8 www.ppf.co.uk Responsible Investment Report 2019/20 9 Leadership statements A ppr Chair’s foreword oa c h On behalf of the Board, I am We take all our responsibilities UK pensions sector, as one of the E x e pleased to reaffirm our commitment seriously and, despite our continued world’s largest investor groups c u t RI has always been to RI at the PPF. We have been success, we will never permit representing £1.6 trillion of assets, ion responsible stewards since the PPF ourselves to become complacent. should be a leader on this. The UK’s at the core of how was established 15 years ago, and Recognising these responsibilities, enhanced regulations provide a we do things and I signatories to the PRI since 2007. we look to emulate best practice significant opportunity to strengthen We pride ourselves on being a stable in governance and regulation. We how its pensions industry is taking am delighted that, organisation with strong principles fully support the guidance of the ESG factors into account and and values, and we are committed to TCFD, and our response to the reporting on them, particularly for with a lot of work continuing to protect our members recommendations is reflected in climate-related issues. Over the past done behind the for many years to come. the 2019/20 Annual Report and year, we have enjoyed working with Accounts. the DWP and The Pensions Regulator As a long-term investor, we look to be (TPR), among other participants, as a L scenes, we are now o vigilant and remain agile to all market We also believe in strong peer member of the Pensions Climate Risk o k publishing our dynamics and evolving global trends – collaboration across the industry, Industry Group. Its objective is to in g f including climate change – to identify both with other asset owners support UK schemes on this journey, o r inaugural RI report. risks and opportunities. In order to and our external managers. We and we hope that the new Pension w ar serve our members, and provide for welcomed the recent regulatory Schemes Bill will also be a driver for d our levy payers and other stakeholders, amendments by the Department continuing progress. we take a strong and informed stand for Work and Pensions (DWP) that on responsible investing. It is a priority, clarified the requirements for UK We have no doubt that the as set out in our Strategic Plan. With Occupational Pension Schemes. importance of being a responsible regular updates from the Investment These included incorporating asset owner will only grow. This report Team and its dedicated ESG specialists, financially material environmental, presents our progress so far and our the Board is well informed and able social and governance (ESG) commitment to continue evolving. to provide oversight and steer on considerations into their approach, the evolution of our RI framework and we acknowledge the long- Our RI journey so far and activities. term benefits they will deliver. The Arnold Wagner, OBE 2005–2020 April 6 – February 16 – Became signatory to the RI criteria formally Board adopted Statement of ESG research Became member First RI report We opened became signatory to the Carbon Disclosure Project embedded in Stewardship principles and Standard provider appointed of IIGCC and formal published; TCFD our doors UN-supported PRI and (CDP); RI ratings process manager selection of Diligence; RI Manager chaired the supporter of TCFD and aligned reporting used principles as base for developed process; became PRI’s Fixed Income workstream and Climate Action 100+ defining our core RI beliefs member of UKSIF led collaboration of UK pension funds to standardise expectations for ESG disclosures from listed equity managers 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 20 005 006 0 0 009 010 01 01 01 0 01 01 01 01 01 07 08 1 2 3 14 5 6 7 8 9 20 Voting & Engagement RI principles enhanced within RI clauses formally RI minimum standards policy RI enhanced framework overlay service acquired Statement of Investment included in investment approved; responded to DWP and new climate change Principles; responded to management agreements, consultation on changes policy approved; became the FRC’s consultation on a based on best practice to Investment Regulations, formal supporter of new UK Stewardship Code defined by International following the Law Commission Transition Pathway and issued statement of Corporate Governance report on Fiduciary Duty Initiative; joined Pensions compliance in Sep 2010 Network (ICGN) Climate Risk Industry Group