Principles of Responsible Investment (PRI) signatories will be delisted if they fail to adhere to the new reporting regime the global initiative has implemented.
The new PRI reporting framework improves transparency of participants' investment activity — and for the first time requires signatories to report publicly on progress towards implementing the PRI's six principles across a wider range of asset classes and investment processes.
PRI expects 800 of its signatories to adhere to the new framework by mid-2014, while those who fail to report will lose their PRI-status in the second half of 2014.
The framework would allow investment owners, asset managers and other stakeholders to make up their own minds about how committed a company was to the principles, according to PRI.
"Calls for the global investment community to be more transparent about how it is responding to the governance and sustainability challenges that define our era have grown louder since the financial crisis," said Wolfgang Engshuber, PRI Advisory Council chair.
PRI managing director Fiona Reynolds said robust reporting on key areas of responsible investment was important in gaining investors' trust back.
"This information will improve the dialogue between companies and investors about the real drivers of long-term performance, risk and return, and help asset owners more effectively evaluate and select managers, ensuring the investment chain functions effectively for clients and beneficiaries," she said.
Signatories have until 31 March 2014 to report under the new framework, which includes asset-specific modules for listed equities, fixed income, private equity, property, infrastructure and inclusive finance.
PRI's six principles include voting and engagement, manager selection, appointment and monitoring, and the integration of environmental, social and governance (ESG) factors into investment decision-making processes.