Stockholm (NordSIP) – On January 26th, the PRI published its 2023 Reporting Framework, providing sustainable investors with an update on best practices for reporting and on accountability, including regarding their minimum requirements and the Leaders’ Group.
The update includes an overview and structure guide to the Reporting Framework, the full Reporting Framework modules, and a guide to the logic that determines which questions are applicable to each signatory. It also includes supporting guidance such as the Reporting Framework glossary, high-level assessment methodology, and a diagram showing which modules are relevant to each signatory type (asset owner or investment manager).
The publication of the 2023 Reporting Framework at the end of January gives signatories more than three months to prepare their responses before the reporting cycle opens in mid-May.
According to the PRI, its signatories’ feedback from the 2021 pilot reporting year was crucial for the development of the 2023 Reporting Framework and focused on improving clarity, consistency and applicability, as well as reducing the reporting effort for signatories.
Questions and response options were revised to minimise ambiguity. Logic paths or assessment criteria were adjusted where practices were deemed not applicable to specific groups of signatories, so that signatories are not penalised for not being able to adopt certain practices. THe PRI restructured some sections for a clearer and better-aligned structure across the 2023 Reporting Framework and with other widely recognised frameworks, such as TCFD, TNFD, ISSB. To reduce reporting effort, the PRI also reduced the granularity of data requested and decreased the overall number of indicators
Following the 2021 reporting cycle, the review of the minimum requirements, first introduced in 2018 to provide a baseline performance requirement, was put on hold while PRI focussed on improving the quality of the 2021 reporting dataset, delivering the 2021 reporting outputs and developing the improved 2023 Reporting Framework.
Recognising the significant recent growth in the PRI’s signatory base, meaning that many signatories were not included in the 2020 consultation and have not yet participated in a reporting cycle, the decision has been taken to continue the review of the minimum requirements into 2023.
The existing minimum requirements will remain in place for the 2023 reporting cycle, and their review will continue in 2023.
Pausing the Leaders’ Group
The Leader’s Group will be paused in 2023. Due to the significant changes that the Reporting Framework has undergone in response to signatory feedback, including the removal of asset class reporting for asset owner signatories, the methodology used to identify PRI’s annual Leaders’ Group is no longer applicable.
A Leaders’ Group will not be identified in 2023 while the PRI reviews the methodology to ensure the process for identifying leadership remains fair and fit for purpose.
Signatories will be able to access the Reporting Tool once the reporting cycle opens in mid-May. Information on how the PRI has responded to signatory feedback when improving Reporting Tool functionalities, how to navigate the tool when reporting, and how to access it, will be shared ahead of the launch of the reporting cycle.
The three-month reporting cycle opens in mid-May and will close in mid-August, with exact dates to be announced in due course. To further assist signatories with their 2023 reporting, the PRI will be releasing additional guidance in the coming weeks.
A webinar is scheduled for 15 March 2023, which will provide an overview of the 2023 Reporting Framework. Signatories will also have the opportunity to ask questions.
To help signatories identify information/data points that they can potentially re-use from the 2021 Reporting Framework in their 2023 reporting, the PRI will share a mapping resource in the coming weeks. The mapping resource will also be available directly in the Reporting Tool when the live reporting cycle opens in mid-May 2023.