08 Pension Protection Fund Climate Change Report 2022/23 GOVERNANCE AND ACCOUNTABILITY CONTINUED Our governance-related activities during the year continued Function Roles & responsibilities Climate-related activity in 2022/23 EXPANDED REMIT Part of the Provided updates at the daily Investment Team meetings on ESG issues and trends throughout the year 5 ESG & Sustainability Investment Team, helping to oversee Team Remit expanded to include delivery of the PPF’s organisational Sustainability Strategy, and renamed the ESG & Sustainability Team implementation of the RI framework, monitor Stewardship Manager recruited to focus on the Stewardship strategy and activities, including Net Zero stewardship, and to build investments for ESG on existing oversight mechanisms risks and opportunities, engage with portfolio A Sustainability Analyst also hired this year to help develop and implement the new Sustainability Strategy managers, external managers and Updated our voting guidelines for the 2023 voting season, in particular setting higher expectations from companies on climate- our stewardship related issues (see Appendix F) services provider Finalised our Climate Watchlist of around 80 companies in our public markets portfolios that will receive more targeted engagement around climate transition Asset Managers Follows the PPF’s Asset Managers: 6 and Stewardship RI framework and Oversight of our external managers continued through their ESG and climate reporting to us (requested quarterly from our stewardship policy, Services Provider* liquid markets managers and annually from private markets managers) undertakes ESG * EOS at Federated integration and issuer Hermes (EOS). engagement then Encouraged a number of private markets managers to disclose core ESG and climate data through the new eFront ESG reports transparently Outreach pilot project and accordingly Where pooled funds are not included in the EOS service, we continued to hold quarterly manager meetings, requesting bespoke ESG reporting in advance Stewardship Services Provider: Last year’s action to consolidate several external managers onto the EOS voting and engagement platform has enabled increased oversight and continuity in our stewardship activities this year Engaged with EOS on policy updates and service provision, participated in group feedback sessions and meetings to ensure robust oversight The PPF retained the ability to review individual meetings and submit vote instructions on all voting platforms, amending individual votes where we see 昀椀t