Pension Protection Fund Responsible Investment Report 2020/21 4 Key achievements We were delighted to be awarded A+ scores in eight modules and A scores in the remaining two modules, for the 2020 Principles for Responsible Investment (PRI) Reporting Assessment. Purpose and governance ESG integration Engagement Voting Created a new stewardship policy under the 99 per cent of external assets now Achieved tangible engagement milestones, Committed to voting every share, where oversight of the Investment Committee and managed by fund managers that have a prioritised by our most exposed holdings or feasible, and worked in close collaboration Board 昀椀rm-wide ESG policy our key themes of climate change, human with our stewardship provider to improve Updated our SIP, adding ESG risks to the 92 per cent of our external assets now rights and diversity and inclusion processes risk register and further detail on our managed by PRI signatories, following Collaborated with key stakeholders in the Upheld a voting watchlist of key companies stewardship principles and monitoring extensive encouragement with our market, such as the Institutional Investors for which we pay additional attention to external managers managers Group on Climate Change (IIGCC), Climate voting recommendations Retendered for stewardship services, Achieved 100 per cent of our Liquids Action 100+ and the PRI Expanded reporting from all managers expanding the scope into more asset managers reporting against our mandated Notable progress made by our managers with voting rights on their voting activities, classes ESG and carbon reporting templates in emerging markets, sovereign debt and beyond just our equities managers Enhanced our regular reports to our Integrated diversity metrics in our annual infrastructure asset classes Established split-voting mechanisms for governing committees on ESG activities manager monitoring questionnaires Contributed to dialogue with the UK Debt two pooled fund mandates, allowing us to Mandated compulsory inclusion of our Finalised a new climate-aware equity Management O昀케ce (DMO), led by the override inconsistent voting instructions ESG integration, stewardship and reporting benchmark to meet our investment strategy Impact Investing Institute (III) on the UK Voted on 34 shareholder resolutions related clauses within our legal agreements with while reducing our exposure to climate risks Green+ Gilt proposal to climate issues during the year 1 Collaborated with PRI signatories on managers by at least 50 per cent encouraging FTSE companies to comply with disclosure on the UK Modern Slavery Act Delivering clearer governance and Delivering lowered ESG risk across the Pushing for clear progress from our Making sure our voice is heard on behalf oversight on behalf of our members portfolio on behalf of our members issuers on behalf of our members of our members For Purpose and governance For ESG integration For Engagement For Voting section see page 8. section see page 12. section see page 16. section see page 25. 1 When compared to FTSE All-World Index carbon emissions and reserves intensity metric