The United Nations Principles for Responsible Investment (UN PRI) reporting season is ongoing. The reporting window has been open for a month (started on June 14th) and will remain open until September 6th. As signatories well know, the annual reporting season is a crucial period during which they disclose their progress, achievements, and challenges in implementing responsible investment practices.
After a one year hiatus (given the technical difficulties that UN PRI faced when moving to their new reporting framework), this will be the comeback of the new signatories’ questionnaire. And not only that, but it will also be under a revised framework. So, for those of you that will be reporting for the first time this year, or even those that are just starting to consider becoming a signatory, what are 5 new things in this revised questionnaire?
- Improved Clarity, Consistency, and Applicability: After signatories’ feedback from the 2021 reporting season, this revised version was improved to reduce ambiguity, ensure applicability of all indicators, decrease the number of indicators and simplified indicator structures.
- Improved Alignment with Global Standards: The latest reporting framework aligns more closely with global sustainability reporting standards and frameworks, such as SASB or TCFD. This alignment promotes consistency and harmonization across different reporting initiatives, making it easier for signatories to integrate their UN PRI reporting with other sustainability reporting efforts.
- Process focused: The new framework places a strong focus on process-oriented reporting, shifting beyond just results. It encourages signatories to disclose detailed information on their responsible investment processes, providing investors with a deeper understanding of how ESG considerations are integrated into decision-making.
- Strengthened Engagement Disclosure: The updated framework emphasizes the importance of engagement activities. Signatories are expected to disclose their engagement strategies, objectives, and outcomes, showcasing their efforts to drive positive change through active ownership and dialogue with investee companies.
- Emphasis on Continuous Improvement: The new reporting framework emphasizes a commitment to continuous improvement and learning. Signatories are encouraged to share lessons learned, challenges faced, and improvements made, fostering a culture of knowledge exchange, and driving the advancement of responsible investment practices.
It is also worth remembering that recognizing the urgency of climate action, the UN PRI placed a strong emphasis on climate-related reporting in the 2021 questionnaire. This framework saw a surge in disclosures related to climate change strategies, carbon footprints, and alignment with the Paris Agreement goals. Investors are increasingly focusing on assessing companies’ climate risks, resilience, and transition plans, enabling more informed investment decisions.
As the UN PRI reporting season is 48 days away from the finish line, 1931 signatories have started their reports. If you haven’t, and would like help with it, please reach out. We will be more than happy to continue to drive sustainable investment practices and contribute to a more inclusive, equitable, and resilient future.
CEO, Miranda ESG
Contacts at Miranda Partners