Investment institutions in 50 countries managing US $34 trillion to be covered by the world’s most comprehensive reporting regime for investor responsibility, accountability and sustainability from October 1. Signatories that fail to report will be delisted from the PRI in the second half of 2014.
LONDON, 30 September 2013 – The Principles for Responsible Investment (PRI), a United Nations-supported global investor initiative, today announced the launch of a new Reporting Framework designed to greatly enhance the level of transparency around the investment activities of its asset owner and investment manager signatories.
Reporting and assessment of signatory activities has been a core part of the PRI’s work since 2007 and the new PRI Reporting Framework, developed following an extensive two-year consultation process, marks a major step forward from the PRI’s previous reporting survey. For the first time, signatories who collectively manage US $34 trillion in assets will be required to report publicly on their progress towards implementing the PRI’s six Principles each year across a wider range of asset classes and investment activities, including voting and engagement; manager selection, appointment and monitoring; and the integration of environmental, social and governance (ESG) factors into investment decision-making processes and ownership practices.
By mid-2014, the PRI expects nearly 800 of its signatories to have used the Reporting Framework to disclose their policies, processes and performance in these areas in an objective and systematic way, using a common language to describe what they do. This transparency will enable investment managers, asset owners, beneficiaries and the broader public to make their own judgements about the degree of each signatory’s commitment to responsible investment.
Commenting on the launch, Wolfgang Engshuber, Chair of the PRI Advisory Council, said: “Calls for the global investment community to be more transparent about how it is responding to the governance and sustainability challenges that define our era have grown louder since the financial crisis. The PRI has responded with the launch of this new Framework, which will enable institutional investors to demonstrate how they are embedding material ESG factors into their processes and working to strengthen the governance of companies and the market as a whole.”