05 Pension Protection Fund Climate Change Report 2021/22 Overview: Putting climate at the heart of our strategy This year we continued our integration e昀昀orts to improve our access to underlying climate data via our portfolio management systems. For listed markets, the emissions data available through our systems has increased from 30 per cent to 55 per cent of the Fund’s net asset value (NAV) over the year. A holistic approach to sustainability The impact the PPF has on the lives of its current and future members Data is still largely unavailable for private markets, Of course, currently, there is no standardised is clear, which is why we have further strengthened our commitment to however. Understanding the climate risk pro昀椀le process for doing this. So our attempt may be making a di昀昀erence in everything we do. of a diverse portfolio such as ours, with exposure a good example of how it might be done for a Over the coming year we will develop a holistic sustainability strategy, to a number of unlisted investments, therefore complex portfolio made up of public and private building on our established approach to responsible investment and remains challenging. To address this, we are investments and where diversi昀椀cation is essential the signi昀椀cant progress already achieved in our strategic response to actively supporting a broader environmental, to managing investment risk. climate change. As always, we are focused on balancing the 昀椀nancial social and governance (ESG) data outreach commitments to our members with the need for urgent, large-scale project, led by alternative investment technology Only by doing this groundwork can we 昀椀gure action to limit global warming. platform eFront, to engage with private markets out how we, as an investor, can get to Net managers to improve the availability of data at a Zero e昀케ciently and at pace – and without As a recent signatory to the FRC’s UK Stewardship Code 2020, our portfolio company and fund level. any greenwashing. commitment is clear. Driving action through thorough data-driven analysis and solutions, transparently managing risk, setting new standards As we detail in this report, we are also working in responsible investing (RI) and sharing our learnings to help others, are all with Dutch consultancy Ortec Finance to assess Barry Kenneth core to our beliefs and values. climate alignment across every asset class in Chief Investment O昀케cer our portfolio, with a particular emphasis on We will continue pushing ourselves to further the sustainability of our private markets. investments, as well as managing our own operational environmental impact, and that of our suppliers. The aim of this extensive and ambitious project is to measure forward-looking alignment with climate targets. In particular, we have looked Oliver Morley to assign a temperature score to every asset Chief Executive we invest in so we can see how the portfolio aligns with the Paris Agreement to limit global warming. In this way, we can establish a baseline and therefore better manage the climate risk exposure of our whole portfolio.