Environment protection, human capital and corporate governance: Bank of Russia sets principles for responsible investment
The Bank of Russia has developed recommendations on responsible investment for institutional investors, including banks, non-governmental pension funds, insurers, joint-stock investment funds, and their trustees.
Such investors are major capital sources for companies whose securities they purchase. Complying with these recommendations, investors will be able to enhance the reliability of and returns on investment for their clients, simultaneously contributing to the sustainable development of Russian companies and the implementation by them of responsible business principles.
The Bank of Russia recommends that, when choosing companies with comparable financial performance, investors give preference to those pursuing responsible environment protection and human capital development policies, ensuring high-quality corporate governance, and maintaining good relations with the communities of the regions of their operation.
The principles for responsible investment also imply that investors should act prudently and in good faith, efficiently exercise their equity rights, and avoid conflicts of interest. Investors are advised to prepare and publish their policies for communication with issuers.
These recommendations are advisory only. In addition, institutional investors are recommended to disclose the information on whether they adhere to the principles for responsible investment.