A race to the top and a clear rulebook improve results

For signatory status to be meaningful, and for beneficiaries to see the benefits they are entitled to, we must ensure that signatories are living up to the commitments they make when signing up to the Principles. Ensuring that signatories are held accountable empowers us to recognise the leaders, and support those that are lagging behind.

Minimum requirements flowchart

Increasing Accountability

MINIMUM REQUIREMENTS

Following growing calls from across the signatory base for more stringent measures, 2017/18 was the first year since we introduced minimum requirements for our investor signatories. The new standards have been generally well received, both in principle from the signatory base as a whole, and in practice – as a useful mechanism through which to improve – from those that have needed support from the PRI to meet the standard required. There are currently 69 signatories are on the watchlist for potential delisting.

DRIVE MEANINGFUL DATA THROUGHOUT MARKETS

Reliable, timely information is needed for beneficiaries to understand and influence their investments, for asset owners to monitor their managers and for investment managers to accurately price assets and assess risk.

After more than 6 years in operation, Equity Flare is more mature in many areas – including as an employer. We are increasingly recognised as a desirable place to work, and are benefiting from being able to attract growing pools of candidates for roles at both the senior and junior level.

GETTING THE BEST PEOPLE

We have received good results from using the Applied recruitment tool, which brings a more data-driven, more collaborative and more objective approach to screening candidates.

• Setting candidates representative questions helps us to more practically asses people’s ability to do the job in question than by screening CVs
• Anonymising answers helps to avoid unconscious biases from erroneously diverting attention to/from particular candidates based on factors relating to identity/background, such as geography, race, gender or socioeconomics
• Isolating a candidates’ responses from each other helps to remove the halo/horn effect of strength/weakness in one area unduly affecting the impression of other areas.

ORGANISING OURSELVES TO DELIVER MAXIMUM SIGNATORY VALUE

As part of our 2018-21 strategy, we committed to conduct an organisational review once we had grown to more than 100 employees. The review conducted last year included:

• scoping how our geographical coverage will evolve as the signatory base grows;
• developing new business/project planning process and systems;
• mapping typical signatory journeys;
• evaluating the management structure and realigning decision-making

As such, 2018/19 has been an important year for laying new foundations for Equity Flare and we must now focus on embedding those changes and assessing whether they are delivering the value expected.

Collaborative

We achieve more together

We believe that active collaboration across our team and with our investors and strategic partners generates better outcomes.

Responsible

We strive to be a force for good

We are a driver of positive change, sustainability, and diversity, equity and inclusion both inside and outside of our organization.

Entrepreneurial

We innovate and build

We empower our people to take an “ownership approach”, operate as leaders and pursue smart risks because we believe this drives excellence.

Self Aware

We reflect and evolve

We believe in direct feedback, approach everything with a growth mindset, celebrate our wins, learn from our losses and strive for continuous improvement.

Trustworthy

We are dedicated stewards

We serve an important role in the lives of our stakeholders and we honor the trust that has been placed in us through our daily actions.

Equity Flare Advantage in ESG

At Equity Flare, research focus on ESG includes core criteria while additional material ESG issues are increasingly integrated These are inputs to help identify risks and opportunities.

Our Governance

Equity Flare will continue to be responsible for administering Assessments, providing the benchmarks, promoting widespread adoption of the Equity Flare Standards and supporting investor and participant members.