34 Pension Protection Fund Climate Change Report 2022/23 METRICS AND TARGETS CONTINUED Measuring and managing the impact of our operations Addressing our own environmental impacts We continue to work to reduce our electricity consumption CASE STUDY Most of our material exposure to climate-related risks through greater energy e昀케ciency where possible. As the exists in the downstream Scope 3 category 15 ‘昀椀nanced table overleaf shows, our Scope 2 location-based emissions Our devices have a emissions’ in our investment value chain. However, we have steadily fallen as energy e昀케ciency has improved, with Lowering our organisational emissions support and re昀氀ect the UK Government’s commitment to a 34 per cent reduction since our 2019/20 baseline year. through digital adoption heavy environmental reduce its impact on the environment. Therefore, we’re As Net Zero for our ‘easier’ direct organisational emissions cost. Working in also reporting our ambitions, commitments and targets has already been achieved, we are now focused on how Recent digital transformation at the PPF has prioritised sustainability under the Greening Government Commitments (GGC) we can reduce our organisational emissions within our and helped us achieve a range of carbon e昀케ciencies. collaboration with where possible. value chain across Scope 3 categories 1, 6 and 7 (purchased goods & services, business travel and employee commuting/ By migrating all our data and technology services to cloud-based platforms our colleagues to Over the last year, we conducted a review of the PPF’s own such as Microsoft Azure, we’ve made signi昀椀cant reductions in the PPF’s environmental impacts as a business to establish a baseline. remote working). organisational energy emissions. For example, in March 2022, our physical reduce our corporate Given the availability of data, we selected our 2019/20 Business travel on-premises data centres consumed 7,111kWh of power. By March 2023, 昀椀nancial year as the most appropriate baseline year and following the cloud migration, this had fallen to 2,951kWh. devices helps to will use this as a basis to measure progress on reducing We have started to take account of our business travel our organisational impacts. We have intentionally excluded activities in our Scope 3 emissions analysis. A challenge Adopting cloud-based services has also allowed employees to use their reduce our overall 2020/21 and 2021/22 from our measurement of progress is how best to capture employees’ travel data, so currently, own phones for work purposes, reducing the need for PPF-issued mobile operational as the lockdown periods during the 2020–22 COVID-19 we use travel expense invoices to calculate emissions. phones by 72 per cent. Being able to collaborate more easily digitally has pandemic means the data would not accurately re昀氀ect Business travel remains an essential element of our allowed us to reduce the number of printers by 33 per cent, which has also carbon footprint. our business-as-usual activities. business, particularly when carrying out due diligence meant reduction in toner cartridge disposal, paper usage and site support. of our investments and key suppliers. However, we are Assessing our o昀케ces working to understand its impacts and will focus on The PPF o昀케ces in Croydon and Cannon Street are based encouraging employees to consider alternatives where Simon Liste in shared-lease buildings so we have limited control over possible. Scope 3 emissions are already lower than them, nor complete access to activity data and systems. our 2019/20 baseline year by 12 per cent as the table, Chief Technology O昀케cer We mainly source energy-use data from our building overleaf, shows. managers, but have used estimates of our share of usage Our suppliers when information is not available to us. To improve the accuracy of our reporting, we have restated our Scope 2 We now consider sustainability in all our procurement location-based emissions data for 2021/22 and 2020/21 to strategies and assess the ESG practices and commitments also include our data centre energy consumption. of suppliers in many tenders. This includes reviewing suppliers’ Net Zero commitments, carbon reduction plans, Both of these o昀케ce buildings are already very e昀케cient, with commitment to ESG reporting to meet TCFD requirements, no direct combustion facilities onsite and BREEAM ratings of and Diversity & Inclusion reporting. ‘Excellent’ and ‘Very Good’ respectively. All of the electricity our o昀케ces use is sourced via 100 per cent renewable Our Sustainable Procurement Statement and Policy was electricity tari昀昀s, which have been in place since October approved at the end of the 2022/23 昀椀nancial year. This 2019. Therefore, our direct organisational Greenhouse captures our procurement approach and governs our Gas emissions (Scope 1 and 2) are e昀昀ectively zero using practices. We communicate our commitment to working a Scope 2 market-based approach. Our data centres have with suppliers who share our ambition for sustainable also sourced 100 per cent renewable electricity during the business practices including reducing and reporting on reporting period. their own carbon emissions and environmental impact.