PRI – Service Provider Reporting 2017 Presenter: Senita Galijatovic, Officer – Reporting & Assessment team January, 2017

contents The PRI and the six Principles 3 Drivers for Service Provider Reporting 4 Consultation and feedback 6 Benefits of reporting 7 The SP Reporting Framework 10 Three steps to reporting 21 Online Reporting Tool 22 2017 Reporting cycle 23 Outputs 24 Next steps 25 Signatory support 27

THE PRI AND THE SIX PRINCIPLES The PRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. Its goals are to understand the investment implications of environmental, social and governance issues and to support signatories in integrating these issues into investment and ownership decisions. The six Principles were developed by investors and are supported by the UN. They have more than 1,500 signatories from over 50 countries representing over US$60 trillion of assets. 2 1500+ The six Principles for Responsible Investment: 60+

Drivers for Service Provider Reporting Click here to add footer

DRIVERS FOR SERVICE PROVIDER REPORTING PRI’s 2015-2018 Strategy commits to Transparency and Accountability for all signatories. In 2017 a voluntary Service Provider Reporting Framework will: Allow service providers to demonstrate commitment to the Principles Give investors improved access to service provider information Respond to Service Providers desire to communicate their RI activities Click here to add footer

CONSULTATION AND FEEDBACK Framework development Research and market analysis Canvassing staff and stakeholders on draft Public consultation ~30 interviews and in depth feedback February 2016: Initial research and market analysis began in April 2016: Drafting process began, with feedback given through to September 2016 Extensive support to the overall content of the framework. Most questions related to terminology and structure November 2016: The final draft was published Click here to add footer

BENEFITS OF REPORTING Click here to add footer

BENEFITS OF REPORTING I Showcasing your services Displaying your RI/ESG activities and competencies Contributing to: standardizing the reporting of Service Provider activities knowledge sharing among Service Providers enhancing best practice in the industry Click here to add footer

BENEFITS OF REPORTING II Summarizes your RI activities – valuable for engaging with internal staff, clients, shareholders and regulators Strengthens internal procedures and builds ESG capacity Especially for the pilot year – influence the content of the future reporting framework through your feedback Click here to add footer

THE SP REPORTING FRAMEWORK Click here to add footer

FOUR MAIN SP CATEGORIES PRI holds 15 categories for our ~230 Service Provider signatories The prioritised categories were developed into reporting modules for the pilot year: Advisory and Consultancy Asset consultants, execution and advisory, sustainability consulting Research and data provision Research, assessment, ratings, indices, brokerage Reporting and assurance Assurance, certification, reporting Stewardship Services Engagement and voting AC RDP REP SS Click here to add footer

MODULES AND LOGIC 1. Organisational Overview 2. Strategy and Governance Advisory and Consultancy Research and Data Provision OPTIONAL for 2017 Stewardship Services Reporting 3. Closing Module Click here to add footer

MODULE PATHWAY: ORGANISATIONAL OVERVIEW Organisational Overview module decides applicable modules Indicators OO 03 and OO 05 are key logic drivers Report on main/core business area, and other non-core business areas Key indicator Reporting Year Mandatory Voluntary 2017 Core / Non-core 2018 Core Non-core Key indicator Click here to add footer

MODULE PATHWAY: STRATEGY & GOVERNANCE Click here to add footer

MODULE PATHWAY: ADVISORY & CONSULTANCY Click here to add footer

MODULE PATHWAY: REPORTING Click here to add footer

MODULE PATHWAY: RESEARCH & DATA PROVISION Click here to add footer

MODULE PATHWAY: STEWARDSHIP SERVICES Click here to add footer

INDICATOR CHARACTERISTICS I PURPOSE DISCLOSURE LEVEL MANDATORY Mandatory indicators reflect core practices. These responses will be made public should you wish to disclose your Transparency Report during the 2017 pilot year, and must be completed to submit the framework. MANDATORY TO REPORT, VOLUNTARY TO DISCLOSE Some indicators are mandatory to complete, but voluntary to disclose. These indicators may contain commercially sensitive information. VOLUNTARY Voluntary indicators reflect alternative or advanced practices. These indicators are voluntary to report and disclose. EXAMPLE

INDICATOR CHARACTERISTICS II STATUS EXAMPLE Indicator status

THREE STEPS TO REPORTING

ONLINE REPORTING TOOL COLLECT AND ENTER INFORMATION ONLINE https://reporting.unpri.org

Receive Transparency Reports 2018 Mandatory reporting cycle starts Jan 3, 2017 March 31, 2017 June 2017 Sept 2017 Jan 2018 Live Reporting Period Online Tool Closed Provide feedback Receive Transparency Reports 2018 Mandatory reporting cycle starts Click here to add footer

OUTPUTS Transparency Report Private RI Report SUBMIT AND RECEIVE YOUR OUTPUTS Transparency Report Private RI Report Click here to add footer

NEXT STEPS Click here to add footer

FEEDBACK ON THE FRAMEWORK Influence the framework during the pilot year Use the inbuilt feedback functionality in the Online Tool to provide feedback as you report Contact the Helpdesk at any time via reporting@unpri.org The feedback provided by stakeholders will help us to implement changes to the modules and publish the updated, final versions in November 2017 Click here to add footer

Signatory support Phone support +44 (0) 2037143187 E-mail support reporting@unpri.org Click here to add footer

QUESTIONS

FAQs Is it mandatory to report on the Service Provider Reporting Framework? No, during this pilot year it is voluntary for all. Mandatory year starts 2018. Are Service Providers getting assessment scores? No, for this pilot year SPs will not be assessed. Substantial work needs to be done in identifying some of the risks and opportunities with assessing SPs. What outputs do Service Providers receive? Transparency reports and private RI-reports. What outputs will be publically available? During the 2017 pilot year, signatories will be able to choose whether to make their Transparency reports public or not. Private RI-reports stay private. Which modules am I required to complete if I choose to report this pilot year? Organisational Overview, Strategy and Governance, and Closing module. The remaining modules are optional.

THANK YOU