Guide to reporting for service providers

1. - R E S P O N S I B L E I N V E S T M E N T -
PRI – Service Provider
Reporting

2. Drivers for Service Provider
Reporting
2

3. Demonstrating accountability
PRI’s strategy commits to transparency and accountability for all signatories. There are several drivers for Service
Provider Reporting:
3
Accountability
 Allows service providers to demonstrate
commitment to the Principles
 Responds to service providers’ desire to
communicate their RI/ESG activities
Transparency
 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

4. Benefits of reporting
4

5. Benefits of reporting I
Reach stakeholders and potential clients on a new platform
5
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
6
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
7

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
8
64
153
217 SPs invited to report in
Jan 2017 – 29% participated
Participating SPs Non-reporting SPs

9. 2018 mandatory service provider reporting
Successful consultation and supportive feedback process led to:
9
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
50
55
60
65
70
75
80
85
2017 2018
Total no. of indicators
40%
46%
11%
To a large extent To a moderate extent
To a small extent Not at all

10. 10
YEAR 0 YEAR 1 YEAR 2 YEAR 3
Grace period
(voluntary)
Sign up year 0 1st year report
(Jan –March cycle)
2nd year report
(Jan –March cycle)
YEAR 0
YEAR 0 YEAR 1 YEAR 2 YEAR 3
Sign up year 1
Grace period
(voluntary)
1st year report
(Jan – March cycle)
YEAR 0 YEAR 1
When signatories first sign up, they will have a one-year grace period whereby the first reporting cycle is voluntary
When is reporting mandatory

11. What to report on
11

12. Seven modules in total
Three modules reported by all Service Provider signatories
12
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)

13. Four specialised modules
To cover our largest Service Provider signatory categories
13
Relevant modules only:
Investment Consultancy (IC) Active Ownership services (AOS)
Reporting and Assurance (REP) Research and Data Provision (RDP)
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 (RI, ESG, sustainability,
financial, integrated), assurance,
certification
Research, assessment, ratings, indices,
brokerage

14. Other service provisions
You can still report if you do not identify with the four specialised modules
14
 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
ORGANISATIONAL OVERVIEW (OO)
STRATEGY & GOVERNANCE (SG)
CLOSING MODULE (CM)

15. The Framework Logic
Key functions
15

16. Organisational Overview Module
OO drives the rest of the Reporting Framework
16
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
Investment Consultancy (IC)
Active Ownership services (AOS)
Reporting and Assurance (REP)
Research and Data Provision (RDP)
If yes, the corresponding
modules for those service
offering(s) will unlock:
Strategy & Governance (SG)
Closing Module (CM)
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:

17. INDICATOR TYPES
17
Mandatory
77%
Mandatory to
report, Voluntary
to disclose
7%
Voluntary
16%
Narrative often open ended indicators
Unlock other indicators
MANDATORY
MANDATORY TO REPORT
VOLUNTARY TO DISCLOSE
VOLUNTARY
Mandatory indicators reflect core practices. These responses will be made
public and must be completed to submit the framework.
Some indicators are mandatory to complete but voluntary to disclose. These
indicators may determine which subsequent indicators are applicable or are
used for peering, but they may also contain commercially sensitive information.
Voluntary indicators reflect alternative or advanced practices. These
indicators are voluntary to report and disclose.

18. The Reporting Cycle
18

19. 19
Jan 2019 Jan 2020Mar 2019 July 2019
Data analysis
April - June
Reports are
released
Early July
Release of
next year’s
reporting
framework
November
Module
development
and changes to
the framework
July – November
PRI signatories
report on RI
activities
Jan - March
Reporting Timelines

20. Reporting time estimates
Rough estimates – each organisation has its unique set of circumstances and capacity
20
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

21. Reporting Outputs
21

22. 22
Transparency
Report
Private RI
Report
Submit and receive your outputs – available on the Data Portal
Public answers also
available on PRI’s website
Service
Providers
are not
assessed
Contains all responses to
public indicators
Contains responses
to public and private
indicators
Data Portal
analysis
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!
Outputs

23. Data Portal – Introduced in 2017
23
https://dataportal.unpri.org
Key objectives:
 To empower asset owners to engage with their managers by easily viewing and comparing
reporting data.
 To promote the sharing of best practice/ knowledge by giving signatories easy access to each
other’s reports.
 To help the PRI identify areas of further work based on most popular searches.
 To facilitate informed decision-making between signatories working together.
Functionality for Service Providers:
 Review YOUR public Transparency and private RI reports
 Review other signatory public Transparency information
 Approve/deny request from Asset Owners and Investment Managers to access your private reports
 Create list and group reports on some specific indicators
 Set your permission levels of what others can see of your private reports
 Access Snapshots reports

24. Resources and contact
24
 Dedicated page for service providers on: https://www.unpri.org/signatories/reporting-for-
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
Phone support
+44 (0) 2037143187
E-mail support
reporting@unpri.org

25. Thank you
25
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 7207947 and registered at 25 Camperdown Street, London E1 8DZ.