Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 9 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 Our governance structure and activities Strong governance, with clear oversight, responsibility and accountability, is key to delivering on our RI strategy as well as our overall long-term investment objectives. Teams at every level of our governance structure have continued to integrate ESG factors into portfolio investments. Whilst challenges lay ahead of us, particularly around data in alternative asset classes, appetite for further improvement remains high. Function Roles & responsibilities Taking action: RI activities in 2022/23 PPF Board Highest governing body with Approved new voting guidelines in Delivered ongoing training and Approved the Sustainability Strategy Established working group oversight for RI and stewardship March 2023 (see Appendix E) education to upskill our Board, covering all aspects of the PPF’s to consider how the activities (including climate-related) Executive Committee and operations and formation of recommendations of the DWP Investment team Sustainability Strategy Group could inform future strategy Investment Committee Responsible for developing and Approved the adoption Reviewed and approved Joined in-house teach-ins during Approved the restructuring of the maintaining the PPF’s RI and and implementation of our RI policies including the the year, providing insight into the investment portfolio separating fund stewardship principles and policies our Climate Watchlist stewardship policy and updated implementation of our policies requirement for current members (including climate-related ones) voting guidelines and future claims Investment team Led by the CIO, responsible for Worked with ESG & Sustainability Implemented a signi昀椀cant Provided monthly ESG updates to Portfolio managers participated ensuring adherence to the RI Team to develop monthly internal restructuring of the portfolio the Investment Committee in quarterly ESG external Framework, stewardship principles fund ESG reporting for our manager meetings and associated policies across all short-term credit & strategic asset classes whether internally or cash desk externally managed ESG & Sustainability team Part of the Investment team, helping Updated our voting guidelines Provided updates in the daily Reviewed all managers and Chaired the newly established to oversee implementation of the RI during the year, to re昀氀ect higher Investment team meetings on stewardship providers at Sustainability Strategy Group Framework, monitor investments for expectations on speci昀椀c issues ESG issues and trends throughout least annually (under the ESG team’s expanded ESG risks and opportunities, engage of importance the year remit to focus on the PPF’s own with portfolio managers, external sustainability practices) managers and our stewardship services provider Asset Managers and Follows the PPF’s RI Framework and Asset managers Service providers Stewardship Services Provider stewardship policy, undertakes ESG Good level of participation in the Improved the quality of disclosure Aligned the annual RI reporting Worked with the PPF to implement integration and issuer engagement then eFront disclosure pilot project for for our ESG quarterly reporting structure to our March 昀椀nancial our Climate Watchlist reports transparently and accordingly private assets template over the year, including year saving signi昀椀cant time on for alternative asset classes reporting our annual data