Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 12 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 Developing our people A Board strategy away-day included deep-dive interactive workshops covering ESG materiality assessments, Net Zero Resources and training target-setting and communicating sustainability issues to all During the year, we have focused on continual stakeholders. Upskilling of the Investment team on climate development and training across the entire PPF has continued throughout the year. The ESG & Sustainability organisation, including the Investment team on ESG team presented the results of the Paris Portfolio Alignment matters and stewardship activities. Within the ESG & Project, including baseline and subsequent progress. Sustainability team speci昀椀cally, we hired a dedicated Executive Committee and Board members were also Stewardship Manager, providing a senior person with invited to attend. specialist experience to lead our strategy and activities Performance incentivisation in this area. The Stewardship Manager works closely with the rest of the ESG & Sustainability team to ensure best We set performance incentivisation for both employees practice and that learning opportunities are leveraged. and external agents. For all our sta昀昀, performance is A Sustainability Analyst has also been appointed to measured against a balanced scorecard of objectives focus on sustainability e昀昀orts across the PPF. covering business-as-usual activities, initiatives, and behaviours, the latter of which accounts for a speci昀椀c We also continue to work with an external specialist percentage of an employee’s annual performance stewardship services provider, EOS, which has its own assessment. This includes a review of an employee’s extensive, diverse and experienced stewardship team. performance with reference to their core behaviours We regularly review EOS and our chosen external asset across our ICARE values (see page 8). We also have an managers to ensure they have the right expertise, investment directorate balanced scorecard with speci昀椀c policies, research capabilities and resources to carry RI and stewardship KPIs that the Investment team is out day-to-day ESG integration and stewardship measured on, as well as a culture assessment. activities on our behalf. See page 20 for more detail on how we assess our stewardship services provider and our asset managers within our appointment and monitoring processes. A governance aim this year was Training sessions and teach-ins for the Investment team to build internal knowledge and have been provided on an ongoing basis. Our Talent & Development department is fully supportive of our understanding at the PPF of investment sta昀昀 acquiring ESG-speci昀椀c quali昀椀cations, sustainability, and especially including the CFA Certi昀椀cate in ESG Investing and the recently-launched CFA Certi昀椀cate in Climate and Investing. climate, issues through training A governance aim this year was to build internal and education. knowledge and understanding at the PPF of sustainability, and especially climate issues through training and education. Two external speakers were invited to speak to the PPF Board about their experience and insights, followed by a panel discussion and Q&A. One speaker gave an overview from a non-昀椀nancial services perspective and the other focused on how a listed asset manager is approaching sustainability and its commitment to supporting Net Zero.