Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 32 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 APPROACH TO ENGAGEMENT CONTINUED Our issuer engagement progress Engagement progress and outcomes We made solid progress in delivering objectives across regions and themes. At least one milestone was moved forwards for about 53% of our objectives during the year. The following chart describes how much progress has been made in Progress and outcomes from EOS-overseen assets achieving the milestones set for each engagement. In 2022/23, EOS engaged with 686 companies that we invest in (196 in 2021/22) on 1,098 objectives and 2,928 Environmental 188 284 broader ESG strategy, risk and communication issues and objectives. Its holistic approach to engagement means that it typically engages with companies on more than one topic Social and Ethical 129 150 simultaneously. The signi昀椀cant rise in companies is due to the increase in our mandates covered by EOS, since the end Governance 136 85 of the 2021/22 昀椀nancial year. Strategy, Risk and 68 58 Engagement by theme Communication A summary of the issues and objectives on which EOS No change Positive progress (engagement moved forward at least one milestone during the year to date) engaged with companies in 2022/23 is shown below. Engagement progress in 2022/23 EOS engaged with 686 companies on ESG objectives As shown on the previous page, EOS carries out our behalf in the following regions by theme engagement through a four-step ‘milestone’ process. This begins by raising a concern that EOS follows up diligently until it achieves a measurable outcome. The process can span quarters or even years. Developed Asia 82 EOS had another strong year of delivering engagement Australia and 26 Environmental 472 objectives. During the year, progress on 577 of the New Zealand Social and Ethical 279 outstanding objectives moved forward at least one EM & 78 milestone in the EOS process. The chart on the top right 686 Frontier Markets 1,098 Governance 221 describes how much progress has been made in achieving Europe 153 Strategy, Risk and 126 the milestones set for each engagement theme. Communication North America 281 During the year, 159 objectives were marked as complete United Kingdom 66 and 36 objectives had progress during the year but have since been discontinued. 294 were new objectives established during the year. Of the 521 objectives without progress during the year, 88 were discontinued and 11 were deemed to have completed the objective. The remaining During the year, 159 objectives were marked as complete 422 objectives stayed at the same milestone stage. Engagement in UK Public Credit and Strategic Cash and 577 objectives progressed to the next milestone or Of the 686 companies engaged by EOS during the year, above. 294 were new objectives established during the year. 67 companies were held in our in-house UK Credit and Strategic Cash portfolios and over 80 per cent of these were acted upon speci昀椀cally during this time period.