Evolving the PRI: how to remain mission-driven and signatory-centric in a changing world

Responsible investment is changing. So is the PRI.

Responsible investment’s rapid growth is reflected in PRI signatory numbers, which were less than 2,000 just five years ago and are well over 5,000 today. This increase in signatories has in turn driven the growth and evolution of the PRI. Today it is a significantly more global and diverse organisation than ever before.

The growth of responsible investment is a success story, and with it comes increased expectations of what we deliver to our signatories. More responsible investors means an ever-broader range of practice, greater visibility means higher scrutiny and increased regulatory action makes adapting to regional markets even more critical.

As a mission-driven, signatory-centric organisation, we are responding to this changing environment by evolving our operating model to better deliver value to our signatories – in line with our shared mission of achieving a sustainable financial system.

Our core offerings for signatories – from reporting and assessment, to guidance and initiatives, public policy engagement, events, the PRI Academy and beyond – will all continue, and will evolve to meet signatories’ changing needs.

“We are responding to this changing environment by evolving our operating model to better deliver value to signatories, in line with our shared mission of achieving a sustainable financial system.”

PRI in a changing world

Through the PRI in a Changing World consultation, we heard what signatories want from the PRI to support them in the responsible investment landscape as it stands today, and in the years ahead. Signatories want us to support their progression, to play a role in creating spaces for signatories to act, to influence system change and to engage effectively with markets at a regional level.

In order to deliver on these needs, we’ve recently restructured our organisation, creating six distinct but cross-functional teams. These are:

Responsible Investment Ecosystems

• There is a strong appetite for PRI-supported communities of practice within regions, and a belief that the PRI and its signatories can create the right enabling environment for responsible investment through local engagement with policy, regulation and standard setting. These regionally focused activities, delivered through a new focus on the development of local ecosystems, will allow the PRI to better support the local priorities of signatories. They will also provide a connection point for the groups and platforms that already play a convening role in each region, to support them in collaborating with each other.

Responsible Investment Solutions

• Guidance, tools and training are seen as one of the most important PRI offerings, with a majority of signatories wanting more of these services to monitor and progress their responsible investment practices. Through this new function we will deliver practical and tailored products and services to build market capability, drive progression and ensure accountability, informed by signatory needs and data insights.

Investor Initiatives and Collaboration

• Our longer tenured signatories often look to the PRI for support on engagement and influencing norms. So here we will combine and strengthen our opportunities for investors to influence collectively, building reliable, repeatable services to support signatories’ collaborative action. This team will also identify credible and relevant external initiatives, whose work we can amplify to our signatories.

Sustainable Systems

• This group will look forward, innovate and guide the organisation on what responsible investment looks like in the future. It will pave the way, shaping the policies and structures we need for responsible investment to thrive in global financial markets. It will also lead the signatory-guided design process for progression pathways – a framework for how signatories can demonstrate progress in a way that is more relevant to their particular responsible investment approach.

Operations

• A key enabler of the PRI strategy, this team will oversee the signatory experience. It will also provide the PRI with effective governance, legal and risk management, global business support functions and systems and coordinate strategy, planning and change management processes.

People and Culture

• This team will help to enable our people to be the best that they can be. Ensuring a good experience for all our employees, globally, will enable them to deliver the work that brings value to our signatories.

In short, these teams will work closely together to: support local communities of practice, provide guidance, tools and training, enable collaboration and help shape the financial system of the future to enable responsible investment to succeed.

“Nothing about our new approach involves a change of purpose. The PRI’s mission remains as relevant as ever.”

Continuing to deliver value

Nothing about our new approach involves a change of purpose. The PRI’s mission remains as relevant as ever, signatories are looking for leadership and our people are a truly talented and committed group. However, the world is changing, and with that, expectations of how the PRI delivers for signatories towards that purpose are changing too.

We hold ourselves to the same high standards that our signatories hold us to, and we believe that the PRI of the future can deliver even more value: supporting responsible investors, shaping sustainable markets and, ultimately, helping to deliver a more prosperous world for all.

 

 

The PRI blog aims to contribute to the debate around topical responsible investment issues. It is written by PRI staff members and occasionally guest contributors. Blog authors write in their individual capacity – posts do not necessarily represent a PRI view.