Why investors are assessed
The assessment aims to fulfil these objectives:
- Facilitate learning and development, outlining how signatories’ implementation of responsible investment compares year-on-year, across asset classes, and with peers at the local and global level by providing a confidential report.
- Identify how signatories can improve their RI practices, and
- Allow asset owners to focus their discussions with investment managers on responsible investment activities and capabilities where the managers’ assessment has been shared with them.
Assessment changes for 2021
We are changing the way we are providing assessment to signatories in 2021. Assessment will become more challenging and more consistent between modules to reflect the current state of the responsible investment market, and to showcase the range of responsible investment practices in the industry. Scores will continue to be confidential, and be provided per module or asset class, with no overall score.
Scoring methodology recalibration
The scoring methodology for the 2021 Reporting Framework has been recalibrated to make assessment more challenging and is based on the following guidelines:
- The primary focus will remain on a signatory’s responsible investment implementation across their overall investment process, rather than looking only at their investment in ESG products.
- The scope of implementation of specific responsible investment practices, for example the percentage of AUM covered.
- The level of sophistication of the responsible investment practice for the majority of AUM.
- Increasing the focus on consistency, including how group policies are applied in different asset classes or sub-categories, or how policies are implemented by external managers or service providers.
- Having more clarity on the timeframe of practices carried out.
- The inclusion of some outcomes -related questions in the assessed ‘core’ indicators.
Scores will continue to be confidential, and be provided per module or asset class, with no overall organisation score given. The assessment methodology has evolved to reflect the changes in the Reporting Framework, in particular:
- Stewardship is integrated throughout the Reporting Framework; therefore, it will not receive a separate score.
- Only ‘core’ questions - which are closed ended questions, mandatory to report on and publish - will be assessed.
- Module scores will move from alphabetical grading (A+ to E) to a new numerical grading system ranging from 1 to 5 stars, to reflect that scores for the 2021 reporting cycle cannot be compared to previous years. The lowest possible grade will be one star, allocated to those whose responsible investment behaviour is at the lower end of what is expected from signatories. The highest score will be five stars and it will be awarded to those signatories who demonstrate leading practices within the responsible investment industry.
- Indicator scores will move from 0 - 3 stars to a more granular, points-based system, whereby 100 points are available per indicator within the initial phase of assessment. A multiplier then is applied to the indicator scores, weighted based on their relative importance with respect to responsible investment practices and/or the PRI’s overall mission. The assessment is calculated by categorising the questions into three distinct classes: “Low” weighted questions being multiplied by 1, “moderate” questions by 1.5, and “high” by 2.
- Due to the scope of the scoring recalibration which has been undertaken in the context of the Reporting and Assessment review, both the question-level and the module-level assessment methodology are preliminary and subject to amendments and finalisation shortly after the 2021 reporting cycle. Any such changes will be communicated alongside the 2021 outputs.
How PRI use assessment data
Since the PRI started assessment in 2014, we have been able to compile substantial meaningful assessment data and make them available for the financial community.
You will find below a selection of charts related to assessment performance.
- Strategy and Governance bands of signatories with >50% AUM by main asset class (2017 data)
- Strategy and Governance bands (2017) comparing first-time reporter asset owner signatories with other asset owner signatories
Frequently asked questions
Will signatories be assessed on their responses to the new Reporting Framework in 2021?
Yes, we will continue to assess signatories on their responses to the Reporting Framework. This will be based on the new assessment methodology, which will be confirmed later in the year.
Will the assessment methodology be public at the launch of the new Reporting Framework?
View the 2021 investor reporting guides for a summary of the assessment methodology and detailed guidance on the framework.
Will the assessment scores be confidential?
Yes, the assessment scores will remain confidential with the new Reporting Framework.
Will there be a firm-level score?
No, there will only be module-level scores for each module a signatory completes
Will we be able to compare our scores between 2021 and previous years?
The assessment methodology will evolve to reflect the changes in the Reporting Framework. Module scores will move from band scoring (A+ to E) to a new banding system and indicator scores will move from 0-3 stars to a more granular points-based system. Therefore, the 2021 reporting scores will not be comparable to previous years.
When will I receive my Assessment Report?
Your Assessment Report will be available in July each reporting year.
Can I opt out of getting an Assessment Report?
Unfortunately, you can’t opt out as this is automatically provided to each of our signatories along with the Transparency Report. You can choose to not consult or download your Assessment Report but the PRI strongly encourages signatories to consult it.
I am a first-time reporter. When will I receive my first Assessment Report?
If you are a new signatory, you will have the first reporting cycle as a “grace” or voluntary reporting period. Reporting will become mandatory afterwards. If you choose to report in your voluntary year, your organisation will receive an Assessment Report in July.’
I don’t think my assessment scores are correct. Who can I contact?
The Assessment Report is based on reported data. Once the reporting period is closed, the PRI scores the most up-to-date response. If you have any question regarding your assessment results, please contact us as soon as possible.
Where can I find information on the Reporting Framework modules?
You can find information about the Reporting Framework modules in investor reporting guidance.
Will my organisation receive a general assessment score?
The assessment does not rate signatories at an organisational level. Therefore, you won’t receive any general assessment score for your organisation.
Does the assessment favour any particular investment strategy or engagement method?
The assessment does not promote any specific investment strategy or engagement method. Its aim is to showcase best practices in responsible investment across asset classes worldwide. These activities are assessed based on equal value, regardless of whether the process is conducted internally or externally, whether the strategy is screening and/or integration, or whether an engagement is individual, collaborative or through a service provider.
Can I calculate my own assessment scores?
PRI publishes the whole Reporting Framework with indicator-level methodology as a guide for signatories while reporting to the questions. As the scoring methodology is changing significantly in 2021, some aspects may be subject to finalisation after the reporting period, and therefore we do not recommend signatories conduct their own calculations for an assessment score as they may be based on an outdated methodology.
Why does the assessment change over time?
It is important the PRI keeps up to date with the fast-moving changes in the responsible investment industry. Therefore, indicators can be added, modified or even deleted.
Sharing Assessment Reports
Can I share my Assessment Report?
You can decide to share your Assessment Report, either with signatories or non-signatories. A shared Assessment Report must allow the user to find the related full Transparency Report, refer to the scoring methodology, and avoid taking any individual module score out of context (e.g. you must not report a module score as your overall PRI score).
Will the PRI share my Assessment Report with other signatories?
The Assessment Report is confidential – you can choose to publish your Assessment Report, but the PRI won’t publish your report without your permission.
The reporting process
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How investors are assessed on their reporting