Principles for Responsible Investment (PRI) Reporting for Private Equity

12th December 2024

The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment. Understanding and adhering to PRI reporting requirements is now essential for investment managers, asset owners and service providers aiming to align with global sustainability goals.

Private Equity firms operate at the intersection of capital allocation and business transformation, making them uniquely positioned to influence sustainable development. Reporting to the PRI offers Private Equity firms an opportunity to align operations with global ESG standards and achieve long-term competitive advantages.

With the PRI reporting cycle expected to open in May 2025, early preparation is key to accurately and efficiently report.  For those just starting out, it’s crucial to allocate enough time to align internally, establish a dedicated reporting team, and gather the necessary data. For seasoned reporters, focusing on identifying and addressing gaps will ensure a robust submission that highlights year-on-year improvements and showcases your commitment to continuous ESG progress. This piece will explore why PRI reporting is beneficial to Private Equity firms and how you can prepare ahead of the latest developments.

What is the PRI?

The Principles for Responsible Investment (PRI) is a well-established, United Nations-supported network of investors committed to sustainable investment practices. Founded in 2006, PRI helps signatories integrate ESG factors into their investment and ownership decisions. As of early 2024, there are 5,265 signatories, with investment managers making up approximately 76% of signatories.

What are the Principles?

Signatories commit to six voluntary principles:

  1. Incorporate ESG issues into investment analysis and decision-making.
  2. Be active owners and incorporate ESG issues into ownership policies and practices.
  3. Seek appropriate disclosure on ESG issues by investees.
  4. Promote acceptance and implementation of the Principles within the investment industry.
  5. Work together to enhance effectiveness in implementing the Principles.
  6. Report on activities and progress towards implementing the Principles.

These Principles guide investors toward practices that not only drive financial performance but also benefit the environment and society.

About the PRI Reporting Framework

The PRI Reporting Framework is designed to track signatories’ ESG integration progress, helping them benchmark against peers and demonstrate accountability. The content of the 2025 Reporting Framework will be closely aligned to that of 2024 and 2023, ensuring the stability of the reporting dataset for a third consecutive year.

Who must report?

New signatories are given a grace period during which reporting is voluntary and responses can be kept private. After this, signatories are subject to mandatory reporting against their relevant modules on an annual basis.

Signatories that are part of the Net Zero Asset Managers initiative can report on their commitments to the PRI or the CDP (Carbon Disclosure Project).

About the reporting modules

The framework includes several modules:

  1. Senior Leadership Statement: Mandatory for all signatories.
  2. Organisational Overview: Mandatory for all signatories.
  3. Policy, Governance and Strategy: Mandatory, but some indicators are voluntary.
  4. Manager Selection, Appointment and Monitoring: For signatories that outsource activities.
  5. Asset Class Modules: Only for investment management signatories in the relevant asset classes:
    • Listed Equity
    • Fixed Income
    • Private Equity
    • Infrastructure
    • Real Estate
    • Hedge Funds
  6. Sustainability Outcomes: Completely voluntary.
  7. Confidence Building Measures: Mandatory for all signatories.

Reporting timelines: Preparing for the annual reporting cycle

Whilst the PRI have not disclosed 2025 reporting timelines yet, they have indicated that the 2025 reporting cycle will likely reflect PRI 2024 dates, with the Reporting Framework and associated guidance released in the first quarter of the year and reporting outputs delivered to signatories in the fourth quarter.

The 2025 reporting process is likely to follow this schedule:

  • February: Release of updated Reporting Framework.
  • May-July: PRI signatories report on RI activities and upload to the reporting tool.
  • August-October: Data analysis, testing and generation of reports.
  • November: Transparency Reports and Assessment Reports released.

Key considerations for Private Equity

The top 5 things we recommend Private Equity firms to consider ahead of the next reporting cycle:

  1. Stay up to date with the latest PRI developments, including reporting modules tailored specifically to Private Equity.
  2. Pull together an internal reporting group to ensure you can collect enough key data aligned to PRI metrics.
  3. Ensure that portfolio companies are contacted early in the process to aid data collection efforts.
  4. Review existing ESG policies and practices as part of data collection.
  5. Early submission to the PRI reporting portal is recommended to avoid any accessibility difficulties towards the end of the reporting cycle.

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What’s new in PRI reporting?

The PRI’s latest developments aim to streamline reporting and enhance the signatory experience.

Progression Pathways

The new Progression Pathways initiative, set to launch in 2025, supports signatories in advancing their responsible investment practices. These pathways offer tailored guidance, resources, and benchmarks based on varying levels of ESG maturity and ambitions:

  1. Pathway A: Those seeking primarily to incorporate sustainability risks and opportunities.
  2. Pathway B: Those aiming to address drivers of sustainability related financial risks.
  3. Pathway C: Those seeking to have positive real-world impact alongside financial goals. 

PRI strategy 2024-27

The PRI has released a new strategy with two overarching objectives:

  1. To maximise the value they deliver to signatories in a rapidly evolving responsible investment environment.
  2. To support signatories to play a meaningful role in achieving a sustainable global financial system.

Within the strategy there are four key focus areas:

  1. Driving signatory progression on RI while streamlining PRI mandatory reporting.
    • PRI is working to reduce the reporting burden on signatories by integrating equivalent reporting frameworks and aligning reporting requirements with global standards.
  2. Strengthening regional ecosystems in both mature markets and emerging and developing economies.
    • PRI plans to work closely with signatories and regional organisations to create thriving responsible investment ecosystems. PRI is increasing its presence in regions such as Southeast Asia, Sub-Saharan Africa, Latin America, and India. The aim is to bridge the gap between developed and emerging markets.
  3. Amplifying signatory impact by supporting and leading collaborative initiatives.
    • This includes through PRI-led and supported stewardship, target setting and peer learning investor initiatives and through the PRI Collaboration Platform which provides a unique forum for investors to connect and collaborate to enhance their influence on ESG issues.
  4. Strengthening the enabling environment for RI by influencing government and multilateral policy and financial market practices.
    • PRI engages with governments, regulators, and multilateral organisations to align policies and regulatory frameworks with sustainability goals. This includes contributing to international discussions, such as those led by the UN, OECD, and ISSB

Senior Leadership Statement module requirements in 2025

For signatories that submitted a publicly available report in any previous year and met the minimum requirements, they will only be required to report on the Senior Leadership Statement module and disclose whether they are subject to any other reporting obligations. The rest of the reporting framework then becomes voluntary – more details on this will be shared by the PRI in February 2025.

How Anthesis can help

Our support empowers Private Equity firms to strengthen their ESG credentials and advance in responsible investment. By partnering with Anthesis, Private Equity PRI signatories can approach the reporting cycle with confidence, knowing they have a trusted advisor to guide them every step of the way. 

Navigating PRI reporting can be complex, but Anthesis provides end-to-end support through services tailored to your organisation’s needs:

  • PRI training: Online or in-person workshops explaining the PRI reporting process, modules, and data reporting best practices.
  • PRI gap analysis: Conduct a gap analysis against the PRI scoring guidance and provide improvement recommendations.
  • PRI submission preparation: Preparation and project management of the draft submission. Assistance with the final submission upload process.
  • PRI uplift program: Use recommendations from the gap analysis to develop a pre-reporting cycle improvement program.

Need support with your PRI reporting? Partner with Anthesis to strengthen your ESG credentials and navigate the reporting cycle with confidence. Contact us today to learn how we can guide you every step of the way toward responsible investment success.

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