Which organization is known for establishing principles for responsible investment?

Prepare for the Certified Environmental Social and Governance Analyst (CESGA) EFFAS exam. Utilize flashcards and multiple choice questions with hints and explanations. Boost your readiness!

The organization known for establishing principles for responsible investment is the United Nations Principles for Responsible Investment (UN PRI). This initiative was launched in 2006 to encourage institutional investors to incorporate environmental, social, and governance (ESG) factors into their investment decisions and ownership practices. The UN PRI provides a framework for investors to understand the impact their investments can have on sustainable development and how alignment with these principles can lead to more sustainable outcomes both financially and for society as a whole.

The principles outlined by the UN PRI promote the integration of ESG issues into investment analysis and decision-making processes, active ownership, and the effective disclosure of ESG-related practices and performance. This makes the UN PRI a leading authority in promoting responsible investment across the global financial landscape.

The other organizations mentioned have distinct roles: GRI focuses on sustainability reporting standards, the OECD deals with economic policy frameworks and guidelines, and ESG Ratings pertain to assessments of companies' performance regarding environmental, social, and governance factors. While they play important roles in the broader ESG context, none are specifically centered on the principles of responsible investment in the same way as the UN PRI.

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