Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 16 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 OUR PURPOSE AND GOVERNANCE CONTINUED Stakeholder engagement More broadly, we actively seek our members’ and Capturing levy payer feedback stakeholders’ views and feedback by methods including We know that schemes don’t choose to use our service, but Taking action Keeping our stakeholders updated quantitative surveys, consultations, focus groups, one-to- this reinforces our ambition to listen carefully to what levy We’re committed to regular reporting and transparency one interviews and our Member Forum. We know that our payers want, understand where we can do better, and then In January 2023, we launched our new intranet, so that our members and other stakeholders such as levy stakeholders expect us to invest responsibly and we believe take action. In addition to our annual consultation on our Connect Online, which aims to improve employee payers can be aware of our progress and activities in all we have a duty to set the highest standards of practice. levy approach, over the past three years we’ve introduced engagement further by sharing news, comment, areas, including stewardship: biannual structured forums for small and medium-sized personal stories and praise. It is proving a Taking action enterprises (SMEs), along with ongoing informal meetings, valuable way of connecting people in our hybrid • We regularly update our website with our latest voting surveys, focus groups and email newsletters to gather working model. and engagement activities and our responses to industry feedback and share information. These communication and government consultations. We met with our Member Forum, which includes channels have been very valuable. • We publish annual RI reports, and provide ESG PPF and FAS (Financial Assistance Scheme) members, and sustainability disclosure in our Annual Report in October 2022 to discuss topics including digital Taking action and Accounts. services and responsible investment. The session • We published our third dedicated Climate Change Report included updates on our approach to climate change We know that our stakeholders this year in line with Task Force on Climate-related and company engagement, and investment case In December 2022, following a six-week consultation expect us to invest responsibly Financial Disclosures (TCFD) requirements. studies to bring issues to life. Given the timing of the on levy rules, we con昀椀rmed we will decrease the meeting, the LDI crisis was also a hot topic (we covered increments between levy bands in the year 2023/24 and we believe we have a duty • Our Head of ESG & Sustainability, Stewardship Manager our response to this crisis in detail in our 2022/23 to signi昀椀cantly reduce volatility in levies. We will also and other senior members of the investment team Annual Report). Feedback from the forum was shared integrate the new asset class information collected by to set the highest standards frequently speak at industry conferences and events. with our Investment team and Leadership team. The Pensions Regulator in 2023 into the levy. These proposals were strongly supported by stakeholders of practice. during the consultation. We reduced the amount we aim to collect from £390 million in the 2022/23 levy year to £200 million Engaging our employees in the 2023/24 levy year. Employee engagement is key to the responsible By reducing the levy by almost half, almost all management of human capital, and therefore forms part schemes will pay less levy. Industry experts told of our new Sustainability Strategy. We are proud to have us our proposals are sensible and welcome at high levels of employee engagement. In our most recent a time when there are many 昀椀nancial pressures employee survey, 95 per cent of respondents agreed that on employers. the PPF makes a positive di昀昀erence to the world we live in, and 87 per cent said they feel proud to work for the PPF.