Foreword

In 2024, over 1.7 billion people voted in national elections, underlining the importance of political resilience in responsible investment. The year saw advancing climate impacts and calls for action on the UN Sustainable Development Goals (SDGs). The PRI’s three-year strategy aims to support signatories by convening collaboration, advocating for enabling policy, and introducing a flexible framework for responsible investment (RI). PRI reporting is transitioning to a streamlined model, with 2025 serving as a stable baseline year.

Key findings

Senior leaders primarily view RI through the lens of long-term value creation and risk management. Climate change is the top material issue, cited by signatories with a combined AUM of US$82.7 trillion. Sixty-five percent of signatories report taking action on sustainability outcomes, driven mostly by financial materiality.

Asset owners show stronger commitment than investment managers. For example, 58% use climate scenario analysis versus 29% of managers. Forty-eight percent of asset owners prefer collaborative stewardship, compared to 19% of managers.

Private markets investors are increasing RI integration through limited partnership agreements and stewardship. More investors are managing climate risk, with 83% identifying related risks and 69% having a formal climate policy.

Human rights guidelines are now in place for 64% of signatories. However, only 11% enable access to remedy.

About this report

The analysis is based on data from 3,048 signatories who completed the PRI Reporting Framework in 2024. The purpose is to help investors benchmark practices and identify steps to improve RI integration. ‘Action staircase’ charts illustrate implementation depth.

PRI signatory base overview

Signatories represent US$89.3 trillion in AUM and span 88 countries, with 12% based in emerging markets. Listed equity has declined to 32% of asset mix, while private equity and real assets increased. Most listed equity assets are actively managed (54%).

Senior leadership commitments and priorities

Leaders cite climate change, due diligence, and sustainable development as central motivations. The SDGs and Paris Agreement influence RI strategies. Emerging themes include biodiversity and, to a lesser extent, artificial intelligence.

Investment practices

Ninety-nine percent of signatories have RI policies; 86% are public. Human rights and climate guidelines have increased year-on-year. RI oversight is assigned at board or senior level in 93% of organisations.

More than 90% of investment managers formally identify material ESG factors across asset classes. Scenario analysis remains underused but is more common in real estate due diligence. Seventy-seven percent of signatories identify sustainability outcomes, with 44% citing financial relevance.

Stewardship with investees and assets

Eighty-one percent conduct stewardship in fixed income. In listed equity, 60% have proxy voting policies, but only 20% disclose rationales for voting against ESG proposals. Real assets stewardship is widespread, with benchmarks and minimum standards common. In private equity, ESG is increasingly integrated into due diligence and early-stage planning.

Participation in collaborative initiatives

Forty-eight percent of asset owners engage collaboratively. This is more common in emerging markets.

Policy maker engagement

Sixty-three percent of signatories engage with policy makers, primarily via consultations. Larger AUM signatories and asset owners are more active.

External manager selection, appointment and monitoring

Most asset owners evaluate external managers on RI. Ninety-eight percent assess ESG integration in selection; fewer monitor ongoing stewardship. Use of RI clauses in contracts has slightly declined to 67%.

Disclosure

Fifty-six percent report climate commitments; 39% report human rights. Eighteen percent do not regularly report on RI topics.

Issues in focus – climate change

Eighty-three percent identify climate risks. Thirty-five percent of asset owners look beyond typical time horizons. Formal exclusions and climate metrics (e.g., emissions, physical risk) are used, though inconsistently.

Human rights and social issues

Policies exist for 64% of signatories, but only 32% conduct due diligence. Use of the UN Guiding Principles remains limited.

Areas for development and next steps

Improvement areas include public RI policies, stewardship strategies, disclosure of voting decisions, and integration of RI clauses in contracts. Greater implementation of climate risk tools and UNGPs is also recommended.