3 Pension Protection Fund Responsible Investment Report 2021/22 Message from our Chair We are constantly adapting to a changing world. Continuing our commitment to transparency, we recently published our second Climate Change We have learned – and will continue to learn – a Report in line with guidance from the Task Force on Climate-related Financial Disclosures (TCFD). great deal on our journey, and have much to share, We see stewardship as essential to managing climate risks, and aim to encourage companies to deliver which may be of bene昀椀t to others. Our intention measurable outcomes and make use of market- leading tools to move towards a net zero pathway. is to share our insights transparently while also However, we don’t just focus on climate. The topics of human and labour rights, such as modern slavery learning from others in the industry. This report and Diversity & Inclusion (D&I), remain particularly important to us, along with Board structure and is a demonstration of that intention. remuneration. Over the past year, we continued to use our rights to exercise our voice, including escalation and voting against management in cases of unfruitful engagement. We will continue working in close collaboration with our asset managers and partners to implement our priorities in responsible investment. These include continuing to develop our stewardship practices in a way that we believe will reduce the thematic risks to which our investments are exposed – enabling us to help safeguard our members’ 昀椀nancial futures and a better future for all. Kate Jones Chair We have learned – and will continue to learn – a great deal on our journey, and have much to share, which may be of bene昀椀t to others.