Principles for Responsible Investment (PRI):
The PRI framework outlines various engagement dynamics that create value in responsible investing.
Political Dynamics:
These involve building relationships with policymakers, influencing regulations, and advocating for better corporate governance standards.
Political engagement helps create a supportive regulatory environment for sustainable business practices.
Learning Dynamics:
Learning dynamics focus on enhancing knowledge and understanding of ESG issues through continuous learning and information exchange.
This includes engaging with companies to understand their ESG challenges and opportunities better.
Combination of Both Dynamics:
Both political and learning dynamics are crucial as they complement each other. Political dynamics ensure a supportive external environment, while learning dynamics enhance internal capabilities and understanding.
CFA ESG Investing Reference:
According to the PRI, successful engagement that creates value involves both political and learning dynamics, as outlined in their engagement framework.
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