Why are signatories assessed?
The assessment aims to fulfil three main 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.
- 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.
Assessment provides signatories with a confidential report that can be used for internal learning and development as it provides:
- Accurate and reflective reporting, and
- Year-on-year progress and broad scoring bands, which allow signatories to re-evaluate their RI priorities.
Assessment began as the result of a consultation in 2013 with signatories and the Reporting & Assessment Advisory Committee (RAAC).
How are signatories assessed?
Signatories report on their responsible investment activities by responding to asset-specific modules in the Reporting Framework. Each module houses a variety of indicators that address specific topics of responsible investment. Signatories’ answers are then assessed and results are compiled into an Assessment Report.
The Assessment Report includes:
- indicator scores – summarising the individual scores achieved and comparing them to the median;
- section scores – grouping similar indicator scores together into categories (e.g. policy, assurance, governance) and comparing them to the median;
- module scores – aggregating all the indicator scores within a module to assign one of six performance bands (from E to A+).
Each module contains two types of assessed indicators:
Core assessed: all signatories will be assessed on these indicators and they will make up the majority (~75%) of their overall assessment score for each module. Completing these indicators and demonstrating advanced levels of implementation will enable a signatory to reach the third-highest performance band (B).
Additional assessed: signatories can generally complete these indicators if they wish (i.e. they will usually be ‘voluntary to report’) and they will provide an opportunity to demonstrate more advanced stages of implementation or reflect alternative practices. To achieve the highest possible bands (A and A+), a signatory will need to complete and score well on some, but not all, of these indicators. Only a subset of the best scoring additional indicators will be taken into account in the final performance band.
To determine the amount of additional assessed indicators that will be included in each module score, we follow a 75/25 guideline. The core assessed indicators should ideally not comprise of more than 75% of the total number of indicators assessed, while the remaining 25% should comprise of additional assessed indicators. In the example below, there are seven core assessed indicators and five additional assessed indicators. To ensure that the number of core assessed indicators are below 75%, the total number of indicators to be included in the score must be ten. That means three of the additional assessed indicators will be included in the score.
At a module level, the percentages of core and additional indicator scores obtained is then converted into a final performance band, as per the conversion table below.
The PRI does all these calculations for each assessed module and presents them in an easy to understand summary scorecard present at the beginning of the Assessment Report. An example of the Assessment Report can be found here.
Analysis of 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.
Evolution of Strategy and Governance performance bands 2014 - 17, all signatories
Strategy and Governance bands (2017) of signatories with >50% AUM in hedge funds
Strategy and Governance bands (2017) comparing first-time reporter asset owner signatories with other asset owner signatories
When will I receive my Assessment Report?
Your Assessment Report will be available in July each reporting year.
Where can I access my Assessment Report?
You can access your Assessment Report in the Data Portal (along with previous Assessment Reports if you are not a first-time reporter). The PRI will not send Assessment Reports to signatories.
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 and will never be shared.
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.
How can I access other signatories' Assessment Reports?
Signatories must request access to view other signatories’ private reports through the Data Portal. Signatories must approve requests before access is granted.
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.
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. However, these changes are minor.
Are all modules scored? Why are some indicators not scored?
The modules that ask about RI activities are assessed: the strategy and governance (SG) module and all asset class-specific modules. The organisational overview (OO) module asks about basic non-RI related information about the organisation, and the closing module (CM) looks for feedback and submission. These two modules are not assessed, except for the additional assessed assurance section in the closing module.
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?
Scoring is non-prescriptive and flexible. Each module contains multiple pathways (>25 pathways for some modules) and the different numbers of core and additional indicators per pathway can make it difficult to calculate your own score before submitting. However, the PRI is very committed to transparency and publishes the whole Reporting Framework, how each indicator is assessed and how the methodology works. These documents can be used as a guide for signatories.
Can I opt out from 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 on the Data Portal. 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. Whatever your reporting status (voluntary or mandatory) with the PRI, your organisation will automatically receive an Assessment Report.
Where can I find information on the Reporting Framework modules?
You can find FAQs about the Reporting Framework modules here.