By David Atkin, CEO, Principles for Responsible Investment
In the almost two decades since the Principles for Responsible Investment launched, the landscape for responsible investors has changed dramatically.
The six Principles now have more than 5,000 signatories, representing more than half the world’s institutional assets under management. Investors have adopted a range of responsible investment (RI) practices to improve returns, reduce risks and achieve specific responsible investment objectives. Stewardship has led to widespread incorporation of material ESG issues into corporate strategies, risk management and reporting. Sustainability reporting for corporates and investors is now mandated or imminent in major economies around the world. But success has also brought new challenges, with investors in some markets seeing pushback against RI emerge.
I’m particularly delighted to share that our signatory AUM reached US$128.4 trillion, which demonstrates the continued relevance of responsible investment on a global scale, despite some of the headwinds we are facing.
In this increasingly complex and ever-evolving environment, we have been rethinking how to best support our signatories and deliver value. And I’m delighted to share the culmination of this work: our new strategy plan, which lays out how we will deliver for our signatories over the next three years.
What’s in our new strategy plan
Our new strategy plan responds to the priorities that signatories have shared with us, and demonstrates how we will support signatories’ responsible investment ambitions – whatever size or type of organisation they are, wherever they are in the world, and whatever their individual objectives.
The strategy plan describes how we will deliver for signatories across four focus areas:
- Driving signatory progression on responsible investment while streamlining mandatory PRI Reporting;
- Strengthening regional responsible investment ecosystems in both mature markets and emerging and developing economies;
- Amplifying signatory impact by supporting and leading collaborative initiatives; and
- Strengthening the enabling environment for responsible investment by influencing government and multilateral policy and financial market practices.
As part of this new roadmap, we will also monitor progress through a set of performance targets. This will ensure we deliver vital transparency and accountability as we proceed with our mission.
The future of reporting and progression
In line with this new strategy plan, PRI Reporting in 2025 is a first step towards streamlining mandatory reporting and transitioning towards Progression Pathways, which we are co-designing with signatories.
We recognise that our diverse range of signatories have varying needs, practices and market requirements. Our aim with PRI Reporting in 2025 is to create a stable baseline that can support the move towards streamlined mandatory Reporting and Progression Pathways, while responding to the changing reporting landscape that signatories are operating in. Read more about the changes we’ll be making.
What we’ve achieved over the past year
As we look ahead to what we will deliver under our new strategy plan, it’s also important that we reflect on all the progress we have already achieved. With this in mind, I’m pleased to share highlights from the past year’s work, via the publication of the PRI’s 2024 Annual Report.
Covering the period 1 April 2023 to 31 March 2024, the Report includes work programme updates, financial reports, and our board and governance statement. I’m particularly delighted to share that our signatory AUM reached US$128.4 trillion, which demonstrates the continued relevance of responsible investment on a global scale, despite some of the headwinds we are facing.
Have your say - come to our SGM
I look forward to discussing all of this with signatories in more detail during our annual Signatory General Meeting (SGM), taking place online on 10 September 2024. To accommodate our global signatory base, it will run twice, at 08:00 – 09:30 BST and 17:00 – 18:30 BST. If you are a signatory and haven’t done so already, I encourage you to register here to attend your preferred timeslot. You can also email questions in advance, as long as these are submitted by 3 September, and you will also be able to post questions live throughout the meeting.
Getting to interact with and hear directly from signatories is a personal highlight of my role at PRI, so I hope to see as many of you as possible take part next month. You can expect to hear:
- An update on the focus areas and activities of the PRI Board in 2023/24;
- A 2023/24 financial report, operational and long-term funding overview and updates on key work programmes;
- An update on plans for Board composition, as well as signatory voting, including on elections to the Board;
- Pre-submitted and live questions for the PRI and the Board.
A new chapter for responsible investment
I’d like to finish by thanking all of our signatories for continuing to trust, support and challenge us, in what is a new chapter for responsible investment. We are excited to start delivering on our exciting new strategy in the months and years ahead.
