Enhancing accountability

Objective 5

Enhance signatory accountability mechanisms

The PRI Reporting Framework ensures accountability of the PRI and its signatories

SIGNATORIES REPORTING

1,072

Number of signatories completing the Reporting Framework (up from 936 in 2015)


AO: 800
IM: 272
up from 691 in 2015
up from 245 in 2015

AO = Asset owners | IM = Investment managers

VOLUNTARY DISCLOSURE

Reporting Framework respondents choosing to disclose voluntary indicators:

AO: 22%
IM: 17%

AO = Asset owners | IM = Investment managers

TRANSPARENCY REPORT USE

86,671

Number of downloads of Transparency Reports from the PRI website in 2015/16

A NEW WAY TO ASSESS SIGNATORIES’ PROGRESS

The PRI’s Assessment Methodology was launched in late 2015 and used for the first time in the 2015/16 cycle.

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 and a pilot group trialling the new methodology, a high-level overview was piloted for two full reporting cycles (2013/14 and 2014/15). 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.

New for 2015/16 - Summary Assessment Reports
Last year, signatories told us that a concise summary of scores would be useful, and that in many cases they were creating these themselves when a more succinct version of the full report was needed, such as when presenting to their Board. Accordingly, we developed a Summary Assessment Report. It complements the full report, summarising module scores and year-on-year performance in a more easily shareable format.


BRAND NEW MODULE FOR THE WORLD’S LARGEST ASSET CLASS

For the first two reporting cycles since the Reporting Framework launched in October 2013, the fixed income module was in a pilot phase. Following extensive consultation with signatories, it was redeveloped for the 2015/16 cycle to better capture how responsible investment is practiced in this crucial asset class.

While the pilot fixed income module largely mirrored the listed equity module, the new module uses a more tailored set of indicators to capture responsible investment activity in fixed income more comprehensively.

Highlights of the new module:

  • The pilot fixed income module used the categories: “FI corporate”, “FI government”, “FI other” and “private debt”. The mix of fixed income securities found in the “other” category made meaningful analysis difficult, and the common distinction of corporate securities into financial on non-financial was not represented. The new module uses the categories “SSA – sovereign, supranational, sub-national and agency”, “corporate (financial)”, “corporate (non-financial)” and “securitised”.
  • Debt components of property, infrastructure have moved into the fixed income module.
  • The module is intended to be future-proofed, so it contains some advanced practices that the PRI does not expect to be commonplace yet (e.g. ESG integration in securitised debt).

Read more