38 Pension Protection Fund Responsible Investment Report 2021/22 APPENDICES CONTINUED 1.7. In addition, t he Board will provide the Fund Parties Appendix H with an Excel document con昀椀rming the constituents Our ESG review process of the Exclusion List as provided in the scanned pdf copy. Following receipt of such instruction, the Fund Our four-stage ESG review is an essential part of selecting and appointing managers that align with our principles. Parties shall use reasonable endeavours to e昀昀ect such exclusions within a reasonable timeframe and RI criteria and ESG considerations as part of our investment process will con昀椀rm to the Board that the portfolio has been brought in line with the requested exclusions. If it will 1. Request for proposal/ 2. Selection/ become clear to the Fund Parties that for any reason Stage identi昀椀cation due diligence 3. Appointment 4. Post funding it will not be possible to bring the portfolio in line with ESG Evidence of 昀椀rm-level Ensure ESG processes Binding ESG and climate Ongoing monitoring the requested exclusions, the Fund Parties will notify requirement and strategy-level ESG are in place, appropriate risk clauses inclusion in and engagement with the Board. policy; PRI support; and industry guidelines are legal documentation external managers, 1.8. The Fund P arties shall prepare and send to the Board capabilities or resources followed and reporting (e.g. IMAs, side letters) regular fund-level ESG, and such other person or persons noti昀椀ed from time for ESG integration is available carbon and stewardship to time to the Fund Parties in writing on behalf of the reporting; commitment to Board as soon as reasonably practicable and in any continuous improvement event no later than eight (8) Business Days after the end of the relevant quarter, quarterly reports on: 1.8.1. comp liance with the policies and standards set out in the Statement of Investment Principles and Principles for Responsible Investment, including any instances where those policies and standards were set aside in order to achieve investment objectives; 1.8.2. t he key material ESG and climate-related concerns and relevant metrics associated with Portfolio investments and an explanation of how the Fund Parties have sought to identify, monitor and manage them; 1.8.3. t he stewardship activities – including issuer engagement – during the reporting period, including evidence of the e昀昀ectiveness of those activities; and 1.8.4. v oting activities over the reporting period, including full disclosure of any votes and an explanation of any exercises of discretion under the Fund Parties’ voting guidelines and con昀氀icts of interest.