Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 4 Pension Protection Fund Responsible Investment Report 2022/23 our Chair of the year commitment at a glance and governance incorporating ESG to engagement shareholder rights the coming year Appendices Key highlights of the year Over the year, we continued to develop ESG risk disclosure management across our portfolio. We implemented our Climate Watchlist to set disclosure targets as well as prioritising voting and engagement activities, and continued to establish an internal ESG oversight framework for internally-managed credit portfolios. Putting good Accepted by the Financial Reporting Council (FRC) Managing and Continued to challenge external asset managers to deliver stewardship at the as a 2022 signatory to the UK Stewardship Code – monitoring ESG high-quality quarterly ESG reporting heart of what we do our second consecutive year as a signatory factors to safeguard our members’ Developed monthly internal ESG reporting for our short-term Created a steering group to govern and oversee our new 昀椀nancial futures Strategic Cash desk Sustainability Strategy Obtained valuable ESG and climate Provided ongoing ESG training and education to upskill our disclosures from our Private Markets Board, Executive Committee and Investment team managers participating in the eFront ESG Outreach reporting pilot 60 per cent of our own managers that were contacted in the 60% Established a working group to consider how the pilot phase reported portfolio company recommendations of the Department for Work and Pensions’ data – four times higher than the overall Departmental Review of the PPF could inform our future strategy response rate Encouraging our Created a new Climate Watchlist to focus on Using our Voted at over 4,500 (99.4 per cent) investments to the companies contributing to over 70 per cent >7 0% voice to deliver shareholder meetings where we were >4,500 of our material 昀椀nanced emissions eligible to vote2 contribute to a fairer, positive change sustainable future Engaged with 686 (196 in 2021/22) companies Enhanced our voting guidelines with additional expectations 1 on speci昀椀c issues and objectives 686 for companies’ climate strategy and management Engaged regulators on the recent Liability-Driven Investment Participated in several collective engagement initiatives, (LDI) funding crisis including the Institutional Investors Group on Climate Change’s (IIGCC) new Net Zero Engagement Initiative and Find It, Fix It, Prevent It addressing modern slavery Awards and recognition 2022/23 IPE Awards 2022 – Best UK Pension Fund Pensions for Purpose Paris Alignment CIO Industry Innovation Awards 2022 1 For our segregated equities. The signi昀椀cant year-on-year rise (joint winner) Awards 2022 Our Chief Investment O昀케cer (CIO) Barry Kenneth in company engagement is due to the increase in mandates The judges highlighted our “steady We were shortlisted for ‘Best Climate Change won the award for E昀昀orts in ESG. The awards covered by EOS, our stewardship services provider. performance, with Environmental, Social, Member Communication’ and ‘Best Climate recognise asset owners driving change and 2 For our aggregated listed equities (across both segregated and Governance (ESG) at the heart of our Change Policy Statement’. enhancing institutional fund performance. and pooled funds). investment strategy”.