governance issues into investment decision-making and ownership practices. UK insurers are major signatories through their asset management subsidiaries and as institutional investors.
Category: ESG fundamentals Also known as: UN PRI, Principles for Responsible Investment, PRI Established / Date: 27 April 2006 (launched by then-UN Secretary-General Kofi Annan) Related concepts: PSI Principles for Sustainable Insurance, ESG, ESG insurance underwriting
The PRI consists of six principles committing signatories to: (1) incorporate ESG issues into investment analysis and decision-making processes; (2) be active owners and incorporate ESG issues into ownership policies and practices; (3) seek appropriate disclosure on ESG issues by the entities in which they invest; (4) promote acceptance and implementation of the Principles within the investment industry; (5) work together to enhance their effectiveness in implementing the Principles; and (6) report on their activities and progress towards implementing the Principles [1].
The PRI is supported by the United Nations through the UN Environment Programme Finance Initiative and the UN Global Compact, but the signatory organisation, Principles for Responsible Investment Association, is incorporated as a UK company limited by guarantee (registered 7207947 with Companies House) and headquartered in London. As of 2025 the PRI has more than 5,300 signatories worldwide with combined assets under management exceeding US$120 trillion.
Signatories report annually through the PRI Reporting Framework, with summary and detailed Transparency Reports published. Mandatory reporting was strengthened from the 2021 reporting cycle following methodology consultation, and minimum requirements for continued signatory status were introduced.
PRI signature is voluntary and not directly mandated by UK statute or regulator rule. However, the Principles have been embedded into UK financial services practice and indirectly into regulatory expectations. The FCA’s PS21/24 and PS23/16 on sustainability disclosures and investment labels build on concepts that the PRI helped establish, including ESG integration, stewardship and transparency [2]. The Financial Reporting Council’s UK Stewardship Code, most recently revised in 2020, applies parallel principles to UK institutional investors and asset managers.
Section 414CB of the Companies Act 2006 climate disclosure requirements and section 54 of the Modern Slavery Act 2015 also reflect transparency expectations consistent with the PRI’s third principle [3][4]. Lloyd’s of London and many UK insurers’ asset management subsidiaries are PRI signatories and report annually under the PRI Reporting Framework.
UK insurers’ asset management businesses are heavily represented among PRI signatories. Aviva Investors, Legal & General Investment Management, M&G plc, Phoenix Group asset management entities and many smaller UK insurance investment teams are signatories. The PRI’s six principles inform internal stewardship policies, voting records and ESG integration methodologies.
The PRI overlaps closely with the Principles for Sustainable Insurance (PSI), launched in June 2012 by the UN Environment Programme Finance Initiative [5]. While the PRI focuses on investment activities, the PSI addresses insurance underwriting and product development. Many UK insurance groups are signatories to both. Lloyd’s of London joined the PSI in 2021 and supports the broader PRI framework through its market participants.
UK insurers’ PRI Transparency Reports provide insight into ESG integration methodologies, exclusion lists and stewardship priorities, which can inform broker assessment of insurer ESG credentials in line with the FCA’s expectations under PS23/16.
For UK companies seeking insurance, the insurer’s PRI signatory status is one indicator of investment-side ESG commitment but does not directly determine underwriting outcomes. However, signature is often correlated with a developed ESG underwriting framework and a more rigorous ESG due diligence process.
For UK companies seeking institutional investment, the PRI is materially more directly relevant: pension funds, asset managers and insurance investment teams that are PRI signatories apply ESG integration to investee analysis and stewardship engagement, including proxy voting, that may influence governance, climate strategy and disclosure expectations.
A UK pension scheme acting through a PRI-signatory investment manager engages with a UK FTSE 250 industrial company on its climate transition plan. The manager applies its PRI-aligned stewardship policy, attending the company’s annual general meeting and voting against the re-election of the chair of the remuneration committee on the basis of inadequate linkage between executive remuneration and climate transition KPIs. The engagement, recorded in the manager’s PRI Transparency Report, prompts the company to enhance its transition-linked remuneration arrangements ahead of the next AGM.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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