Paris - 24 February 2014
TBLI Nordic: Workshop 12Alyssa Heath Senior Manager, Reporting and Assessment
THE SIX PRINCIPLES
AT A GLANCELaunched in April 2006 at the NYSE, the Principles for Responsible Investment has:
PRI R&A - Paris - 24 February 2014
Reporting at the PRI
▪ COMMITMENT ▪ Reporting on RI is one of the six Principles
that organisations commit to when they become a signatory to the PRI.
▪ ANNUAL REQUIREMENT ▪ Completing the Reporting Framework is
mandatory for all Asset Owners and Investment Managers signatories to the PRI.
▪ NEW PUBLIC DISCLOSURE ▪ From 2013, a subset of the reported
information will be made public.
PRI R&A - Paris - 24 February 2014
THE INVESTMENT CHAIN
Dedicated modules
Paris - 24 February 2014
FINDINGS
1. To what extent have you experienced that investors are interested in or use CSR information?
1. To what extent have you experienced that investors are interested in or use CSR information?
Implementation of RI by PRI signatories
0%
25%
50%
75%
100%
Listed Equity Incorporation Engagement (direct) Voting (direct)
RI implementationNo RI implementation
▪ Country specific legal requirements (including interpretation of fiduciary duty)
▪ Perception of materiality of ESG issues
▪ Long term investment approach
▪ Alignment with investment beliefs
▪ Pressure from beneficiaries/civil society/media
2. Why do some investors use CSR related information, whereas others do not?
▪ Quantifying the benefits and costs of specific ESG factors
▪ Identifying risks and opportunities that traditional investment research may not
▪ Identifying leaders and laggards
▪ Identifying the beneficiaries of longer-term structural changes in the economy
▪ Assessing company performance against its ESG objectives and targets
2. Why do some investors use CSR related information, whereas others do not?
2. Why do some investors use CSR related information, whereas others do not?
▪ Within PRI, most signatories report that they are using some form of CSR information
!▪ The reporting data suggests
investors use a combination of sources and different strategies for using the data.
!▪ Many investors are using 3rd party
Service Providers
Signatories using ESG data (Top 3)
0%
23%
45%
68%
90%
Company ratings/Analysis Sector data
0,630,71
0,87
3. How do you experience that investors obtain CSR information?
▪ PRI Reporting data shows there are 3 key ways Signatories collect CSR related information directly: ▪ Integrated annual reporting ▪ CSR Reports ▪ CDP
4. How can companies improve their CSR reporting and communication to make it more interesting and "usable" for investors?
Content ▪ Consistency ▪ Materiality ▪ Forward looking ▪ Clearly state timeframes for strategies/targets ▪ Benchmark against previously stated goals
!Practical
▪ Link content through an index, section headings, diagrams, cross-references, process maps, navigation symbols – make it easy to reach.
!Disclosure requests from third parties
▪ Identify those with the greatest reach and make sure the information provided is high quality.
Thank you
