What is the PRI and PRI reporting?
This article outlines what the PRI is and what it is for. If you are interested in becoming a PRI signatory, or would like help with your PRI reporting or improving PRI score, please see our PRI services page.
The Principles for Responsible Investment, often known simply as the PRI, is an independent network set up to promote six principles of responsible investment, to properly define the investment implications of ESG factors, and have these factors incorporated into investment and ownership decisions.
Although the PRI is supported by the UN, it is not part of the UN and is considered an independent organisation.
The Principles
The six principles of the PRI are as follows:
We will incorporate ESG issues into investment analysis and decision-making process.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
We will seek appropriate disclosures on ESG issues by the entities in which we invest.
We will promote acceptance and implementation of the Principles within the investment industry.
We will work together to enhance our effectiveness in implementing the Principles.
We will each report on our activities and progress towards implementing the Principles.
Asset owners, investment managers and related service providers can publicly demonstrate their commitment to these principles by becoming signatories of the PRI and meeting the minimum requirements. There are now almost 5,500 signatories representing $128tn in AUM.
A PRI signatory will generally identify themselves using the official PRI signatory logo. This can be used on signatory websites and email correspondence for easy identification.
Danesmead ESG is a proud signatory of the PRI.
Why be a Signatory?
There are a number of benefits in being a PRI signatory, including:
Signalling / Marketing tool
The PRI provides an established approach to demonstrate to your investors that you meet a minimum set of responsible investing standards. The PRI also works closely with other platforms like the Task Force for Climate-related Financial Disclosures, Science Based Targets Initiative, and the Net Zero Asset Managers Initiative; becoming a signatory can help to demonstrate your commitment to working towards net zero and your broader responsible investment.
Industry standard
More investors are requesting/requiring PRI membership, for example European investors and UCITS platforms.
ESG reporting
Becoming a PRI signatory gives you the ability to share a standardised report of your responsible investment integration, based on the PRI’s Principles with your stakeholders. You also get access to peers’ reports via the PRI data portal, as well as assessment and reporting guidance.
Learning and Resources
Becoming a signatory enables you to access and participate in industry events, workshops, and advisory committees. PRI membership gives you access to training and support to help implement and grow responsible investing processes and incorporate ESG factors into investment decision-making.
Minimum Requirements
To become a signatory, a company must meet some minimum standards. The current minimum standards are:
Internal or external staff implementing responsible investment
Senior leadership oversight of responsible investment
Policy setting out overall approach to responsible investment covering at least 50% of AUM
PRI Reporting
Signatory organisations are obliged to report on their responsible investment processes and activities. This is to ensure accountability to the principles. In return signatories receive a publicly available Transparency Report, consisting of their responses to the reporting framework, and a private Assessment Report, scoring the responses according to the PRI’s criteria.
Reporting is ordinarily an annual process, running from Q2-Q3 each year. In both 2024 and 2025 signatories who have publicly reported previously have been able to opt out of producing a full PRI report, with signatories in 2025 obliged to complete a foundational reporting module, with the option to opt-in to full reporting. It’s also worth noting that when signatories initially sign up, they will have a one-year grace period in which the first reporting cycle is voluntary.
2025 Reporting Update
The PRI has not yet released the 2025 reporting framework; however, it is expected to be broadly the same as the 2024 framework, with the addition of the foundational module which will cover the Senior Leadership Statement and identify signatories’ other external reporting requirements (for example, TCFD, UK Stewardship Code and CDP).
Who must report in 2025?
Reporting is voluntary for:
Most signatories who have previously publicly reported (provided minimum requirements were met.)
Signatories who joined the PRI in 2024
Reporting is mandatory for:
Signatories who have not previously publicly reported, or those who have not met the minimum requirements.
Signatories who reported privately in 2024.
Progression Pathways
Progression Pathways are new a concept the PRI introduced in 2023. This initiative sets out three distinct “pathways” that signatories would elect to align with:
Pathway A: Incorporating ESG factors
Pathway B: Addressing the drivers of sustainability-related financial risks
Pathway C: Pursuing positive impact
The Pathways are seeking to develop a blueprint that signatories can follow to advance their responsible investment practices in a more tailored way. Each pathway will contain 8 pillars: policies & governance, investment analysis, setting sustainability targets, collaboration, engagement with investees, engagement with policy makers, engagement with clients & beneficiaries, and investment decision making. Under each of these pillars will be a variety of practices, divided up into levels which a signatory may advance through.
The PRI currently anticipates that the Pathways will be available to use in 2025, with foundational reporting available in 2026. More in depth progression reporting will be available in 2027/2028. The full details of Progression Pathways reporting continue to evolve.
This means PRI reporting will change… again. But hopefully for the better. The PRI does intend to maintain a level of mandatory reporting, which would be simplified, but still address and assess key elements of your approach to responsible investment and ensure signatories meet the minimum requirements.
Need Help with PRI?
Danesmead ESG provide a range of PRI services from becoming a signatory to PRI reporting and improving PRI score. Please get in touch to discuss how we can help you take the first step, maximise your rating, and get ready for the Progression Pathways.
Further Reading
