AO36, IM34 (respondents with external investments and excludes n/a results). AO40 (respondents with external investments and excludes n/a results).
AO39 (Modified - asset owner respondents with external investments only, excludes n/a responses) 22% of asset owner signatories currently consider responsible investment issues in selection processes of investment managers to a large extent and 44% do so to a small extent; another 13% plan to consider these issues in 2007.
AO36 (Modified - asset owner respondents with external investments only, excludes n/a responses) 45% of asset owners formally assess the extent to which integration of ESG by external fund managers is actually taking place. In some cases, signatories will ask managers to regularly report on responsible investment integration or will undertake periodic reviews to assess this. In other cases, they rely on third-party assessments of their managers.
AO70, IM77 (all respondents) A quarter of asset owners claim to have developed comprehensive engagement capabilities to ‘a large extent’. More than 15% of asset owners plan to increase the extent to which they engage on social and environmental issues during 2007 and more than 10% will increase their level of engagement activity in relation to governance.
AO78 IM85 (Modified, excludes n/a responses) More than half of PRI signatories are likely to have asked investee companies for standardised ESG reporting, while 10% plan to start in in 2007.
AO83 IM90 (Modified, excludes n/a responses) AO88 IM95 (Modified, excludes n/a responses) More than half of asset owner signatories made some reference to PRI-related requirements in requests for proposals, with another 23% planning to add PRI-related requirements in 2007. 18% of asset owner signatories are planning to ask their service providers to sign the PRI in 2007.
AO108 IM115 (Modified - excludes n/a responses) About three quarters of signatories disclose, at least to a small extent, how responsible investment (RI) or environmental, social and governance (ESG) issues are integrated into investment processes
AO118 (Modified - excludes n/a responses)
Best practice and first steps are listed for each principle Summary – No matter the size of your organization or your stage of implementation, there are opportunities to improve your implementation of RI.
Examples are scattered through out the report
This is what they will look like and how to read the chart The responses for each principle have been divided into four quartiles. The position of the yellow diamond can tell you both which quartile your organisation is in and the relative position of your organisation within that quartile. If there is no yellow diamond, your organisation did not provide enough answers to meet the scoring threshold for that Principle (many questions allowed a 'not applicable' answer and if there were too many of those a score is not provided).
04 July 2007 PRI Reporting and Assessment Tool Jane Ambachtsheer Global Head of Responsible Investment Mercer Investment Consulting Nada Villermain-Lécolier Global Head of Responsible Investment Strategy Fonds de Réserve pour les Retraites, FRR
PRI Board decision: to provide signatories an assessment framework to report on their ability to implement PRI and a best practice guide
RFP procedure: 9 proposals were submitted in early October 2006. After analysis, and upon the assessment group recommendation, the Board has unanimously selected Mercer Investment Consulting to develop the project and create a flexible tool.
Universal Tool: Mercer team worked closely with PRI Secretariat, the PRI Assessment Working Group, and a range of experts from signatory and other organisations. The tool was ready and approved by the Board in January 2007.
Dematerialised tool: the online reporting interface was launched on PRI web site in February 2007, with final online submissions accepted until early May 2007.
Tailored according to each principle: the questionnaire is divided into six different parts corresponding to the six principles. Each principle is scored independently
Capture responsible activities in 2006 and progress through 2007. Can also be used as a reference manual for signatories to use on an ongoing basis, as well as a resource for new signatories
First ever global undertaking that captures in significant detail if and how investors are integrating environmental, social and governance (ESG) issues within investment decision making and ownership practices and the extend to which there are working together and communicating about their responsible strategy.
Signatories to the PRI are taking their commitments to implementing the six Principles seriously
Signatories have performed best in implementing Principles 1 (ESG integration) and 2 (active ownership). Implementation of the other Principles is not as progressed
The top performers in implementing Principles 4 through 6 tend to have the widest range of scores, which may indicate that a wide variety of approaches are being employed by the leading signatories in these areas
Investment managers perform better than asset owners overall, and signatories from North America and Europe have the strongest performance by region
Do you have a formal investment policy statement that makes specific reference to the integration of responsible investment (RI)/environmental, social and governance (ESG) issues within investment decision making and ownership practices?
PRI signatories regard proxy voting as an important engagement tool
All PRI investment managers are involved in voting to some extent, and 93% have a voting policy. The high level of attention paid to voting by investment managers is also reflected in the fact that 85% conduct proxy voting on behalf of their clients and 78% can execute client-specific voting programmes.
To what extent did you employ proxy voting in your 2006 engagement strategy?
Results – Principle 2 Engagement on ESG issues
To what extent have you developed a comprehensive RI/ESG engagement capability?
Signatories continue to face practical and cultural barriers to further PRI implementation
According to many signatories, the tools and the conditions required to make use of the Principles have yet to fully emerge
The major barriers identified by signatories revolve around resource considerations, insufficient research inputs and unsupportive operating environments
There is a deficiency in mainstream, quantitative and historical performance attribution data - Improved metrics and analytical frameworks are required to sufficiently demonstrate performance that results from integrating ESG in investment processes