Navigating UN Disclosure & Reporting Initiatives

Which UN Agencies are driving the principal ESG work streams and what are they doing?

1. UN Framework Convention on Climate Change (UNFCCC)
   Established in 1992 and ratified by 197 countries, it is known as Parties to the Convention. Their task is to keep greenhouse gas emissions caused by human activities below levels at which they become dangerous to the world’s climate. The UNFCCC has two key agreements under its umbrella, the Kyoto Protocol and the Paris Agreement.
   
   The Convention’s secretariat provides technical expertise, information exchange and analysis in the pursuit of its goals. It convenes several inter-governmental sessions each year. The most important is the annual Conference of the Parties, also known as COP.
   
   
2. UN Department of Economic and Social Affairs (UN DESA)
   
   The UN DESA is the secretariat for the Sustainable Development Goals (SDGs). The SDGs were adopted in 2015 and are one of the principal anchors of ESG activity by businesses, investors and banks. There are 17 SGDs, each with an underlying goal, and between them, they have 169 targets.
   
   
3. UN Environment Programme’s Finance Initiative (UNEP FI)
   
   The UNEP FI is a public-private partnership between the UN and the financial sector, whose aim is to mobilise and channel private finance to sustainable development. It was the UNEP FI, together with fund managers and brokers, who in 2004 coined the term ESG. The UNEP FIs contributions include the Principles for Responsible Banking and the Principles for Responsible Investment. 

The six principles of the PRB include: 

• Alignment of business strategy to the SDGs, Paris Agreement and others
• Impact and target setting
• Working with clients and customers
• Engaging with stakeholders
• Effective governance and culture
• Increase transparency and accountability 

The six principles of the PRI include: 

• Incorporate ESG issues into investment analysis and decision-making processes
• Be active owners and incorporate ESG issues into ownership policies and practices
• Seek appropriate disclosure on ESG issues by the entities in which companies invest
• Promote acceptance and implementation of the Principles within the investment industry
• Work together to enhance our effectiveness in implementing the Principles
• Report on activities and progress towards implementing the Principles