Responding to the changing responsible investment landscape is core to the development of the PRI’s Reporting Framework and Assessment products.  

After listening to investor feedback on the 2021 iteration of the Reporting Framework, the PRI has addressed the three main points raised by signatories.  

  1. We have taken steps to simplify the 2023 reporting framework and reduce the reporting effort to deliver a process that is better suited to the needs of our signatories, while being led by the PRI’s mission. 
  2. We have responded to signatory requests for stability: we do not intend to make any significant revisions in the 2024 iteration and the Reporting Framework will remain stable for the next reporting cycle.  
  3. We are addressing concerns over the increasing reporting effort globally through a significant new initiative, which we detail below. 

Equivalency Proof of Concept

Responding to the changing responsible investment reporting landscape, the PRI has established the Equivalency Proof of Concept (EPoC), a new piece of work looking at ways to address the duplication of reporting faced by signatories across different reporting requirements.

The EPoC consists of a programme of work that will determine, in collaboration with signatories, equivalent reporting requirements in focused areas where investment managers and asset owners have identified a significantly increased reporting effort. This work will ultimately benefit all signatories. 

The first phase of this work has started with the establishment of an asset owner working group to identify areas of equivalent reporting between the UK Stewardship Code and the PRI’s 2023 Reporting Framework, pinpointing opportunities for reducing the overall reporting effort. 

Starting with asset owners is aligned with the Empowering Asset Owners priority of our 10-year blueprint and strategy, and we have chosen the UK Stewardship Code as it is the most developed. The first meetings of this group convened in July 2023 with a view to concluding their work in 2024. 

Participation in this working group is a significant undertaking for the participating signatories. In recognition of the effort involved, the Board decided, on an exceptional basis, to offer reduced reporting to the ten signatories participating and seven of these accepted. 

These signatories were given the option to complete Equivalency Programme - 2023 Reporting, comprising the Senior Leadership Statement (SLS) and Organisational Overview (OO) modules only, to meet the reporting commitment of Principle 6. 

The focus of the equivalency work will gradually expand to encompass other areas. Later this year we will be contacting signatories for applications to join a working group focused on TCFD reporting in three jurisdictions: the United Kingdom, the European Union, and Hong Kong. We have chosen these markets as the jurisdictions with mandatory TCFD reporting that cover the largest number of financial institutions. 

Future phases will be informed by the outcomes of these two initial working groups, with a view to reducing the reporting effort gradually for all PRI signatories. Further news and announcements related to all aspects of Reporting and Assessment, including the work of the EPoC, will continue to be posted on R&A Updates.