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There have been modifications to the Reporting Framework for the reason that 2021 Pilot and releasing the 2023 Reporting Framework in January gives signatories with greater than three months to arrange their responses earlier than the reporting cycle opens in mid-Might. This launch is a key step ahead within the growth of the PRI’s Reporting and Evaluation performance because the industry-leading reporting framework, globally.
The supplies launched immediately embrace an overview and structure guide to the Reporting Framework, the complete Reporting Framework modules, and a guide to the logic that determines which questions are relevant to every signatory. It additionally consists of supporting steerage such because the Reporting Framework glossary, high-level assessment methodology, and a diagram exhibiting which modules are related to every signatory kind (asset proprietor or funding supervisor).
Signatories will be capable of entry the Reporting Software as soon as the reporting cycle opens in mid-Might. Info on how the PRI has responded to signatory suggestions when bettering Reporting Software functionalities, learn how to navigate the instrument when reporting, and learn how to entry it, will probably be shared forward of the launch of the reporting cycle.
Incorporating signatory suggestions into the 2023 Reporting Framework
The event of the 2023 Reporting Framework has been signatory-centric. The core focus of the PRI was analysing signatory suggestions from the 2021 pilot reporting 12 months and figuring out key enhancements while being led by the PRI’s mission. Key suggestions focussed on bettering readability, consistency and applicability, in addition to lowering the reporting effort for signatories. Signatories will profit from the next enhancements:
Improved readability:
- We reviewed the terminology within the framework and up to date the Reporting Framework glossary; and
- We revised questions and response choices to minimise ambiguity.
Improved consistency and applicability:
- We performed systematic applicability checks to all indicators;
- We adjusted logic paths or evaluation standards the place practices had been deemed not relevant to particular teams of signatories, in order that signatories aren’t penalised for not having the ability to undertake sure practices;
- We restructured some sections for a clearer and higher aligned construction throughout the 2023 Reporting Framework and with different extensively recognised frameworks (e.g. TCFD, TNFD, ISSB); and
- We eliminated asset class module reporting for asset house owners (nonetheless, they’ll nonetheless report on the choice, appointment and monitoring of exterior managers, and their stewardship actions).
Lowered reporting effort:
- We decreased the granularity of information requested;
- We decreased the general variety of indicators; and
- We achieved efficiencies by implementing less complicated indicator constructions.
Accountability updates
Minimal necessities
The present minimal necessities will stay in place for the 2023 reporting cycle, and their overview will proceed in 2023.
The minimal necessities had been launched in 2018 to strengthen accountability amongst investor signatories by offering a baseline efficiency requirement, decided by way of reporting. To maintain tempo with a quickly altering panorama, PRI dedicated to reviewing the minimal necessities to make sure they continue to be fit-for-purpose, and commenced a proper overview course of in 2020. Following the 2021 reporting cycle, the overview of the minimal necessities was placed on maintain whereas PRI focussed on bettering the standard of the 2021 reporting dataset, delivering the 2021 reporting outputs and growing the improved 2023 Reporting Framework.
Recognising the numerous current development within the PRI’s signatory base, that means that many signatories weren’t included within the 2020 session and haven’t but participated in a reporting cycle, the choice has been taken to proceed the overview of the minimal necessities into 2023. It will enable the PRI to account for signatory suggestions and reporting knowledge that extra precisely displays our present signatory base and broader market developments.
Since their introduction, the prevailing minimal necessities have been profitable in driving change amongst the PRI’s investor signatory base. While we decide what form the continued overview will take, we’re assured that the prevailing minimal necessities ship applicable accountability throughout our signatory base and stay essential issues for traders. You may learn extra about this resolution and the present necessities on the Minimum Requirements web page.
Leaders’ Group
The Chief’s Group will probably be paused in 2023. Because of the important modifications that the Reporting Framework has undergone in response to signatory suggestions, together with the removing of asset class reporting for asset proprietor signatories, the methodology used to determine PRI’s annual Leaders’ Group is not relevant. Whereas we overview the methodology to make sure the method for figuring out management stays honest and match for objective, a Leaders’ Group is not going to be recognized in 2023.
In persevering with the overview of the minimal necessities and Leaders’ Group in 2023, we can base their future progress on these modifications to find out how they’ll greatest serve the PRI’s mission and our signatories as a part of our ongoing “PRI in a Altering World” session. Extra particulars can be found on our Leaders’ Group web page.
Assist and additional steerage to come back
By publishing the 2023 Reporting Framework immediately, we’re offering greater than three months for signatories to digest and act upon any revised reporting necessities earlier than the Reporting Software is opened and the reporting cycle commences. The three-month reporting cycle opens in mid-Might and can shut in mid-August, with actual dates to be introduced sooner or later. To additional help signatories with their 2023 reporting, we will probably be releasing further steerage within the coming weeks.
Webinar
A webinar is scheduled for 15 March 2023, which is able to present an summary of the 2023 Reporting Framework. Signatories will even have the chance to ask questions. You may register for the webinar on-line.
Mapping useful resource
To assist signatories determine data/knowledge factors that they’ll probably re-use from the 2021 Reporting Framework of their 2023 reporting, we’ll share a mapping useful resource within the coming weeks.
The mapping useful resource will even be out there immediately within the Reporting Software when the stay reporting cycle opens in mid-Might 2023.
Evaluation multipliers
The evaluation standards, which is a part of the methodology, are included in every indicator and within the modules launched. The 2023 evaluation multipliers will probably be launched forward of the reporting cycle opening in mid-Might. Updates to evaluation multipliers is not going to influence signatories’ means to arrange for the reporting cycle.
For any queries not answered by the out there steerage, please contact your Relationship Manager or e mail reporting@unpri.org.
All updates will proceed to be introduced on R&A Updates, so please test again often.
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