Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 11 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 Setting our 2023 voting guidelines Reporting on RI and stewardship to our committees During the year under review, our Investment Committee Keeping every level of our governance structure informed of, approved the updates to our PPF voting guidelines. These and able to feed back on, our RI and stewardship activities provide clarity on our intentions for voting decisions around is essential to monitoring our progress. Robust internal core stewardship issues during the Annual General Meeting reporting ensures we remain aligned with agreed actions (AGM) season. Developed by our ESG & Sustainability team, and principles and can spot any challenges or con昀氀icts of the guidelines leverage best practice, as demonstrated by interest at an early stage. our stewardship services provider EOS and closely align Every quarter, our Investment Committee Report provides with its global voting guidelines. the committee with a review of our RI policies, processes Our key stewardship themes for 2023 are guided by our and policy review schedule. It also gives updates on own organisational priorities. They continue to focus on: stewardship, manager appointments and monitoring, management of climate-related risks, modern slavery, board as well as key quantitative metrics such as ESG scores diversity in terms of gender and ethnicity, and executive of companies and carbon intensity of our investment committee diversity. The enhancements made for the 2023 portfolios by asset class. We provide monthly updates AGM season re昀氀ect our increasing expectation of what we to our CIO and the Head of Investment Strategy on the expect from our corporate issues on these key themes. management of our climate-related and other ESG risks. The voting guidelines document can be seen in Appendix E. We also highlight portfolio-relevant information or events as they arise in our daily investment meetings. The aim of these guidelines is not to duplicate EOS’s own global voting guidelines. Rather, they provide stakeholders with a concise document outlining areas of focus that are The composition of the material to us. On matters related to good governance such as board independence, competent leadership, and PPF Board has always separation of the governance roles, we primarily look to leverage the deep expertise and recommendations of EOS. been crucial in stewarding Board ESG credentials value creation while also The composition of the PPF Board has always been managing ESG risks. crucial in stewarding value creation while also managing ESG risks. We have a Board member with particular ESG expertise, who is also a member of our Sustainability Strategy Group. The PPF Board is proactive and regularly updated by the ESG & Sustainability team on the latest developments and thinking around ESG, sustainability and climate risk management.