PRI reporting to be voluntary in 2024 if signatories reported this year

Decision made in light of changing regulatory disclosure requirements and feedback from signatories.

The PRI’s reporting and assessment will be voluntary in 2024 for any investor signatory that reported this year, and those in their grace period, the organisation has said. 

In January, the investor network relaunched its signatory reporting framework after a hiatus. Among the key changes were the introduction of indicators solely focused on human rights and greater alignment with the TCFD and other bodies. 

The release was a revision of a framework launched two years ago that was designed to streamline and improve the reporting process. The 2021 version also asked signatories to provide evidence of the outcomes of their portfolio-level sustainability efforts and detail of how signatories are measuring and managing these outcomes. 

However, signatories raised issues with the structure and questions of the framework, as well as on the experience of using the reporting tool. In response, PRI delayed the reporting cycle until 2023. 

Then in October, the PRI said that future accountability for its signatories “should involve significantly reduced mandatory reporting” relative to its current framework, as it launched plans for voluntary “progression pathways”. 

This latest move to make 2024 reporting voluntary for those who reported this year was announced in Martin Skancke’s departing chair letter to signatories on Thursday, seen by Responsible Investor.

Nathan Fabian, the network’s chief sustainable systems officer, told RI: “The regulatory landscape has changed across many jurisdictions since the PRI first launched its Reporting and Assessment framework. We see that some signatories are already completing reporting through frameworks that exist within their market in ways that at least partially overlap with PRI reporting.”

In light of the changing regulatory disclosure requirements in different markets and following feedback from signatories, the PRI decided to bring in a more flexible approach for 2024.

“This approach makes sense, especially for signatories that have not had substantial changes in their activities since 2023,” he said.

Fabian noted that although reporting and assessment in 2024 will be voluntary for all investor signatories that reported in 2023 or are in their grace period, for those investor signatories that have yet to report – which include those who joined in the last two years but did not report voluntarily in 2023 – reporting will be mandatory.

According to Fabian, this year nearly 1,000 signatories that were not yet required to report choose to do so regardless. “This clearly demonstrates that reporting remains a valued tool for many.”

Full details of this decision, including FAQs and how it will work in practice, will be shared in early January, according to the letter.

Alongside the change, Fabian said that the PRI will set up a parallel workstream on how to “embed accountability mechanisms” within the progression pathways.

“We encourage signatories to participate in these consultations to help shape what we believe will be an exciting future for the PRI, our signatories and responsible investment more widely,” he said.