1. PRI – Service Provider Reporting

2. Drivers for Service Provider Reporting

3. Demonstrating accountability
PRI’s strategy commits to transparency and accountability for all signatories. There are several drivers for Service Provider Reporting:
Allows service providers to demonstrate commitment to the Principles
Responds to service providers’ desire to communicate their RI/ESG activities
Accountability
Gives asset owners and investment managers more visibility on service provider activities
Enables understanding of what service level they can/should expect
Provides a high-level comparison
Transparency

4. Benefits of reporting

5. Benefits of reporting I
Reach stakeholders and potential clients on a new platform
Showcasing your services:
Displaying your RI/ESG edge
Improved visibility to asset owners and investment managers may provide additional value for service provider signatories
Contributing to:
Standardising the reporting of service provider activities
Knowledge-sharing among signatories
Enhancing best practice in the industry

6. Benefits of reporting II
Identify internal opportunities for change and improvement
Utilise the information generated from your PRI reports:
Summarising your RI/ESG activities
Use for engagement with internal staff, clients, shareholders and regulators
Gives a good overview of your organisation’s RI/ESG practices and capacity
Identify risks and areas for improvement
Strengthen internal procedures and build RI/ESG capacity
Learn more about other service providers’ business activities:
View and use data for analysis, compare and share with others.

7. Service Provider Reporting was piloted in 2017
Feedback and changes

8. 2017 feedback received
Signatories participated in an industry-first, voluntary, SP pilot reporting cycle in 2017
Showed signatory support for the overall framework approach
180 pieces of unique feedback received
Key themes:
Wording and terminology
User feedback on the Online Reporting Tool
Clarity of guidance on how to report
Identification of data which sometimes had not been tracked before

9. 2018 mandatory service provider reporting
Successful consultation and supportive feedback process led to:
Reduced reporting workload - 12% fewer indicators in 2018
Fewer overlaps, better structuring, relevancy of indicators enhanced, and better guidance.
Out of 60 signatories, 86% thought the framework captured their organisation’s implementation of the Principles

10. What to report on

11. Three modules reported by all Service Provider signatories
Seven modules in total
Three modules reported by all Service Provider signatories
ORGANISATIONAL OVERVIEW (OO)
STRATEGY & GOVERNANCE (SG)
BUSINESS SPECIFIC MODULES:
Investment Consultancy (IC)
Investment policy development, custodial services, strategic asset allocation, investment research and manager selection and monitoring.
Active Ownership Services (AOS)
Engagement and/or voting. Activities can be individual or collaborative.
Reporting and Assurance (REP)
Reporting (sustainable, ESG, RI, financial, integrated), assurance, certification.
Research and Data Provision (RDP)
Research, assessment, ratings, indices, brokerage.
CLOSING MODULE (CM)

12. Four specialised modules
To cover our largest Service Provider signatory categories
Relevant modules only:
Investment Consultancy (IC)
Active Ownership services (AOS)
Investment policy development, custodial services, strategic asset allocation, investment research and manager selection and monitoring.
Engagement and/or voting. Activities can be individual or collaborative.
Reporting and Assurance (REP)
Research and Data Provision (RDP)
Reporting (RI, ESG, sustainability, financial, integrated), assurance, certification
Research, assessment, ratings, indices, brokerage

13. Other service provisions
You can still report if you do not identify with the four specialised modules
ORGANISATIONAL OVERVIEW (OO)
STRATEGY & GOVERNANCE (SG)
CLOSING MODULE (CM)
Service providers that do not identify with the four business specific modules will still be able to complete OO, SG and CM
You can specify your particular business offer(s) by selecting ‘Other’ and providing further details on how you implement ESG/RI
Media/ IR communications / marketing, data management system providers, training/education, non-profit, industry association, or similar would choose the option ‘Other’ and only report on OO, SG and CM

14. The Framework Logic
Key functions

15. Organisational Overview Module
OO drives the rest of the Reporting Framework
ORGANISATIONAL OVERVIEW (OO)
OO 03
Specify your service offering(s). Select from the four main categories (IC, AOS, RDP, REP), and/or choose ‘Other’
OO 05
Specify whether you derive any ESG revenue from the service offering(s) reported in OO 03
If yes, the corresponding modules for those service offering(s) will unlock:
If none of your revenue is derived from ESG activities for the services reported in OO 03, you will only be required to complete SG and CM:
Investment Consultancy (IC)
Active Ownership services (AOS)
Strategy & Governance (SG)
Reporting and Assurance (REP)
Closing Module (CM)
Research and Data Provision (RDP)

16. The Reporting Cycle

17. Reporting Timelines Jan 2019 March 2019 July 2019 Jan 2020
Live Reporting Period
Online Tool Closed

18. Reporting time estimates
Rough estimates – each organisation has its unique set of circumstances and capacity
Data collection (80-85%)
Reporting (15-20%)
1st time reporting
Factors impacting the process:
Organisational readiness for ESG reporting
Size of organisation
Consistency of ESG approach across services
Data collection infrastructure, processes and liaison with various teams and staff
Responsibility for data collection: ESG specialists, compliance teams or similar
Data sharing approval and accuracy/quality checks
After information is collected:
Reporting on one module can take less than 1-2 hours
Completing the entire framework (seven modules) can take one-three days
Service providers will typically complete an average of four-six modules
2nd year and onwards
Prefilling of previous responses saves significant time
Scale of change in ESG incorporation approach– if small, data collection and reporting likely to take from a few hours to 1-3 days to complete

19. Reporting Outputs

20. Submit and receive your outputs
Transparency Report
Private RI Report
Data Portal analysis
Contains all responses to public indicators
Contains responses to public and private indicators
Analyse data, compare yourself to peers, read other signatories’ reports and view customisable snapshot reports created by PRI. New Service Provider snapshot out in 2018!

21. Resources and contact
Dedicated page for service providers on: signatories
Try the interactive diagram on reporting
Browse through supportive documentation on how to report, main definitions and recorded webinars
View the offline PDF modules
Online Reporting Tool - more guidance here
Log in to the Online Reporting Tool and start reporting today!
New user? Register here
Forgot your password? Go here first
support
Phone support
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22. Thank you
This presentation is being provided to you by PRI Association (“the PRI”) and its subsidiaries for information purposes only. The presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by the PRI. No reliance may be placed on its accuracy or completeness. Neither the presentation, nor any of its contents, may be reproduced, or used for any other purpose, without the prior written consent of the PRI. PRI Association is incorporated in England & Wales, registered number and registered at 25 Camperdown Street, London E1 8DZ.