Dialed-in Reporting: Changes in PRI and the Shifting Disclosure Landscape

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What is Changing?  

PRI Reporting remains the primary mechanism by which signatories demonstrate how they implement the six Principles. It continues to offer:

• A standardized baseline assessment of foundational responsible investment practices.
• Transparency into how sustainability integration and stewardship are incorporated across an organization.
• Consistency for benchmarking and annual progress tracking.

Beginning in 2026, PRI will significantly simplify this process, establishing a new minimum foundation for responsible investment practices across all signatories:

• Split Mandatory and Voluntary reporting pathways have been removed. All signatories will be required to submit the same baseline PRI Reporting requirements.
• Mandatory reporting for new participants will be reduced from 250+ questions to approximately 40 core indicators.

Outcomes:

• The updated structure will allow signatories to report efficiently while still capturing essential elements of their Responsible Investment approach.
• The streamlined design lowers the reporting burden and provides clearer visibility into year-over-year progress.

The Current State: Sustainability Reporting is Evolving

Today, Firms are facing growing pressure from overlapping frameworks, evolving stakeholder expectations, and heightened scrutiny surrounding sustainability-related disclosures and commitments. Many organizations have become more selective in how they publicly communicate sustainability commitments, focusing on demonstrating implementation rather than making broad commitments to sustainability and responsible investing.

The market is moving away from expansive “report everything” disclosure exercises toward defensible, repeatable methods that provide insights on social and economic value creation and risk aversion. This trend can be seen not only in these changes to PRI but across multiple frameworks and reporting initiatives.

• The International Financial Reporting Standards (IFRS) Foundation and Global Reporting Initiative (GRI) expanded their collaboration to align with International Sustainability Standards Board (ISSB) sustainability reporting standards to increase interoperability of a global reporting system.
• Discussions surrounding the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) have increasingly focused on simplifying, classifying, and reducing reporting complexity.
• Reviews of the Sustainable Finance Disclosure Regulation (SFDR) have sought to improve usability, streamline disclosure requirements, and make sustainability information more meaningful for investors.
• The Net Zero Asset Managers (NZAM) initiative suspended participant reporting in 2024 and subsequently revised its approach, placing greater emphasis on flexibility and accommodation for signatories’ diverse circumstances.
  
  • Reporting to UN PRI now serves as one of the most practical ways to become a NZAM signatory.

Together, these developments suggest that sustainability frameworks are becoming less prescriptive in demonstrating progress while maintaining expectations for transparency, governance, and accountability. What that means for investment managers is a reduced reporting burden—allowing firms to spend less time on exhaustive data-collection exercises and more time on governance, strategy integration, and the management of identified sustainability risks.

RE Tech’s Outlook:

This evolution in PRI reflects a growing focus on how to communicate and identify sustainability performance in alignment with fiduciary duty. Both voluntary (PRI, NZAM) and regulatory (CSRD, SFDR) frameworks are responding to this focus by reducing reporting burden and providing greater clarity and flexibility in how participants report.

Having produced more than 100 sustainability reports, RE Tech Advisors has the expertise to help organizations navigate this rapidly evolving landscape and create a proactive, robust sustainability communications strategy. Whether through PRI or another reporting framework, RE Tech Advisors can guide your organization in determining the appropriate reporting strategy, integrating disclosures into core business strategy, and implementing processes that support financially material and decision-useful decision-making.

What is PRI

PRI is a structured six-principle framework that helps organizations demonstrate a commitment to responsible investment and continuous improvement. The framework is voluntary, and organizations align to PRI by exceeding the minimum requirements to become signatories and submitting information on their sustainability strategy on an annual basis.

The Six Principles of PRI

1. Incorporate sustainability issues into investment analysis and decision-making
2. Be active owners and incorporate sustainability issues into ownership policies and practices
3. Seek appropriate disclosure on sustainability issues by the entities in which they invest
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

Benefits of PRI

Participating in PRI includes benefits such as:

• Enhanced credibility with investors and stakeholders, meeting expectations regarding sustainability and responsible investment
• Access to industry best practices and peer benchmarking
• Improved transparency around sustainability integration and stewardship activities
• Opportunities to identify gaps and strengthen responsible investment practices over time

Timeline for PRI Submissions

The PRI reporting cycle typically follows an annual process:

• January – April: Reporting preparation
• May: Portal opens and reporting window begins
• July 29th: Reporting deadline, reporting window closes
• November – December: Assessment reports and reporting outputs are released to signatories

Who is Involved with PRI

PRI submissions typically involve extensive collaboration with internal teams to verify and approve the reported information.

Sustainability Teams

• Lead the PRI submission process
• Coordinate data collection and stakeholder outreach
• Draft responses and manage supporting documentation

Investment & Asset Management Teams

• Provide information on sustainability integration within investment decision-making
• Describe stewardship, engagement, due diligence, and asset-level implementation practices

Legal, Compliance & Risk Teams

• Validate governance, policies, and oversight structures
• Review disclosures for accuracy and regulatory alignment

Human Resources

• Provide workforce, diversity, training, compensation, and employee engagement information

Investor Relations & Client Reporting

• Align PRI disclosures with investor communications and sustainability reporting

Executive Leadership

• Provide strategic oversight and final approval of responses

External Consultants (if utilized)

• Interpret PRI requirements
• Facilitate stakeholder coordination
• Draft, review, and quality-check submissions

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By: Kate Barnett and Ryan Suen