Building financial stability

Objective 14

Continue to build a financially sustainable organisation



During 2015/16, total income grew to £7.5 million (2014/15: £5.1 million). A summary of income is provided below.

2014/15 actual
2015/16 actual
2016/17 budgeted

Membership fee - renewal 4,275 6,469 7,314
Membership fee - new 281 466 483
Grants, donations, other 22 27 45
PRI in Person income surplus 399 380 -86
PRI Academy 73 173 210

Total 5,050 7,515 7,965

Signatory fees
All signatories pay an annual fee, based on their total assets under management (for asset owners and investment managers) or number of employees (for service providers). In 2015/16, income from new and existing signatories amounted to £6.94 million (2014/15: £4.56 million), accounting for more than 92% of the PRI’s income.

Grants, donations and other income
The PRI received £27,000 in contributions towards two projects: the Asset owner climate change strategy project and the PRI/UN Global Compact publication on investor-company engagement on anti-corruption.

PRI in Person
Event sponsorships and delegate fees from the PRI’s annual conference, held in London in September 2015, contributed £380,000 in net income (2014/15: £399,000).

PRI Academy
Unlike the not-for-profit PRI Association, the PRI Academy (held under the PRI Association subsidiary PRI Enterprises Ltd.) operates commercially. In 2015/16, its first full year in operation, it incurred a loss of £131,000 (2014/15: loss of £47,000 – the PRI acquired PRI Academy in September 2014, mid-way through 2014/15 financial year).


During 2015/16, total expenditure grew to £6.4 million (2014/15: £4.7 million). A summary of spending is provided in the table below, along with further information about the categories with expenditure above £100,000.

2014/15 actual
2015/16 actual
2016/17 budgeted

Staff (incl. networks/recruitment/training) 3,232 4,087 5,404
Bought-in services and consulting 404 769 923
Meetings and travel expenses 273 486 578
Rent 313 341 391
IT costs and telephone 190 315 349
Legal and professional services 125 113 87
Events, conferences and hospitality 69 87 146
Subscriptions, reports and printing 58 82 110
Marketing 16 32 48
Other expenditure 39 100 204

Total* (excl. PRI in Person) 4,719 6,413 8,241
EXPENDITURE BY AREA 2014/15 actual
2015/16 actual
2016/17 budgeted

Management and Operations 1,573 2,000 2,033
Global Outreach and Networks 829 1,191 1,856
Communications and Events 421 668 836
Policy, Research and Academic Network 261 509 641
Investment Practices 367 439 967
ESG Engagements 333 422 498
Reporting and Assessment 431 416 601
Rent 313 341 391
PRI Academy 108 293 291
Partnerships 83 133 126

Total* (excl. PRI in Person) 4,719 6,413 8,241

Staff (incl. networks/recruitment/training) costs increased to £4.1 million (2014/15: £3.2 million).
The PRI’s staff are its main asset and as a result make up by far the largest single item of expenditure at nearly 64% of total spending. Total staff numbers grew to 74 at 31 March 2016 (31 March 2015: 60), which in part is due to opening new subsidiaries, in the US (PRI US, Inc.) and Hong Kong (PRI Association (Hong Kong) Limited).

Staff costs are budgeted to increase further to £5.4 million in 2016/17, on the back of staff numbers rising to 88.3. The largest expansions are in the Networks team providing on-the-ground support to signatories in their region and in the Investment Practices team producing an expanded range of incorporation tools.

Bought-in services and consulting costs increased to £769,000 (2014/15: £404,000).
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. All major procurement projects and consultancy engagements are reviewed by the Director of Operations and Finance before the appointment is confirmed. The PRI is committed to ensuring a fair, transparent and accountable process for the purchasing of goods and services from external suppliers. A copy of the PRI’s procurement policy, which provides direction to staff in relation to tendering, contracting and procurement activity, is available on the PRI website.

The PRI incurred costs greater than £10,000 with these providers: Blueprint (video materials related to the PRI’s 10-year anniversary), Opinium (signatory surveys and consultations), Steward Redqueen (independent impact assessment), YouGov (ESG consumer survey), Carnstone Partners (organisational review), Right Lane Consulting (business planning and coaching), Rory Sullivan (public policy and systemic risks projects) and Rawnet (Reporting Framework data query tool design/specification).

Bought-in services and consulting costs are budgeted to increase more slowly in 2016/17 to £923,000. Significant projected fees include work relating to: creating the 10-year Blueprint for Responsible Investment, significantly increased number of translations, establishing freelance communications services in the key expansion markets of the US and Asia, a shared resource for the Foundation for the Global Compact, support for the systemic risk and research programmes and consultancy to support the US strategy.

Meetings and travel costs increased to £486,000 (2014/15: £273,000).
Travel is of primary importance to our Networks staff serving signatories on the ground in their respective regions. It is also critical to our outreach activities, particularly through the Managing Director and Chair who travel around the world to speak to signatories and the wider investment community about the purpose and activities of the PRI.

The rise results from an increase in staff (in particular Networks staff, including opening new offices in the US and Hong Kong), and the introduction of a travel allowance for Board members.

Meetings and travel costs are budgeted to increase more slowly to £578,000 in 2016/17. Increases relate to further rises in staff numbers, including Networks staff, further take-up of travel allowances by Board members and increased travel spend in the Executive team, such as for the global workshop series reaching out to signatories around the world on important topics such as potential revisions to the Principles.

Rent costs increased to £341,000 (2014/15: £313,000).
The new offices in New York and Hong Kong have added to rent costs since October 2015 and November 2015 respectively.

