Good decisions need good data
Driving meaningful ESG data throughout markets is a key area of our 10-year Blueprint, to support signatories in considering their investment risks and returns, and to help them measure real-world outcomes.
To meet these commitments and help to make ESG data more consistent and comparable, we have continued to support efforts aimed at harmonising corporate ESG reporting in the interests of investor decision making, including engaging with the IFRS Foundation’s sustainability reporting proposal and the European Union’s Non-Financial Reporting Directive review.
However, harmonising existing standards is only part of the overall pursuit of driving meaningful data for responsible investors. As markets are increasingly focused on the alignment or contribution of corporate and investor activity in meeting sustainability goals, the data required to make better investment decisions needs to be reexamined.
As a result, we published a paper assessing the basis of an end-to-end sustainability reporting system and have proposed a framework that incorporates financial materiality and performance linked to making progress on sustainability outcomes. We will take this work forward as part of the next three-year strategy (see below).
Driving meaningful data in our 2021-24 strategy
Our work over the next three years will focus on contributing to the development of a global sustainability reporting system for investors and corporations. We will accelerate the inclusion of sustainability outcomes data alongside ESG risk/opportunity and financial data in our reporting and assessment (across asset classes and priority ESG issues) and externally with regulators, standard setters, and other investor initiatives.
- address overlaps and gaps in sustainability reporting to investors;
- support the development and uptake of harmonised and meaningful data on sustainability performance and outcomes.
Developing the Reporting Framework
The new PRI Reporting Framework includes several mandatory outcomes-focused questions that cover the processes signatories use to identify and understand the intended or unintended sustainability outcomes of their investment activities. This is linked to our work on enabling real-world impact.