Institutional Clients

Principles for Responsible Investment (PRI)


Itaú Asset Management has reconfirmed its adherence to the Principles for Responsible Investment (PRI) of the United Nations. This follows up on a process launched in 2008 by Unibanco Asset Management, the first major Brazilian asset manager to sign the PRI.

These voluntary principles attempt to help steer the practices of actors in the financial and capital markets into line with the concept of sustainable development – adding the elements of environmental and social responsibility and good corporate governance (ESG) to the decision-making process for investments and shareholder practices. The principles are based on the premise that ESG factors can affect the performance of investments and that they should be properly taken into account so that expected returns can be considered in light of potential risks.

The implementation of the principles will engender a better understanding of relevant issues which, in turn, should help increase profits and reduce risks. There is growing evidence that ESG issues can affect the performance of investment portfolios, especially in the long-run.


Commitment to Sustainability

Itaú’s sustainable asset management offerings span active as well as passive strategies that integrate ESG issues in its research activities. In Itaú Asset Management’s vision, companies that integrate ESG-related practices are likely to present a superior capacity to generate positive cash flows as well as stakeholder value on the long term. In accordance with PRI’s first principle, Itaú Asset Management has developed and implemented its proprietary methodology integrating ESG-related parameters into its investment analysis and decision-making process. This supports the goal of generating alpha through the identification of mispriced risks as well as opportunities in investee and potential investee companies.


About the PRI

The PRI was developed in 2005 by representatives of 20 institutional investors from 12 countries together with former U.N. Secretary General Kofi Annan. The project is coordinated by the United Nations Environment Program Finance Initiative (UNEP FI) and United Nations Global Compact. By 2010 it boasted over 730 signatories around the world. The initiative also helps investors work together to address systemic problems that, if corrected, would help produce market conditions that would be more stable, responsible and profitable in general. For more information about the PRI, visit http://www.unpri.org/principles.


The Principles for Responsible Investment

1 – We will incorporate ESG issues into investment analysis and decision-making processes.

2 – We will be active owners and incorporate ESG issues into our ownership policies and practices.

3 – We will seek appropriate disclosure on ESG issues by the entities in which we invest.

4 – We will promote acceptance and implementation of the principles within the investment industry.

5 – We will work together to enhance our effectiveness in implementing the principles.

6 – We will each report on our activities and progress towards implementing the principles.