03 Pension Protection Fund Climate Change Report 2022/23 Introduction from our Chair Our work at the PPF has a We have always been guided by the principle • Demonstrating excellence in responsible investment that investing responsibly is critical to ensuring • Ensuring e昀昀ective stakeholder engagement with real impact on people’s sustainable returns for our stakeholders. For this integrity and respect reason, responsible investment has remained central lives. We believe embedding to how we manage our investment portfolio. We also • Championing collaboration and leading by example believe that placing sustainability at the heart of our • Being accountable for minimising our own sustainability in all of our activities is key to mitigating some of the material environmental impacts. ESG risks we face as an organisation. We have set ourselves high standards on climate activities and decisions will One of the four priorities of our Strategic Plan is change and responsible investment. Our target is to ‘Making a di昀昀erence’. As a public body, we’re in reach Net Zero for our operations by 2035 or sooner. bene昀椀t our members, levy a unique position. We want to share what we’re For our investments, we seek to contribute to the learning with others, and we want to catalyse the global transition to Net Zero through our portfolio payers, employees and our growth of a more sustainable pensions industry. and engagement activities. Our ambition is to make a di昀昀erence using our local communities alike. in昀氀uence in the pensions industry and in our The integrity of our commitments matters a great local communities. deal to us. Our sustainability goals will be re昀氀ected We were very proud to be named Best UK Pension Fund as a in every part of life at the PPF, from investment joint winner at the IPE Awards in December 2022. The judges As part of this, we have developed a holistic decisions and engaging with our stakeholders, highlighted the PPF’s ‘steady performance, with Environmental, sustainability strategy that builds on our established through to recruitment and the selection of Social and Governance at the heart of our investment strategy’. responsible investment strategy, our Diversity and our suppliers. We are proud to share our update This win recognises our e昀昀orts to be a leading responsible Inclusion strategy, and our Community Impact for this year. investor and the progress we have made to improve access to plan. We’ve drawn upon our organisational values, Kate Jones ESG-related data, advance ESG practices among our external the Five Capitals framework for sustainability, and Chair managers and support opportunities to deploy capital for an assessment of our material ESG risks, to identify positive social and environmental impact. four key sustainability goals: Pension Protection Fund