Financial report

Income

Between 1 April 2017 - 31 March 2018, total income grew to £10.4 million, up from £8.1 million on 2016/17.

	Actual 2016/17	Actual 2017/18	Budget 2018/19
	£000s	£000s	£000s
Membership fee - renewal	7,269	8,414	9,869
Membership fee - new	538	690	785
Grants, donations, other	154	462	473
PRI in Person income surplus	-92	597	307
PRI Academy	252	285	499
Total income	8,122	10,448	11,934

Signatory fees

All signatories pay annual fees, based on their total assets under management or, for service providers, number of employees. In 2017/18, income from new and existing signatories came to £9.1 million, up from £7.8 million in 2016/17.

Grants, donations and other income

The PRI received £462,000 in grants and donations. Projects funded include our work with the Rockefeller Foundation on the credit ratings project; UNEP FI on our fiduciary duty work; Ceres on a deforestation workstream; and the Finance Dialogue, who provided a grant for our work on climate change and environmental risk. 

Expenditure

Between 1 April 2017 - 31 March 2018, total expenditure excluding PRI in Person grew to £10.2 million.

	Actual 2016/17	Actual 2017/18	Budget 2018/19
	£000s	£000s	£000s
Staff costs (including networks, recruitment, training and development)	5,186	6,441	7,795
Bought-in services, consulting and research	838	1,171	1,343
Meetings and travel expenses	649	787	1,042
Premises costs	398	435	531
IT costs and telephone	386	593	831
Events, conferences and hospitality	139	220	302
Legal and professional services	139	124	77
Subscriptions, reports and printing	99	100	130
Academy commissions and marketing	54	69	84
Other expenditure (insurance, postage, office supplies, bank charges)	161	240	152
Total (PRI in Person expenditure not included)	8,051	10,181	12,287

Expenditure by area

	Actual 2016/17	Actual 2017/18	Budget 2018/19
	£000s	£000s	£000s
Management and operations	1,961	2,305	2,165
Global outreach and networks	1,765	2,210	2,767
Communications	887	886	1,165
Policy and research, climate, academic work	694	1,228	1,279
Investment practices	722	856	1,061
ESG engagements	549	642	775
Reporting and assessment	537	690	936
Premises costs	398	434	531
Grants, other	97	394	392
PRI Academy	297	377	431
Partnerships	143	157	235
Consultancy and research (separated in 2018/19)			550
Total	8,050	10,181	12,287

Number of staff by department

	June 2017	June 2018	Forecast March 2019
Signatory services (Reporting and assessment, Investment practices, ESG engagements)	35	37	41
Networks and global outreach	21	24	27
Operations, finance, partnerships, PRI Academy	17	17	18
Communications and events	9	10	10
Policy, research and academic network	9	13	13
Executive	3	3	3
Grants, donations, other income		3	3
Total	94	107	115

Staff and network costs

Our people are our most important asset. In 2017/18, we increased staff spending to £6.4 million, up from £5.2 million in 2016/17. Total staff numbers grew to 107 as of June 2018.

Staff costs are budgeted to increase to £7.8 million to reflect growing staff numbers - a projected eight additional members of staff.

Bought-in services, consulting and research

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.

The PRI incurred costs greater than £10,000 with: Carnstone (who helped create the PRI’s three-year strategy); the London School of Economics (with whom we worked on the just transition project); ERM (with whom we worked on private equity monitoring and reporting guides); Aidenvironement (assessment for collaborative engagement); TIIP (on income inequality), Freshfields (EU regulatory and public affairs service); Energy Transition Advisors (climate transition scoping study and the climate transition work programme); Collaborare Advisory Pty Ltd (on a guide for asset owners on the TCFD recommendations); 2* Investing Initiative (on the customisation of the Paris Agreement Capital Transition Assessment tool); Monfort (social media agency); Ostinato Associates (corporate communications services); PwC (translation of the 2018 Reporting Framework).

Meeting 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 travel costs increased to £787,000, up from £649,000 in 2016/17.

Premises costs

Premises costs increased to £435,000, up from £398,000 in 2016/17. This is owing to an increase in London business rates.

IT costs and telephone

IT costs increased to £593,000, up from £386,000 in 2016/17. This is because of a number of factors such as enhancements to the Data Portal, additional Salesforce licenses and devices for new joiners.

Legal and professional

Legal and professional costs decreased to £124,000, down from £139,000 in 2016/17.

Operating surplus

After taking into account interest receivable, depreciation and tax, the PRI achieved a surplus of £193,185 for 2017/18.

Cash reserves

Cash increased to £4.6m at the end of the year. This included receiving both sponsorship and delegate fees for PRI in Person San Francisco.

Fee discounts and waivers

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 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.

The PRI previously offered discounts for joint UNEP FI-PRI members and reciprocal fee arrangements. These were discontinued in 2017.

Account Name	HQ Country	Signatory Category
Aquila Capital Green Assets GmbH	Germany	Investment Manager
Brasilprev Seguros e Previdência	Brazil	Asset Owner
Ceres	United States
ClearBridge Investments	United States	Investment Manager
Earth Capital Partners LLP	United Kingdom	Investment Manager
Economus	Brazil	Asset Owner
FASERN	Brazil	Asset Owner
Funcef	Brazil	Asset Owner
FUNCESP	Brazil	Asset Owner
Global Sustain	United Kingdom	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
Infraprev	Brazil	Asset Owner
Interfaith Center on Corporate Responsibility (Delisted)	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
Lendlease	Australia	Investment Manager
Mirova	France	Investment Manager
Mitsubishi Corp. - UBS Realty Inc.	Japan	Investment Manager
MMI Group Limited	South Africa	Asset Owner
Normandin Beaudry	Canada	Service Provider
Northern Trust Asset Management	United States	Investment Manager
Pax World	United States	Investment Manager
PBI Actuarial Consultants Ltd.	Canada	Service Provider
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
State Street Global Advisors (SSGA)	United States	Investment Manager
ThomasLloyd Group	United Kingdom	Investment Manager
Tomorrow’s Company	United Kingdom	Service Provider
Tribe Impact Capital LLP	United Kingdom	Investment Manager
Trillium Asset Management	United States	Investment Manager
Valia	Brazil	Asset Owner
VicSuper	Australia	Asset Owner

Directors’ report and consolidated financial statements

The directors present their report and the consolidated financial statements of PRI Association and its subsidiaries for the year ended 31 March 2018.

 

Download

 

Partnerships

Organisations can partner with the PRI by:

• partnering 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.

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.

Our partners this year

Partnerships income

PRI in Person 2017

• Diamond: DWS (formerly Deutsche Asset Management)
• Gold: Amundi, Bloomberg, Deka
• Silver: Aberdeen Standard Investments, BNP Paribas, Clearbridge Investments, Martin Currie Investment Management, MFS Investments, MSCI, UBS
• Bronze: Bank of America Global Wealth and Investment Management, Beyond Ratings, BMO Global Asset Management, FTSE Group, HSBC Global Asset Management, Oekom-Research, Russell Investments, Sustainalytics, Vigeo Eiris, Wellington Management Company

PRI Academic Network Conference 2017

• Union Investments

Grants

The PRI wishes to acknowledge the following organisations for their support: 

Carbon War Room, Ceres, ClimateWorks Foundation, European Climate Foundation, Finance Dialogue, Generation Foundation, GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH, Gordon and Betty Moore Foundation and Rockefeller Foundation, We Mean Business and UNCTAD.

In-kind donations

The PRI also wishes to thank the following organisations for proving in-kind access to data: FTSE Russell, MSCI, RepRisk and Vigeo Eiris.

 

 

Home Previous