After listening to investor suggestions on the 2021 iteration of the Reporting Framework, the PRI has addressed the three details raised by signatories.
- We’ve taken steps to simplify the 2023 reporting framework and reduce the reporting effort to ship a course of that’s higher suited to the wants of our signatories, whereas being led by the PRI’s mission.
- We’ve responded to signatory requests for stability: we don’t intend to make any vital revisions within the 2024 iteration and the Reporting Framework will stay steady for the following reporting cycle.
- We’re addressing issues over the growing reporting effort globally by a major new initiative, which we element under.
Equivalency Proof of Idea
Responding to the altering accountable funding reporting panorama, the PRI has established the Equivalency Proof of Idea (EPoC), a brand new piece of labor methods to deal with the duplication of reporting confronted by signatories throughout totally different reporting necessities.
The EPoC consists of a programme of labor that may decide, in collaboration with signatories, equal reporting necessities in targeted areas the place funding managers and asset homeowners have recognized a considerably elevated reporting effort. This work will in the end profit all signatories.
The primary part of this work has began with the institution of an asset proprietor working group to establish areas of equal reporting between the UK Stewardship Code and the PRI’s 2023 Reporting Framework, pinpointing alternatives for lowering the general reporting effort.
Beginning with asset homeowners is aligned with the Empowering Asset House owners precedence of our 10-year blueprint and strategy, and we’ve chosen the UK Stewardship Code as it’s the most developed. The primary conferences of this group convened in July 2023 with a view to concluding their work in 2024.
Participation on this working group is a major enterprise for the taking part signatories. In recognition of the hassle concerned, the Board determined, on an distinctive foundation, to supply lowered reporting to the ten signatories taking part and 7 of those accepted.
These signatories got the choice to finish Equivalency Programme – 2023 Reporting, comprising the Senior Management Assertion (SLS) and Organisational Overview (OO) modules solely, to fulfill the reporting commitment of Principle 6.
The main target of the equivalency work will step by step increase to embody different areas. Later this yr we will likely be contacting signatories for purposes to hitch a working group targeted on TCFD reporting in three jurisdictions: the UK, the European Union, and Hong Kong. We’ve chosen these markets because the jurisdictions with obligatory TCFD reporting that cowl the biggest variety of monetary establishments.
Future phases will likely be knowledgeable by the outcomes of those two preliminary working teams, with a view to lowering the reporting effort step by step for all PRI signatories. Additional information and bulletins associated to all points of Reporting and Evaluation, together with the work of the EPoC, will proceed to be posted on R&A Updates.