HISTORY OF PRI REPORTING AND ASSESSMENT
DEVELOPING THE REPORTING FRAMEWORK
After running a reporting survey for five years, in May 2011 the PRI’s signatory-elected governing body, the Advisory Council1, agreed to develop a more robust Reporting Framework, supported by a new Assessment Methodology.
This redevelopment of the Reporting and Assessment process saw the PRI undertake the most extensive consultation in its history. Signatories were involved in its design from the outset and in the governance bodies and committees that oversaw its development.
A pilot version of the Reporting Framework was launched for signatory testing in June 2012. Multiple international consultations and module-specific workshops held around the world resulted in thousands of points of signatory feedback, which fed into the Reporting Framework that launched in October 2013.
For the first two reporting cycles, the fixed income module was in a pilot phase. It was redeveloped for the 2015/16 cycle following another round of extensive consultation with signatories, to better capture how responsible investment is practiced in this asset class. The infrastructure module is still in a pilot phase and is voluntary to report on.
More than 800 signatories reported under the new Reporting Framework in its first year. Now well over 1,000 do, with more joining every year.
responded to the public consultation.
submitted the pilot report.
reported first year.
DEVELOPING THE ASSESSMENT METHODOLOGY
Efforts to develop a new methodology against which to assess signatories’ responses to the Reporting Framework began in early 2012. Assessing signatories was intended to provide a learning tool for signatories and enable asset owners to engage investment managers over their responsible investment approach and performance.
Following extensive consultation with signatories throughout the year, a pilot group of about 50 signatories trialled the new methodology, resulting in a high-level overview of the Assessment Methodology being released in May 2013.
This was piloted for two full reporting cycles (2013/14 and 2014/15), in order to develop a thorough understanding of what good practice in responsible investment looks like. During this period, signatory comment was collected through an online consultation and webinars, as well as at PRI in Person and about 200 one-to-one sessions globally. Pilot versions of the Assessment Reports were published at the end of each of the two pilot years.
The completed Assessment Methodology was launched in late 2015 and used for the first time in the 2015/16 cycle.
Key changes to the pilot methodology included two new bands, to better distinguish (within each module):
- the very top-scoring signatories from those simply doing well;
- those not implementing responsible investment at all from those who are active but at an early stage.
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