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PRI to appoint independent advisor for governance review

06 January 2014

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The Principles for Responsible Investment (PRI) Initiative is planning to appoint an external independent advisor to review the organisation's governance.

The decision follows a request by eight Danish pension fund signatories to delist from the PRI due to governance concerns.

The appointed advisor will work with the PRI's advisory council's governance committee and the new council chair to carry out the review.

Fiona Reynolds, PRI managing director, said that improving and adapting the PRI's governance processes to ensure they meet the needs of signatories remains a priority for the organisation.

She said: "Strong and effective governance is the foundation upon which all of the PRI's work and success ultimately rests.

"The PRI recognises that as it calls on investors globally to drive improvements in the governance of companies and markets, it must set an example and match the levels of accountability and transparency it expects of its signatories."

The PRI advisory council's governance committee will work with the advisory council to finalise the scope for the governance review and the request for tender by the end of January.

PRI signatories will have an opportunity to provide input into the scope, and the governance committee will oversee the review process until a new council chair is appointed, which is expected to happen by the end of March 2014.

The council and board agreed on 30 September to carry out a formal review f the PRI's governance structure and processes and a letter about the plan was sent to all signatories in late October, the organisation said.

Reynolds said: "The PRI is committed to ensuring this review is carried out to the highest standards of independence, impartiality, transparency and accountability, and that its findings and recommendations – along with any subsequent changes to PRI governance as a result of the review – are clear, practical, understood and supported by signatories via our decision-making processes."

The PRI will update signatories on the status of the governance review in April, following a joint meeting of the advisory council and board.

First published 06.01.2014