Pension Protection Fund Responsible Investment Report 2020/21 24 Engagement continued 3. Human and labour rights As a responsible asset owner Taking action: and employer, we focus on the importance of a fair and equitable FTSE Modern Slavery Driving disclosure at workplace. We recognise the responsibility of all companies to compliance ConocoPhillips respect human rights and provide decent work conditions and a living wage to employees. The COVID-19 pandemic further highlighted This year, we participated in a Following the Deepwater Horizon successful coalition to ensure UK oil spill disaster, EOS began the urgency of establishing the necessary protocols, which we FTSE 350 companies comply with engaging with crude oil producer continue to review across issuers. the UK Modern Slavery Act. The PRI ConocoPhillips in 2010. It met and coordinated the initiative, one of the corresponded with several directors, We have hit key milestones when largest to date, and brought together setting objectives around health and working with a broad set of 97 investors with assets of £7.8 trillion safety, disaster response risk stakeholders, for example, with to actively engage on the issue during management, oil sands risk and the AGM season. climate disclosure. the progress seen through the PRI’s Collaboration Platform where 62 companies either didn’t have Board The company has completed many we focused on Modern Slavery Act compliance within FTSE 350 signo昀昀 on their modern slavery annual of these objectives, convincing EOS companies over the year. statements or hadn’t published them. that it is an industry leader in health 1054 PPI and safety and disaster recovery, 2. Diversity and inclusion Following the coalition’s engagement, with excellent oil sand production most companies have responded practices. Case study Diversity and inclusion is an area positively, and 56 of them are now Driving leadership diversity at Nintendo compliant. We have also seen progress in its of growing importance to the climate reporting, as it now reports investment industry and a key We were also pleased to see the Home on three 2°C scenarios. It has also priority for us as an organisation. We’re continually developing our EOS and one of our pooled fund Nintendo also improved its O昀케ce’s update of statutory guidance set out a climate change action plan. internal initiatives and are active managers have been engaging with disclosures by producing its annual under the Modern Slavery Act 2015 EOS continues to encourage the members of the Diversity Project. Nintendo on Board diversity for report in English and included this year. company to improve its disclosure, several years, emphasising the need information on cross-holdings, governance, lobbying activity and to improve gender diversity and an important aspect of potential We are keen to see the scope of the factoring climate into executive pay. independence, improve disclosure interdependence at Japanese initiative progress beyond an Taking action: engagement focused solely on This year, we went further and increase discussion of diversity companies. We also asked for compliance, to driving improved quality on Board agendas. increased workforce 昀氀exibility than publishing a gender of reporting as well. pay gap report, and published in the form of maternity leave. our 昀椀rst diversity pay gap Although we continue to engage with Nintendo, we have seen Nintendo has also committed to 505 PPI report as a demonstration positive progress as a result of increasing its female workforce of our commitment. We also these engagements. The company from 20 per cent to 25 per cent set targets for ethnicity has recently appointed its 昀椀rst and strengthening its talent representation at all levels female Board member, established management programme to of the organisation. a nomination advisory committee establish a pipeline of senior and expanded the number of female executives. Along with reviewing diversity independent directors on the Board. e昀昀orts at our issuers, we now collect diversity data as part of selecting our managers. We feel it is important to see our managers re昀氀ecting this in their own organisations too.