Between 1 April 2016 - 31 March 2017, total income grew to £8.1 million, up from £7.5 million on the previous year.
|Grants, donations, other||27||154||188|
|Events including PRI in Person net income||380||-92||293|
All signatories pay an annual fees, based on their total assets under management or, for service providers, number of employees. In 2016/17, income from new and existing signatories came to £7.81 million, up from £6.94 million in 2015/16.
Grants, donations and other income
The PRI received £154,000 in grants and donations, up from £27,000 in 2015/16. Projects funded include our work on fiduciary duty with UNEPFI; the Reporting and Assessment reporting tool; an investor palm oil trip to Indonesia; a joint initiative with Ceres on deforestation; and the PRI and MSCI Global guide to responsible investment regulation.
Between 1 April 2016 - 31 March 2017, total expenditure excluding PRI in Person and our 10-year events grew to £8.1 million.
|Bought-in services and consulting||769||838||1,196|
|Meetings and travel expenses||486||649||891|
|IT costs and telephone||315||386||545|
|Legal and professional services||113||139||182|
|Events, conferences and hospitality||87||139||54|
|Subscriptions, reports and printing||82||99||85|
|EXPENDITURE BY AREA||2016/17 actual
|Management and Operations||1,961||2,036|
|Global Networks and Outreach||1,765||2,168|
|Communications and Events||887||859|
|Policy and Research, Climate and Academic Network||694||1,061|
|Reporting and Assessment||537||582|
|NUMBER OF STAFF BY DEPARTMENT||June 2016||June 2017||Forecast|
|Signatory services (including Reporting and Assessment, Investment Practices, ESG Engagements)||29||35||38|
|Global Networks and Outreach||16||21||24|
|Operations, Finance, Partnerships and Academy||14||17||17|
|Communications and Events||9||9||9|
|Policy, Research and Academic Network||6||9||9|
Staff and network cost:
Our people are our most important asset. In 2016/17, we increased staff spending from £4.1 million in 2015/16 to £5.2million. Total staff numbers grew from 78 as of 30 June 2016 to 94 at 30 June 2017.
Staff costs are budgeted to increase to £5.99 million to reflect growing staff numbers - a projected 6 additional members of staff mainly in Global Networks and Outreach and signatory services teams.
External suppliers are contracted where there is a short-term or one-off requirement for support or expertise, and where internal resources or expertise are unavailable. Total consulting costs increased to £838,000, up from £769,000 in 2015/16. The PRI spent more than £10,000 with the following providers: The Survey Initiative (360 feedback and development), Strategic Global Advisory (comms, business planning, KPI development), Stewart Redqueen (report evaluating PRI impact over past decade), Rory Sullivan (Sustainable Financial System), Monfort (social media support), MRG Comms (Blueprint report), OPUSVL (comms support contract, infrastructure project and software application development), Opinium Research (Blueprint), Leidar SA (digital strategy), Jonathan Rodgers (corporate comms services), Act Fachubersetzzungen and Todays Translations (translations).
Bought-in services and consulting costs are budgeted to increase to £1,196,000 in 2017/18. This will support work including FSB Task Force investor outreach, development of a new course for the PRI Academy and translation services.
Meetings and travel:
As a global organisation, travel is critical to ensuring we can fully engage with our signatories around the world. Increases in travel expenditure largely reflect rising staff numbers.
Total costs increased slightly to £398,000, up from £341,000 in 2015/16. This is owing to paying full year rent for the US and Hong Kong offices. Rent is budgeted to increase to £456,000; this takes into account the fact that London business rates will increase and we will continue to pay rent for our offices in Hong Kong, the US and Europe.
IT and telephone:
IT and telephone costs increased from £315,000 in 2015/16 to £386,000 in 2016/17. This increase relates to enhancements to the PRI website; development of software for the Reporting and Assessment team; and costs related to new starters such as licences and equipment. IT and telephone costs are budgeted to increase to £545,000. This will cover IT (licences, software and new starters); website maintenance and development; maintanence of the Collaboration Platform; and developing the Data Portal.
Legal and professional services:
Costs this year for legal and professional services were £139,000. These costs include trademark registration, data protection, commercial advice, governance, audit and tax advice services.
2016/17: £8,570. After taking into account interest receivable, depreciation and tax, the PRI achieved a surplus of £8,570 for 2016/17.
Cash reserves of £1m minimum maintained throughout the year. Cash increased to £3.4m at the end of the year (2015/16: £2.9 million).
Asset owners headquartered in a country classified by the IMF as an emerging market or developing economy are entitled to apply for a fee discount. Please refer to the IMF’s World Economic Outlook 2016 (Statistical Appendix, p.209) for a full list of eligible countries.
The PRI will consider reciprocal fee waivers with organisations whose work is closely aligned with the Principles and the PRI’s strategic plan, where it makes business sense for both organisations to do so.
The PRI will bill service providers based on only their investment staff, where that service provider has distinct divisions that provide distinct services. If one of those divisions provides a service that is not relevant to investors (and therefore the Principles), this division will be excluded from the fee calculation.
In 2016 the PRI and UNEP FI’s Investment Commission introduced a pilot 10% discount for signatories of both initiatives.
|Account name||HQ Country||Signatory Category|
|Aquila Capital Green Assets GmbH||Germany||Investment Manager|
|Calvert Research and Management||United States||Investment Manager|
|ClearBridge Investments||United States||Investment Manager|
|Earth Capital Partners LLP||United Kingdom||Investment Manager|
|Global Sustain||Greece||Service Provider|
|Government Employees Pension Fund of South Africa||South Africa||Asset Owner|
|Hermes Investment Management||United Kingdom||Investment Manager|
|Inflection Point Capital Management U.K. Ltd.||United Kingdom||Service Provider|
|Interfaith Center on Corporate Responsibility||United States||Service Provider|
|International Corporate Governance Network (ICGN)||United Kingdom||Service Provider|
|Khazanah Nasional Berhad||Malaysia||Asset Owner|
|LA Retirement Fund||South Africa||Asset Owner|
|Northern Trust Asset Management||United States||Investment Manager|
|Pax World||United States||Investment Manager|
|Petros - Fundação Petrobras de Seguridade Social||Brazil||Asset Owner|
|PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil||Brazil||Asset Owner|
|Real Grandeza||Brazil||Asset Owner|
|Sanlam Limited||South Africa||Asset Owner|
|Sompo Japan Nipponkoa Insurance Inc.||Japan||Asset Owner|
|State Street Global Advisors (SSgA)||United States||Investment Manager|
|Tomorrow's Company||United Kingdom||Service Provider|
|Trillium Asset Management||United States||Investment Manager|
The directors present their report and the consolidated financial statements of PRI Association and its subsidiaries for the year ended 31 March 2017.
Partnering with the PRI allows organisations to showcase their commitment, associate themselves with expertise and leadership in responsible investment and gain exposure to peers and potential clients through branding, networking engagements and more.
Work with our partners generated £540,000 against a KPI target of £350,000
Organisations can partner with the PRI by:
The PRI thanks the following organisations for providing financial or in-kind support during the year, such as providing complementary access to research and data, and sponsoring or hosting PRI events and publications.
10-year anniversary conference partners
PRI in Person 2016
A Blueprint for the next decade: Global Workshop Series host partners
The PRI wishes to acknowledge the following organisations for their support: Carbon War Room, Ceres, Generation Foundation, GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH, Gordon and Betty Moore Foundation and Rockefeller Foundation.
The PRI also wishes to thank the following organisations for proving in-kind access to data: MSCI, RepRisk and Vigeo Eiris.