11 Pension Protection Fund Responsible Investment Report 2021/22 OUR PURPOSE AND GOVERNANCE CONTINUED Key governance actions this year The aim of our guidelines is not to duplicate the EOS global voting guidelines, but rather to provide stakeholders with a 1. Reviewing our principles and policies concise document outlining areas of focus on issues that Our Board has committed that the Investment Committee are material to us. On matters related to good governance will review our Statement of Investment Principles (SIP) and such as board independence, competent leadership, and all responsible investment policies annually to ensure they separation of the governance roles, we primarily look to stay relevant and ambitious. leverage the deep expertise and recommendations of EOS. During the year, the Investment Committee reviewed our 3. Reporting on RI and stewardship to our committees SIP, our Climate Change Policy, our Stewardship Policy and Keeping every level of our governance structure informed our Exclusion Policy. The committee also approved our new of, and able to feed back on, our RI and stewardship voting guidelines. All policies are available on our website. activities is essential to monitoring our progress. This ensures we remain aligned with agreed actions and 2. Setting our 2022 voting guidelines principles and can spot any challenges or con昀氀icts of During the year under review, our Investment Committee interest at an early stage. approved the new PPF voting guidelines, which provide Every quarter, our Investment Committee Report provides clarity on our intentions for voting decisions during the the committee with a review of our RI policies, processes annual general meeting (AGM) season around a few core and policy review schedule. It also gives updates on stewardship issues. Developed by our ESG team, the stewardship, manager appointments and monitoring, guidelines leveraged best practice, as demonstrated by as well as key quantitative metrics such as ESG scores our stewardship services provider EOS and closely align and carbon intensity by asset class. with its global voting guidelines. Our key themes for 2022 have been guided by our own We provide monthly updates on the management of our organisational priorities. They include: management of climate-related and other ESG risks to our CIO and the climate-related risks, modern slavery, board diversity Head of Investment Strategy. We also highlight portfolio- in terms of gender and ethnicity, and executive relevant information or events as they arise in our daily committee diversity. investment meetings. Keeping every level of our governance structure informed of our RI and stewardship activities is essential to monitoring our progress.