Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 6 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 progress at a glance How we advanced our plans in 2022/23 Stewardship Climate change Reporting We said we would… So we… We said we would… So we… We said we would… So we… Continue to - Participated in several industry initiatives Use the 昀椀ndings from - Created a Climate Watchlist of 87 Continue to work - Engaged our external private managers collaborate to drive involving a range of organisations that our Paris Portfolio companies that represent over with our private assets to encourage data submission to eFront, positive societal and include regulators, asset owners and Alignment Project to 70 per cent of our 昀椀nanced emissions managers on the achieving a response rate four times environmental action asset managers develop a strategy eFront ESG Outreach higher than the pilot project overall See page 30 among investment See page 34 to engage with pilot to improve ESG See page 27 market participants companies identi昀椀ed - Are establishing a targeted engagement data disclosure in - Chaired a sub-group of the Taskforce on as our highest priority action plans for each company on the unlisted markets Social Factors led by the Department for Climate Watchlist Work and Pensions engagement targets for Continue to work - Engaged extensively with managers carbon emissions See page 30 with a focus on reporting, engagement See page 35 with our managers Work with our asset - Worked on standardising emissions to improve their ESG and using their voice for positive - Participated in the FCA Vote Reporting managers, especially measurement in our Real Estate book and stewardship sustainability/ESG outcomes, resulting in 1 Group, aiming to improve the quality of in real assets, to disclosures in improvements among ‘liquid’ portfolios disclosure-linked proxy voting activities See page 19 See page 20 better understand line with our own See page 35 risks relating to - Continued to work with our Timber evolving reporting - Standardising the emissions climate change & Farmland managers to improve requirements measurement in the Real Estate Book Develop a holistic - Began embedding our sustainability data reporting and industry-led Sustainability considerations across the organisation, See page 19 Strategy as part of led by our six sustainability working groups See page 20 standardisation the PPF’s 2022–2025 See page 10 Continue to integrate - Continued to integrate Climate Value At initiatives Strategic Plan 1.5°C global warming Risk analysis, now covering 55 per cent of Engage with our - Collaborated with our external consultant - Continue our work to report on and limits across our our portfolio managers, issuers and to enhance our Real Estate portfolio’s reduce the PPF’s own operational investment, analysis Paris alignment methodology environmental impact See page 35 public policymakers and reporting - Started to take account of Scope 3 to explore ways to See page 19 See page 10 activities, including improve the level and pre-investment emissions in our portfolio - Participated in the PRI reporting project quality of ESG data to create a due diligence questionnaire due diligence See page 35 disclosure for credit (DDQ) for private debt and private markets See page 26 - Engaged Sovereign Debt managers to improve ESG reporting and practices See page 25 1 ‘Liquids’ refers to Global Credit, Public Equity, Absolute Return, Emerging Market Debt and Strategic Cash.