We are pleased to share that the 2023 Reporting Framework has now been published, representing an important milestone in the delivery of a reporting process which is both mission-led and signatory-centric. An update on accountability – minimum requirements and the Leaders’ Group – is also provided.
There have been changes to the Reporting Framework since the 2021 Pilot and releasing the 2023 Reporting Framework in January provides signatories with more than three months to prepare their responses before the reporting cycle opens in mid-May. This release is a key step forward in the development of the PRI’s Reporting and Assessment functionality as the industry-leading reporting framework, globally.
The materials released today include an overview and structure guide to the Reporting Framework, the full Reporting Framework modules, and a guide to the logic that determines which questions are applicable to each signatory. It also includes supporting guidance such as the Reporting Framework glossary, high-level assessment methodology, and a diagram showing which modules are relevant to each signatory type (asset owner or investment manager).
Signatories will be able to access the Reporting Tool once the reporting cycle opens in mid-May. Information on how the PRI has responded to signatory feedback when improving Reporting Tool functionalities, how to navigate the tool when reporting, and how to access it, will be shared ahead of the launch of the reporting cycle.
Incorporating signatory feedback into the 2023 Reporting Framework
The development of the 2023 Reporting Framework has been signatory-centric. The core focus of the PRI was analysing signatory feedback from the 2021 pilot reporting year and identifying key improvements whilst being led by the PRI’s mission. Key feedback focussed on improving clarity, consistency and applicability, as well as reducing the reporting effort for signatories. Signatories will benefit from the following improvements:
- We reviewed the terminology in the framework and updated the Reporting Framework glossary; and
- We revised questions and response options to minimise ambiguity.
Improved consistency and applicability:
- We conducted systematic applicability checks to all indicators;
- We adjusted logic paths or assessment criteria where practices were deemed not applicable to specific groups of signatories, so that signatories are not penalised for not being able to adopt certain practices;
- We restructured some sections for a clearer and better aligned structure across the 2023 Reporting Framework and with other widely recognised frameworks (e.g. TCFD, TNFD); and
- We removed asset class module reporting for asset owners (however, they will still report on the selection, appointment and monitoring of external managers, and their stewardship activities).
Reduced reporting effort:
- We reduced the granularity of data requested;
- We decreased the overall number of indicators; and
- We achieved efficiencies by implementing simpler indicator structures.
The existing minimum requirements will remain in place for the 2023 reporting cycle, and their review will continue in 2023.
The minimum requirements were introduced in 2018 to strengthen accountability amongst investor signatories by providing a baseline performance requirement, determined through reporting. To keep pace with a rapidly changing landscape, PRI committed to reviewing the minimum requirements to ensure they remain fit-for-purpose, and began a formal review process in 2020. Following the 2021 reporting cycle, the review of the minimum requirements was put on hold while PRI focussed on improving the quality of the 2021 reporting dataset, delivering the 2021 reporting outputs and developing the improved 2023 Reporting Framework.
Recognising the significant recent growth in the PRI’s signatory base, meaning that many signatories were not included in the 2020 consultation and have not yet participated in a reporting cycle, the decision has been taken to continue the review of the minimum requirements into 2023. This will allow the PRI to account for signatory feedback and reporting data that more accurately reflects our current signatory base and broader market developments.
Since their introduction, the existing minimum requirements have been successful in driving change amongst the PRI’s investor signatory base. Whilst we determine what shape the continued review will take, we are confident that the existing minimum requirements deliver appropriate accountability across our signatory base and remain important considerations for investors. You can read more about this decision and the current requirements on the Minimum Requirements page.
The Leader’s Group will be paused in 2023. Due to the significant changes that the Reporting Framework has undergone in response to signatory feedback, including the removal of asset class reporting for asset owner signatories, the methodology used to identify PRI’s annual Leaders’ Group is no longer applicable. While we review the methodology to ensure the process for identifying leadership remains fair and fit for purpose, a Leaders’ Group will not be identified in 2023.
In continuing the review of the minimum requirements and Leaders’ Group in 2023, we will be able to base their future progress on these changes to determine how they can best serve the PRI’s mission and our signatories as part of our ongoing “PRI in a Changing World” consultation. Additional details are available on our Leaders’ Group page.
Support and further guidance to come
By publishing the 2023 Reporting Framework today, we are providing more than three months for signatories to digest and act upon any revised reporting requirements before the Reporting Tool is opened and the reporting cycle commences. The three-month reporting cycle opens in mid-May and will close in mid-August, with exact dates to be announced in due course. To further assist signatories with their 2023 reporting, we will be releasing additional guidance in the coming weeks.
A webinar is scheduled for 15 March 2023, which will provide an overview of the 2023 Reporting Framework. Signatories will also have the opportunity to ask questions. You can register for the webinar online.
To help signatories identify information/data points that they can potentially re-use from the 2021 Reporting Framework in their 2023 reporting, we will share a mapping resource in the coming weeks.
The mapping resource will also be available directly in the Reporting Tool when the live reporting cycle opens in mid-May 2023.
The assessment criteria, which is part of the methodology, are included in each indicator and in the modules launched. The 2023 assessment multipliers will be released ahead of the reporting cycle opening in mid-May. Updates to assessment multipliers will not impact signatories’ ability to prepare for the reporting cycle.
All updates will continue to be announced on R&A Updates, so please check back regularly.