Completing the UNPRI report can be a daunting task, especially for new signatories. With a few weeks to go before the reports need to be submitted, there is a risk of getting caught up in the nitty-gritty details of the report and losing sight of the greater value of the reporting exercise. At least that’s our experience!
Having spent many years on the reporting side and on helping develop the reporting framework through the UNPRI Reporting & Assessment Steering Committee, I find there are a few high level principles worth keeping in mind as we prepare our own report for Contrast Capital and help other signatories prepare theirs.
- Stay focused on your own approach, don’t be too reporting-driven
Before investing time and effort in the report itself, be clear about what responsible investment means to your organisation, in the context of your own investment philosophy and investment process. This will help you identify which sections of the report you should really focus on and how you can best communicate why the RI approaches you have implemented are best suited to add value for your clients.
- Know your key messages, and repeat these often
The PRI reporting framework consists primarily of multiple choices options, so it can be tempting to overlook the free text boxes designed to provide additional (but unscored) information. Use free text sections more strategically to make the link to the key drivers of your overall RI strategy and the way it is being operationalized at the different stages of your investment process. The PRI assessment scorecards are already being used as a screening tool by investment consultants and asset owners. But, now that the full set of signatories’ data is easily accessible through the PRI Data Portal, the actual fund manager selection will increasingly be based on a more detailed review of their RI capabilities. So make sure the key messages articulating your competitive edge stand out throughout the report.
- Learn about industry expectations but prioritise what matters to you
The PRI reporting framework can seem like a long list of requirements that need to be fulfilled. However, it merely suggests different pathways to implementing RI. Use it to guide the development of your long-term RI strategy but focus on your needs first. For instance some of the key elements of an RI strategy will typically revolve around what level of information fund managers should work with (ESG ratings or raw ESG data) and what should be done in-house versus outsourced to specialized providers. There are no right answers to these questions, but there are some important considerations that need to be taken into account when making these decisions (e.g. the size of the investable universe, the type of research carried out by the investment teams, the factors that typically drive investment decisions!).
According to signatories’ estimates, it takes one full-time staff member about a week to prepare the information and complete their PRI report. To get more value out of the reporting process, we offer support to interested signatories. We help them translate their own RI approach into the PRI reporting format and sharpen their messages.
If you wish to discuss your report before the deadline on 3 April 2018, feel free to contact me.
