Pension Protection Fund Responsible Investment Report 2020/21 18 Engagement continued Our engagement Engagement themes approach for externally for 2021–23 managed assets Harmful substance management Value chain rights Waste and circular economy initiatives Protection of basic rights Major pollution incidents Indigenous rights and traditional communities As detailed on page 11, we extensively review all existing and potential managers’ RI policies, ESG integration processes and stewardship practices Biodiversity and so we’re con昀椀dent they’re meeting Diversity and inclusion sustainable land use our standards. Terms of employment Sustainable food systems Health, safety and wellbeing We also instruct EOS – our stewardship Water stress Pollution, waste provider – to engage and vote across Human and and circular our segregated equity mandates. EOS economy labour rights carries out engagements on our 昀椀xed- income holdings and reviews the Natural activities of our managers of pooled resource Human capital funds as well. stewardship management t n S Equities Strategy and action e o Ethical culture and anti- m c n i Governance and lobbying o a bribery and corruption r l Disclosure vi Arti昀椀cial intelligence and Engagement in climate n data governance E Conduct, Responsible tax practices segregated equities change culture and Our 昀椀rst RI report and our stewardship ethics policy provide more detail on our Stewardship approach to engaging with issuers in our segregated equities. G k n o s o i i v r t During the year, EOS reviewed its a Composition and structure e , Audit and accounting r y c engagement themes for the 2021–23 Dynamics and culture n g i Sustainability reporting a e n corporate period, as shown in this graphic. EOS Board n t u Evaluation and succession c a Integrated reporting r t currently focuses on four priority effectiveness e S m reporting planning m o c sectors: human and labour rights, & human capital management, Board e昀昀ectiveness and climate change. Risk management Taking action: Executive remuneration We also constantly communicate Structure and metrics Serious operational risks with EOS, providing feedback Transparency and disclosure Shareholder Cyber security and input to its engagement protection Business Quantum of pay outcomes Product risks purpose and roadmaps when needed. and rights strategy Engagement themes for 2021–23 will drive progress in key areas, especially climate change and labour rights. Basic protection and rights Business purpose Minority protection and rights Capital allocation Investor engagement Long-term sustainable strategy Source: 2020 PPF Annual Voting & Engagement report, EOS at Federation Hermes