Principles for Responsible Investment: a conversation with Selim Boudhabhay

The Principles for Responsible Investment (PRI) were established in 2006 under the leadership of Kofi Annan, who brought together 50 asset managers to shape the initiative. Since then, these principles have evolved into a global movement, endorsed by over 5,300 financial organizations. PRI aims to promote sustainable and responsible investment practices.

We spoke with Selim Boudhabhay, who oversees PRI’s operations in the Benelux region, about the organization’s role, the challenges it faces, and the evolution of responsible investing. He was one of our guest speakers and moderator at our thematic event on Social and Labour Rights in December.

The Role of PRI and Member Engagement

Boudhabhay emphasizes that joining PRI is voluntary but represents a commitment to responsible investing. “Membership is linked to the size of an organization, and each member is required to report to us, which demands time and resources,” he explains. “However, the way members engage varies significantly—some see it as a marketing tool, while others leverage our methodology to strengthen their sustainability policies. There are also organizations that actively collaborate with us to drive real change.”

From 2026, members will be required to report using an updated methodology. “This will align more closely with SFDR and CSRD regulations, as well as other initiatives, reducing the administrative burden for participants.”

Geographical Trends and Challenges

PRI is expanding globally, but not without hurdles. According to Boudhabhay, there is a general consensus on climate issues, but the social and governance aspects of ESG remain more complex. “In China, for instance, the lack of reliable data poses a major challenge. This makes financial decision-making more difficult, but the country is far from a ‘black hole.’ We have staff on the ground in China and several signatories from the region.”

PRI’s growth is particularly notable in Africa and the Middle East. “We recently hired someone in Africa and are seeing momentum in the Middle East as well. Interestingly, Sharia-compliant finance already incorporates certain ESG principles. I recently spoke with an investor from Qatar who feared we might single them out for criticism, but our goal is to support countries like these in their transition towards decarbonization.”

Other regions are also making strides in sustainable investment. Japan is developing a Green Bond framework and a taxonomy, while Canada and Singapore are working on their own classification systems.

Collaboration and Data Challenges

PRI collaborates closely with civil society organizations and NGOs such as the World Benchmark Alliance, the OECD, and the Heartland Initiative. Data also plays a crucial role in sustainable investing. “We complement data providers rather than compete with them,” Boudhabhay explains. “As a non-profit, PRI offers resources like our proxy voting database. At the same time, alternative data sources exist. For instance, CO₂ emissions data from the Copernicus satellite is publicly available. The challenge, however, is that the methodologies used by major data providers often remain a ‘black box.’”

Active Ownership as a Catalyst for Change

One of PRI’s core pillars is active ownership. “One of our key initiatives is ‘Active Ownership 2.0,’” Boudhabhay notes. “Through our global network, we foster a bottom-up approach, where multiple shareholders collectively apply pressure. Many of these interventions lead to tangible improvements. Take, for example, a mining company: if our efforts result in longer break times, leading to a decrease in fatal accidents, that’s a real, measurable impact.”

Sustainable Investment Beyond Public Markets

Responsible investing isn’t limited to publicly traded companies. Other asset classes, such as real estate and infrastructure, can have a profound impact. “The construction of a bridge, a hospital, or a parking facility can create both positive and negative social effects.”

When it comes to debt instruments and bonds, various countries are developing new frameworks. Japan is currently working on a Green Bond framework, and the Luxembourg Stock Exchange is a leader in green bonds. “Sovereign bonds present a greater challenge,” Boudhabhay acknowledges. “However, we recently ran a pilot project where 20 investors engaged in discussions with the Australian government.”

The Future of PRI and Sustainable Investing

PRI continues to evolve in its mission to strengthen sustainable investing worldwide. While regulatory shifts, data challenges, and regional disparities pose obstacles, Boudhabhay sees significant progress. “We need to work together with businesses, governments, and investors to drive impact. Active ownership and data transparency are key to making that happen.”