Rent costs are budgeted to increase further to £391,000 in 2016/17 in the first full year of running the three offices worldwide.

IT and telephone costs increased to £315,000 (2014/15: £190,000).
The increased costs primarily relate to development of the new, improved signatory portal (combining the resources on the PRI website and the Collaboration Platform (formerly Clearinghouse), and enhanced Reporting and Assessment software, as well as proportional rises in line with increased staff numbers.

IT and telephone costs are budget to increase more slowly to £349,000 in 2016/17.

Legal and professional services costs decreased to £113,000 (2014/15: £125,000).
These costs include trademark registration, governance, audit and tax advices services. The lower costs are primarily due to 2014/15 including legal fees relating to the acquisition of the PRI Academy.

Legal and professional services costs are budgeted to decrease further to £87,000 in 2016/17. This is primarily due to 2015/16 including legal fees relating to the establishment of PRI US, Inc. and PRI Association (Hong Kong) Limited.

Other costs increased to £100,000 (2014/15: £39,000).
They are budgeted to further increase to £204,000 in 2016/17.

Both of these rises primarily relate to the establishment of a £100,000 contingency reserve.


In 2015/16, the PRI incurred a surplus of £1,042,872 (2014/15: £280,000). The improved outcome largely results from: higher growth in number of new signatories, a lower rate of signatories delisting, rising markets increasing signatories’ AUM figures and therefore fees and an increased number of staff positions sitting vacant for periods of the year.

Cash increased to £2.9 million (2014/15: £1.8 million).


During 2015/16, two new entities were established to house the new US and Hong Kong operations: PRI US, Inc. and PRI Association (Hong Kong) Limited. These join PRI Association’s existing subsidiary PRI Enterprises Ltd., which was incorporated in November 2013 as a vehicle for commercial activity and currently houses the PRI Academy.


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 for up to two years. Please refer to the IMF’s World Economic Outlook 2014 (Statistical Appendix, p.158) 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 this makes business sense for both organisations to do so.

The PRI will consider billing service provider signatories based on the number of investment staff at the organisation, rather than the total number of staff, where this would result in a change of fee band.

Name Country Category

FASERN Brazil Asset owner
International Corporate Governance Network (ICGN) UK Service provider
Global Sustain Greece Service provider
Interfaith Center on Corporate Responsiblity USA Service provider
AlphaFixe Capital Inc. Canada Investment manager
FUNCESP Brazil Asset owner
PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil Brazil Asset owner
Real Grandeza Brazil Asset owner

Eight signatories from the United Kingdom, France, Brazil and South Africa that were granted fee discounts in 2015/16 did not give the PRI permission to share this information: six asset owners, one investment manager and one service provider. From 2016/17 onwards, the details of every signatory granted a discount will be published on the PRI’s website and in the Annual Report without exception.


On Thursday 23 June 2016, the UK population voted in a referendum to leave the European Union.

The situation was on our risk register and the PRI Board has been monitoring and will continue to assess any impact on our initiative, for example on: signatory growth, fee income, staff costs outside of London, and reserving policy. The fall of the pound will affect our operating costs in other countries, but the reserves we have deliberately built up for such eventualities will cover any changes to operating costs arising from further currency fluctuations in the medium-term.

Implications of the UK leaving the European Union will be a standing item for the PRI Board and the Board's Human Resource and Remuneration committee for the foreseeable future.


The directors present their report and the consolidated financial statements of PRI Association and its subsidiaries for the year ended 31 March 2016.





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, speaking engagements and more.

Organisations can partner with the PRI by:

  • sponsoring or exhibiting at PRI in Person and other events;
  • working with the PRI on research or a publication;
  • hosting a signatory event;
  • supporting the PRI Network in their region;
  • collaborating with the PRI Academy, Academic Network and Research Forum;

For more details, including all the latest Partnership opportunities, see the PRI website or contact:

Nikola Sobot
Head of Partnerships
+44 (0)20 3714 3154
+44 (0)7506 152810


The PRI is committed to ensuring that it is open and transparent about its fundraising and spending. The PRI is always honest about where its money comes from and the way in which it is spent.

As a member of the Fundraising Standards Board (FRSB) the PRI follows the Institute of Fundraising’s Code of Fundraising Practice and uses the FRSB’s Fundraising Promise:

  • We are committed to high standards
  • We are honest and open
  • We are clear
  • We are respectful
  • We are fair and reasonable
  • We are accountable


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, sponsoring/hosting/publishing PRI events and publications or advertising.


Of our partners this year, 69% were new sponsors, 17% were existing sponsors increasing their support and 14% were existing partners continuing their support:

69% new
17% increasing
14% continuing


The PRI attracted £338,000 of income through partnerships in 2015/16 (against a target of £250,000).

Gold partners:

  • Amundi
  • Bloomberg LP
  • BNP Paribas
  • ClearBridge Investments
  • Robeco

Silver partners:

  • AMP Capital
  • Calvert Investments
  • Capital Markets Promotion Council
  • CFA
  • Deutsche Bank
  • Hermes
  • MFS International
  • MSCI
  • Standard Life Investments
  • Thomson Reuters

Bronze partners:

  • FTSE Russell
  • Merrill Lynch
  • Sustainalytics
  • Vigeo Eiris


  • AXA Investment Managers
  • Boston Common AM
  • City Development Ltd
  • Inter Fund Management
  • McGraw Hill
  • Neuberger Berman
  • Northern Trust AM
  • PwC
  • Russell Investments
  • South Pole Group
  • SYZ Asset Management
  • Wellington

Media partners:

  • Global Proxy Watch
  • Responsible Investor
  • Strait Times
  • top1000funds