The UN-backed Principles for Responsible Investment Initiative (PRI) has delisted five financial institutions from its signatories for failing to participate in its annual Reporting and Assessment process.

Participation is mandatory for asset owner and investment manager signatories, although organisations new to the initiative are granted a grace year to allow them to observe and decide upon the best way to monitor and report their progress in implementing the Principles. The PRI Report on Progress, 2009 instead featured 284 signatories, a 98 per cent response rate from those required to take part this year.

DESBAN, Christopher Reynolds Foundation, Foresters Community Finance, Oasis Group Holdings and Trinity Holdings were the five delisted institutions, and three further companies voluntarily left the initiative: Mennonite Mutual Aid, New York State Teachers' Retirement System and Rapaki Property Group. However, 93 new signatories joined this year, bringing the total number up to 573, with 182 asset owners, 282 investment managers and 109 professional service partners.

"Overall, this is a good news story," commented James Gifford, executive director of the PRI. "Given the financial crisis, we are delighted that so few signatories were unable to participate in the reporting and assessment process. We understand that participation in this survey can be time consuming, and some funds have found it difficult to allocate those resources, particularly during these times. We would welcome them back at any time. It should be noted that the PRI does not have prescriptive requirements on how responsible investment should be implemented. Signatories are, however, required to participate in the annual Reporting and Assessment process as a minimum condition of remaining a signatory."

The PRI will consult its signatories on a transparency framework, which would become part of the compulsory reporting and assessment process from 2011, over the next year.

"But signatories should be sufficiently transparent to ensure their clients, customers, members and other stakeholders have a clear sense of their responsible investment processes, activities and capabilities. The aim will be to roll this transparency framework into the annual Reporting and Assessment process which signatories are already undertaking."

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