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Principles for Responsible Investment releases Vanguard's Transparency Report

20 July 2017 | Topical insights

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The Principles for Responsible Investment (PRI), an independent global alliance of asset owners, investment managers and investment service providers, has released Vanguard's first PRI Transparency Report.

The report details how Vanguard, a signatory since 2014, is following PRI's principles. Created with the support of the United Nations, the principles are designed to maintain long-term investment value and a more sustainable global financial system.

"Our PRI membership is a natural extension of the Vanguard mission," said Bill McNabb, Vanguard chairman and CEO.

"We've always sought to take a stand for all investors and advocate for their best interests," he said. "Our PRI Transparency Report underscores our commitment to responsible investment. Looking ahead, we will identify additional ways to maximise long-term value for our clients by applying these principles."

PRI Transparency Reports are completed annually by signatories to make public their activities that support the PRI principles. Vanguard is one of nearly 1,700 PRI member organisations in more than 50 countries, representing almost £50 trillion in managed assets.

PRI's Transparency Reports are available at its website, www.unpri.org.

Vanguard and responsible investment

Vanguard's own Responsible Investment Policy aligns with PRI's principles. As described in the policy, Vanguard supports responsible investment through:

  • Advocating for responsible corporate governance, particularly with the companies in which Vanguard funds invest, as a driver of long-term value creation.
  • Voting in support of proxy proposals that, in Vanguard's view, will improve our clients' long-term investing outcomes.
  • Acting on relevant environmental, social and governance opportunities or risks in Vanguard fund investments.

In other recent efforts to advance responsible investment, Vanguard joined with a group of institutional investors this year to form the Investor Stewardship Group, which established a framework for stewardship and governance in the United States for US-listed companies.

Vanguard also became a member of the Sustainability Accounting Standards Board's Investor Advisory Group in 2016, affirming its commitment to improving the quality and comparability of sustainability-related disclosures to investors. In addition, Vanguard signed the Commonsense Corporate Governance Principles, developed and signed by a group of investment, finance and corporate leaders in 2016.

Important information:

This article is designed for use by, and is directed only at, persons resident in the UK.

The material contained in this article is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this article does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this article when making any investment decisions.

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

The opinions expressed in this article are those of individual speakers and may not be representative of Vanguard Asset Management, Limited.

VAM-2017-06-26-4849

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