Pension Protection Fund Responsible Investment Report 2020/21 21 Engagement continued We have increased our Collaborating to investment in forestry address and mitigate and farmland by 20 per market-wide risks cent over the year. As part of our e昀昀orts to maximise the collective voice of the industry, we are members of key initiatives and engagements around a number of themes that are important to us. However, there are many initiatives, so we prioritise supporting workstreams in the markets where we’re active or rapidly developing new rules for better functioning markets to reduce systemic risks. For example, on climate change, we actively participate in the programmes run by the IIGCC and have contributed Engagement in forestry We make sure that we invest in, or to key projects focused on net zero frameworks and physical risks. Forestry can help mitigate CO only have exposure to, responsibly 2 managed forests and farmland. Taking action: We also work closely with policymakers emissions by storing carbon. This Over the year, we have and market stakeholders, such as makes sustainable forestry assets Year on year, the share of timberland in the PLSA, UK DMO and the DWP. one of a few viable nature-based increased our investment in solutions in the journey towards a the process of certi昀椀cation has slightly forestry by 20 per cent and increased, which is due to the fact that we continually review the net zero carbon world. Well-managed new assets have been acquired within forests can also increase biodiversity growing funds. Our managers commit proportion of our timberland and are more resilient to the e昀昀ects assets that are FSC and/or PEFC of climate change. to converting all new assets to certi昀椀ed certi昀椀ed. We receive regular forests as part of their post-acquisition, where possible, and it is something we reporting from our managers actively track. and are starting to consider the whole forestry commodities value chain. Certi昀椀cation of timberland (PPF’s share) 2019 proportion % 2020 proportion % 98.21% 93.09% Certi昀椀ed timberland in accordance with the FSC and/or PEFC Timberland in the process of certi昀椀cation in accordance with the 0.17% 5.83% FSC and/or PEFC Land that is sustainably managed in accordance with the FSC and/ 0.23% 0.01% or PEFC, but that cannot be certi昀椀ed Other 1.40% 0.27%