The European Stability Mechanism (ESM), the intergovernmental institution for euro-zone countries, has joined the United Nations-backed Principles for Responsible Investment (PRI) to integrate ESG factors within the investment of its own capital.
The pledge covers ESM’s “paid-in capital”, up to €80.5bn, provided by the 19 Eurozone members which are effectively its shareholders. Germany, Italy and France are the largest with 27%, 20% and 18% of shares respectively.
According to an ESM spokesperson, such portfolio includes exposure to about €300m invested in green bonds. The paid-in capital is not invested in its entirety as a variable amount is held on cash deposits.
Klaus Regling, Managing Director of the ESM, and formerly an economist with the IMF and the German Finance Ministry, said the ESM considers joining the PRI “an important step forward in our institution‐wide ESG efforts.”
Becoming a PRI signatory will not alter the investment gui…