After listening to investor feedback on the 2021 version of the Reporting Framework, the PRI has addressed the three main points raised by signatories.
- Have taken steps to simplify the 2023 reporting framework and reduce reporting effort to offer a process that best suits the needs of our signatories, while also being led by the PRI mission.
- We have responded to signatories' requests for stability: we do not intend to make any significant revisions in the 2024 iteration and the reporting framework will remain stable during the next reporting cycle.
- We are addressing concerns about the growing global reporting effort through an important new initiative, which we detail below.
Equivalence proof of concept
In response to the changing responsible investment reporting landscape, the PRI has established the Equivalence Proof of Concept (EPoC), new work looking at ways to address the duplication of reporting faced by signatories across different reporting requirements.
The EPoC consists of a program of work that will determine, in collaboration with the signatories, equivalent reporting requirements in specific 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 began with the establishment of an asset owner working group to identify equivalent reporting areas between the UK Stewardship Code and the PRI Reporting Framework 2023, identifying opportunities to reduce the overall reporting effort.
Starting with the asset owners is aligned with the Empower asset owners priority of our 10-year plan and strategy, and we have chosen the UK Administration Code because it is the most developed. The first meetings of this group were convened in July 2023 with a view to concluding its work in 2024.
Participation in this working group is an important task for the participating signatories. In recognition of the effort made, the Council decided, on an exceptional basis, to offer reduced reports to the ten participating signatories and seven of them accepted.
These signatories were given the option to complete the Equivalency Program โ Reporting 2023, comprising only the Senior Leadership Statement (SLS) and Organizational Overview (OO) modules, to meet the Commitment to reporting on Principle 6.
The focus of equivalence work will gradually be expanded to cover 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 build on the results of these two initial working groups, with a view to gradually reducing the reporting effort for all PRI signatories. Further news and announcements relating to all aspects of reporting and evaluation, including the work of the EPoC, will continue to be published on R&A Updates.
