PRI Board Chair, Martin Skancke, and CEO, Fiona Reynolds, highlighted the PRI’s key achievements over the last year, as well as outlining priorities for the next 12 months, at the SGM during PRI in Person in San Francisco – the biggest PRI in Person ever.
Mr Skancke gave an overview of the PRI Board’s work – which he said has focused on implementing the priority areas of the Blueprint for responsible investment. He explained that the PRI has done a consultation on the first Blueprint area, empowering asset owners.
“For the board now, the priority is overseeing the implementation of all the good suggestions that came from you [PRI signatories] during this consultation,” said Mr Skancke.
Leadership and accountability
Ms Reynolds announced that the PRI would be launching a signatory leaders’ group and annual awards to put the spotlight on good responsible investment practice.
The leaders’ group will use PRI reporting data to identify the signatories that are demonstrating best practices on the specific theme selected that year. In 2019, the PRI will focus on selection, appointment and monitoring of external managers by asset owner signatories.
The awards will showcase the most innovative and impactful projects our signatories have undertaken. Signatories will be invited to submit projects in five categories: ESG incorporation, active ownership, real-world impact, research, and emerging markets.
Entries will be evaluated by an independent panel of judges and the winners will be announced at PRI in Person 2019
Ms Reynolds said: “We want to showcase your success. We want to use it as a way of helping to inspire others to be able to take their responsible investment activities forward.”
We want to showcase your success. We want to use it as a way of helping to inspire others to be able to take their responsible investment activities forward
Fiona Reynolds, CEO, PRI
Advancing climate action
The annual conference had a spotlight on climate change, the number one signatory priority.
Ms Reynolds outlined steps the PRI has taken over the past year to empower signatories to tackle the issues presented by climate change.
For example, the PRI introduced pilot reporting indicators aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). Four hundred and eighty signatories reported on these pilot indicators, showing signatory momentum on the issue.
Despite this, Ms Reynolds said, Reporting Framework data indicates that only 9% of signatories are doing scenario analysis based on a two degree or lower scenario. To counter this, the PRI supported the launch of a new climate scenario analysis tool to help reduce barriers to climate scenario analysis.
Ms Reynolds also mentioned the launch of the Investor Agenda, a platform for showcasing the steps investors are taking to transition to a low-carbon economy, which the PRI is supporting along with several other investor groups. The PRI is also one of the partners of Climate Action 100+, which targets the world’s largest carbon-emitting companies.
“Climate Action 100+ is now the world’s largest ever investor engagement with public companies, so it’s a fantastic achievement and we think it’s going to be a significant gamechanger,” Ms Reynolds said.
The PRI signatory base now stands at over 2,000. Ms Reynolds explained how there has been a 14% increase in signatories over the past 12 months, noting significant growth in Asia and the US.
Ms Reynolds also thanked the nearly 500 signatories who give up their time to contribute to the PRI’s work through advisory committees and working groups.