8 Pension Protection Fund Responsible Investment Report 2021/22 Our purpose and governance What we stand for How our purpose and values feed Our purpose is to deliver the best 昀椀nancial results for into e昀昀ective stewardship Our approach to Responsible Investment (RI) our members. We believe this goes hand in hand with and stewardship responsible investing for two main reasons: Our organisation’s values At the PPF, we lead by example and demonstrate our values Our RI Framework puts our core beliefs into practice: from the top down. We believe that establishing the right 1. 2. values, culture and accountability is key to delivering the best outcomes for our stakeholders. RI Framework Good corporate Exercising our Our ‘ICARE’ values de昀椀ne how we conduct business across governance and ownership rights is not the organisation. They are integrated into every employee’s Strategic management of only a key part of being performance development review and annual goals, as well Governance & direction & Risk Metrics & ESG risks is a strong a responsible owner but as at a directorate and overall organisation level. accountability policy management transparency indicator of how an also helps safeguard organisation manages sustainable returns in risk as a whole. the long term. Taking action Priorities Culture is considered to be a key enterprise risk so our Executive Committee is now actively tracking a KPI on culture on a regular basis that re昀氀ects the Climate change Stewardship Reporting Our RI Framework puts these core beliefs into practice. FCA’s culture measurements of purpose, governance, leadership and people policies. An indicator measuring Read about our responsible investment (RI) strategy and our performance for responsible investment and our RI Framework to learn more about our beliefs, aims active stewardship is a key component of the purpose Climate & sustainability Engaging with fund Internal ESG Dashboards and approach to being a responsible investor. element. This aims to ensure that our beliefs and policies & strategies managers culture are continually enabling e昀昀ective stewardship. Climate stewardship Engaging with Investment Committee & issuers Board reporting Climate risk assessments & Voting of shares External RI reporting sustainability reporting Good corporate governance and management of ESG risks Climate Collaborative opportunities engagement & External Climate reporting is a strong indicator of how public policy an organisation manages risk as a whole.