Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 3 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 Message from our Chair At the PPF, we believe we are in a unique position to help drive change in the pensions industry. As we outlined in our sustainability strategy earlier this year, our overall ambition is to catalyse the growth of a sustainable pensions industry. As part of our established approach to responsible investment, we embed material environmental, social and corporate governance (ESG) considerations across We recognise that we can our investments. Over the last year, we continued to develop risk disclosure management in this area across have a much greater voice our portfolio and challenge our external investment in in昀氀uencing change by managers to deliver high-quality ESG reporting. Pushing ourselves further We want to contribute to the global transition to working together with Net Zero through our portfolio and engagement other large investors. We want the PPF to be known for best practice in activities. This year we created a new Climate sustainability. One of the four goals we set ourselves Watchlist to address the companies contributing to in our sustainability strategy is to demonstrate over 70 per cent of our material 昀椀nanced emissions. excellence in responsible investment. We believe We recognise that we can have a much greater that by acting as a responsible asset owner, we can voice in in昀氀uencing change by working together protect and enhance the value of our investments. with other large investors. This year we participated This year we enhanced our voting guidelines with in several industry collaborations, including Find It, additional expectations for climate strategy and Fix It, Prevent It, addressing modern slavery within management, and used our voice to deliver positive businesses and their supply chains, and Climate change by voting at 99.4 per cent of shareholder Action 100+, the largest-ever investor engagement meetings where we were eligible to vote. initiative on climate change. We will continue to do all that we do in a responsible Through continuing to work closely with our asset and transparent manner, while delivering for our managers and partners, and by sharing our learnings members and stakeholders. with the wider industry, we aim to ensure a better future for all. Oliver Morley Kate Jones Chief Executive Chair