PRI sets out key action areas for DEI
February 11, 2022
The report comes as inequalities are made worse by the Covid-19 pandemic.
Investors and corporations need to take a balanced approach to address each of the three pillars of diversity, equity and inclusion (DEI), the United Nation’s Principles for Responsible Investment (PRI) has said.
The PRI this week released a report highlighting key areas for investors to act on DEI across each of the three areas. Addressing diversity alone will not be enough to ensure optimum outcomes for everyone, the organisation argued.
The report emphasised the need for investors to act and stated that strong DEI within a company can “positively affect decision-making, levels of employee engagement, reputation amongst stakeholders, innovation and access to untapped markets”.
The PRI called for investors to actively encourage inclusive corporate cultures, inclusive business models, and inclusive societies.
The concept of inclusive corporate cultures focuses on direct employees of investors and investee companies. The report stated that an inclusive corporate culture should reflect the makeup of the society in which it operates, and investors should pay attention to DEI issues in staff recruitment, retention, development, and promotion processes.
Meanwhile, the report said for inclusive business models, investors should seek to incorporate DEI considerations into the design of products and services, and extend these into value chains.
For inclusive societies, the PRI highlighted the DEI impacts on disadvantaged groups and communities, and how they can be given means of support and methods to thrive. The PRI’s report states that these aims cannot be achieved only by investors and companies, but instead requires coordinated efforts across a range of policy areas.
The report follows multiple research projects that have found inequalities to have been exacerbated by the Covid-19 pandemic. Efforts to address these issues are not widespread across industries and geographies, the PRI said.
The PRI stated in the report that it was setting out a multi-year work programme to support investors in DEI action. The programme will share best practices, provide guidance on stewardship, identify data points, and support asset owners.
Read more about diversity, equity and inclusion in Minerva’s collaboration with the Workforce Disclosure Initiative.
Last Updated: 11 February 2022