Which principle in the Principles of Responsible Investment (PRI) is the 'engagement principle'?

The engagement principle is found in Principle 2 of the Principles for Responsible Investment (PRI). This principle emphasizes the importance of active engagement with the companies in which investors hold shares. It encourages signatories to incorporate ESG factors into their investment activities and to actively seek improvements in the sustainable practices of their portfolio companies.

By engaging with companies, investors can influence corporate behavior, promote better management of ESG risks, and ultimately drive positive change in the market. This principle reinforces the idea that investors should not only focus on financial returns but also on the broader impacts of their investments, which aligns with the core goals of responsible investing.

The other principles address different aspects of responsible investment, such as incorporating ESG factors into investment decision-making processes, promoting transparency, and working towards the growth of the PRI itself, but Principle 2 specifically focuses on the importance of engagement as a key strategy in achieving responsible investment outcomes.