There are several options for signatories to strengthen the confidence of their responses to the Reporting Framework.
Signatories can choose their next steps dependent on where they are in the below roadmap and also dependending on what the purpose of the assurance is, as highlighted in the below table.
|Purpose||Confidence-building measures expected||Range of indicators|
|Provide confidence to current and potential clients that signatory’s senior management has oversight of RI||Internal verification with sign-off by board or CEO||All indicators|
|Provide confidence to the PRI that signatory meets the minimum requirements that will come into force in 2018 as part of the PRI accountability work||Internal verification as per three lines of defence that is overseen by board/ CEO/C-level||Limite to those identified for minimum requirement purposes|
|Provide confidence to external data users/clients that PRI reports are credible||
Internal audit /external assurance of controls related to RI processes
Internal verification of data by compliance/equivalent team & CEO
Range of indicators based on combination of factors:
a) specific to assets that cover majority of AUM of signatory
b) size of signatory
c) indicators identified as most relevant ones within module by the PRI
The PRI’s next steps
- As part of the PRI’s wider accountability work, the accuracy and credibility of signatories’ reported information is a priority area. We will explore which CBMs will become a requirement in the future, based on what is practical, impactful and desirable, and sensitive to additional resources needed by signatories. The AWG could be tasked with looking at:
- CBMs in the context of PRI minimum requirements (RI generally or E/S/G specific policy covers over 50% of AUM, senior management oversight of RI).
- CBMs in the context of leadership identification by reviewing in more detail a subset of the indicators, such as those specific to active ownership or climate change.
- We will release a short guide specific to responsible investment on establishing strong internal controls as the first step of our suggested phased approach.
Introducing confidence-building measures to PRI signatories' reported data
- Currently reading
Next steps for signatories