GovernanceMetrics International

GovernanceMetrics International has been a signatory of the Principles for Responsible Investment since their inception in 2006. The Principles were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance (ESG) issues to investment practices. There is a growing view among investment professionals that ESG issues can affect the performance of investment portfolios. The Principles for Responsible Investment provide the framework for considering these issues in everyday business practices and are as follows:

We will incorporate ESG issues into investment analysis and decision-making processes.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
We will promote acceptance and implementation of the Principles within the investment industry.
We will work together to enhance our effectiveness in implementing the Principles.
We will each report on our activities and progress towards implementing the Principles.

As a governance research and ratings firm and a signatory of the Principles, addressing ESG issues is one of the fundamental objectives of GMI’s business model. GMI was founded to provide institutional investors an objective way of assessing corporate governance risk as well as governance leaders in their portfolios. GMI research has in fact shown that companies which emphasize corporate governance and transparency can, over time, generate superior returns and economic performance and lower their cost of capital.