Principles for Responsible Investment-FAQ

PRI Reporting Reminder: Reporting Portal Opens May 7 and Closes July 30, 2025

Why Report?
Completing the full PRI Reporting Framework provides investors and prospects with an Assessment Report, offering insight into a manager's responsible investment practices and enabling benchmarking against peer groups.

Value of the Annual PRI Assessment
The Assessment Report identifies strengths and weaknesses in your Responsible Investment (RI) policies and procedures. It also includes benchmarking by module, highlighting how your fund compares to peers in each area, and provides a clear view of where you are exceeding or lagging.

Importance of Year-over-Year (YOY) Reporting
Continuous improvement is core to responsible investment. Year-over-year enhancements demonstrate a proactive commitment to better RI practices and help address past deficiencies.

Key Factors That Impact PRI Scoring
ESGA has identified several common areas that materially influence PRI scoring outcomes:

• Transparency—Clarity and openness are central to PRI, and a lack of transparency will significantly impact your score. In today’s anti-ESG environment, managers must consider transparency strategies that don’t trigger anti-ESG sentiments.

• Full Portfolio Coverage – RI policies should ideally apply to 100% of AUM. Partial coverage will result in lower scores.

• Active Stewardship – Engagement through proxy voting, board interactions, or periodic calls reflects strong stewardship and boosts scores.

• Climate Risk Integration – PRI expects climate risks to be assessed and documented. Managers often consider these risks but fail to capture them in policy or reporting.

• Understanding the Questions – Misinterpretation is common. Always review the "Purpose of Indicator" and "Additional Reporting Guidance" to ensure your responses align with PRI’s intent—and peer norms.

Need Help?
Contact ESGA for support with PRI reporting, score improvement strategies, and documentation best practices.