Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 5 Pension Protection Fund Responsible Investment Report 2022/23 our Chair of the year a nce and governance to engagement Appendices commitment at gla incorporating ESG shareholder rights the coming year Strengthening our stewardship commitment Our Responsible Investment strategy puts ESG The past 18 months have been challenging for everyone in For this reason, we are supportive of innovations looking the industry, with the onset of the war in Ukraine, the LDI to streamline and standardise the asks from ESG reporting, integration at its heart, re昀氀ecting the fact that our crisis in Autumn 2022 and persistent high in昀氀ation resulting such as eFront’s ESG Outreach project. This pilot has in a cost-of-living crisis not seen in decades. Among all of already delivered actual emissions data for a number of our investments can be in昀氀uenced by environmental this, the integration of ESG and climate change remains at portfolio companies. The sooner we can use our day-to-day the core of our stewardship strategy. systems to access emissions data for our private markets and social factors. We view stewardship as one of holdings, the more con昀椀dence we can have in making The companies and external investment managers we investment decisions informed by our portfolio alignment the most powerful ways we can drive companies engage with often describe the concept of being on a positioning. We have also continued the progress on ESG journey with regards to stewardship and sustainability. integration across our internally managed portfolio, rolling to transform, generating real-world impact. This analogy is particularly pertinent when I consider the out improved ESG reporting to our short-term Strategic sentiment globally towards sustainability. Following several Cash desk, which will form the basis of further reporting years of progress, the industry is now experiencing push- improvement for other desks. back on the value of integrating ESG into the investment process from certain parties around the world. In other The development of our Climate Watchlist is a huge step words, the sustainability journey that responsible investors forward for us to focus our e昀昀orts on our most emitting The development of our such as ourselves are on, has become bumpier. investments. Having seen the progress this has made in our utilisation of external data, I am excited about what Climate Watchlist is a huge Despite the change in attitudes, we continue to recognise the could be possible in future years. step forward for us to focus value of strong stewardship and ESG integration as part of the wider investment process. The focus on understanding In December 2022, I was honoured to receive the CIO our e昀昀orts on our most long-term material risks and opportunities has continued Asset Owner Industry Innovation Award for E昀昀orts in ESG. unabated, with improved data accessibility, reporting and This award recognises asset owners driving change within emitting investments. analysis across the portfolio. their allocation approaches and enhancing institutional fund performance. I and the whole PPF investment team I’ve always 昀椀rmly believed in understanding our risks, and will continue to 昀椀nd ways to lead on stewardship best doing so using evidence-based data. This belief is shared practice across every investment we hold, both now across the investment team and has helped us to improve and in the future. our understanding of ESG data and make more informed decisions about the portfolio, especially in our unlisted Barry Kenneth investments where pre-investment due diligence is even Chief Investment O昀케cer more critical.