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I am extremely grateful for the PPF’s compensation. Without it I would not have had a pension and my retirement would have been very different.


PPF Member, Bedfordshire

PPF Member using laptop

Our sustainability strategy

As an organisation that takes a long-term view in all that it does, we have always been committed to operating in a sustainable way. As climate change, social inequality and corporate purpose receive unprecedented global attention, it’s important that we embed environmental, social and governance considerations not only into our investment decisions, but across all our operations.

We recently published our sustainability strategy, bringing together our work and ambitions in responsible investment, D&I, stakeholder engagement, Community Impact and managing our operational footprint. Our strategic aim is to catalyse the growth of a more sustainable pensions industry and clearly demonstrate our commitment to doing the right thing, making a difference and leading by example.

We believe that making sustainability a priority in all our business activities and decisions will enhance value for all our stakeholder groups. We also believe that this approach is critical to mitigating some of the risks we face.

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Sustainability lies at the heart of our decision making and has been a priority throughout our recent digital transformation.

Lowering our operational emissions through technological change

Sustainability lies at the heart of our decision making and has been a priority throughout our recent digital transformation. We’re pleased to have made some carbon efficiencies through the way we use technology. By completing the migration of all our data and technology services to the cloud, we’ve managed to make significant reductions in our operational energy emissions. We are moving away from on-premises traditional datacentres, which can be CO2 intensive, to cloud-based platforms, such as Microsoft Azure.

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3 PPFs colleague at desk

Progress on active stewardship and transparency

We were delighted to receive confirmation from the Financial Reporting Council (FRC) that we continue to meet the expected standard of reporting to remain a signatory to the UK Stewardship Code. We are pleased that our efforts and our drive to be continually improving have been recognised.

We’ve seen significant progress in our fund managers’ own ESG practices, as evidenced by the growth over the last few years in the number of our external managers who have become PRI signatories (from 70 per cent in 2020 to 90 per cent in 2022).

During the year, we have developed a detailed Stewardship plan that targets better quality disclosure and clearer transition strategies from our issuers. Some of these companies still need to start disclosing so we will continue to encourage this through supporting channels like leading in direct company engagement for a number of companies as part of the annual CDP Non-Disclosure Campaign.

In private markets, we have been heavily engaging with our private markets managers to support an ESG outreach project led by one of our data solution providers. Our extensive involvement in the pilot in 2022 was very fruitful – with our strong encouragement, 60 per cent of our managers that were included in the pilot reported portfolio company data, which is four times higher than the overall response rate.

Industry and investor collaborations

Collaborating with partners and others in the industry is fundamental to our RI strategy and we will continue to help define best practice. Our active involvement in collaborative engagements and industry working groups continued during the year.

We have been chairing a subgroup as part of our membership of the DWP Taskforce for Integrating Social Factors, focusing on the sources of data available to pension funds and other investors.

As part of the ‘Find It, Fix It, Prevent It’ initiative on Modern Slavery, we led a collective investor engagement with one UK company in the building sector, focusing on modern slavery in its supply chain and operations, and acted as a support investor during a meeting with another. Our findings have been fed back to the wider investor group and will form part of a sector analysis later this year.

We’ve been actively contributing to the FCA Vote Reporting Group, whose objective is to significantly raise global standards of vote disclosure reporting and potentially revolutionise the ability of stakeholders to access and analyse individual manager vote rationales at shareholder meetings. The proposals will go out to wider consultation shortly.

Reporting on climate change

We consider climate change to be a systemic risk, which can affect the value of our investments across the short, medium and long term. As a supporter of the Task Force on Climate-related Financial Disclosures (TCFD), we commit to reporting on our climate-related governance, strategy, risk management and metrics and targets.

We’ve taken important steps to address key climate related risks facing our portfolio and pursue a market leading approach in this area. Our dedicated TCFD climate reports share this information in-depth, and we’ve included an annual summary.

Helping to boost corporate transparency

CDP is an organisation that provides a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. During the year, we supported its annual CDP Non-Disclosure Campaign (NDC) which is an investor collaboration to engage with companies that have failed to respond to requests to disclose through the CDP’s climate change, forests and/or water security questionnaires.

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London cityscape with office buildings

Greening Government Commitments

We support the Government’s Greening Government Commitments and reflect the ambitions, commitments and targets through our investment practices and business operations where possible.

Our ambition is to operate in a manner which is consistent with the Paris Agreement by minimising our own environmental impacts. We will aim to reduce greenhouse gas (GHG) emissions from our building management, supply chain, technology and travel activities.

Stakeholder engagement with integrity and respect

Employee and stakeholder engagement

Employee engagement is key to the responsible management of human capital, and therefore forms part of our sustainability strategy. We are proud to have high levels of employee engagement. In our most recent employee survey, 95 per cent of people agreed that the PPF makes a positive difference to the world we live in, and 87 per cent said they feel proud to work for the PPF.

In January 2023 we launched our new intranet, Connect Online, which aims to improve employee engagement further through the sharing of news, comments, personal stories and praise, and is a particularly important way of connecting people in our hybrid working model.

Our Employee Liaison Committee (ELC), which represents colleagues’ views, gives feedback on key areas, such as hybrid working. The ELC also plays an important role in the social life of the organisation.

We also work hard to build and maintain strong relationships with external stakeholders including our members, levy payers, parliamentarians, regulators, trade bodies and industry groups. Through two-way communication with these groups, we understand the issues that matter to them and our effectiveness in fulfilling our role. We met with our Member Forum, which includes PPF and FAS members, in October 2022 to discuss topics including our digital services and responsible investment.

A diverse and inclusive workplace

Making sure the PPF is an inclusive place to work remains a priority. Our aim is to create a diverse and supportive culture that enables everyone to be themselves and feel valued. We’ve focused on investing in future leaders by bringing in more people from under-represented groups in junior roles and promoting internal talent. Over the year, we’ve seen an increase in representation of several under-represented groups.

With a year-on-year increase of employees from an ethnic minority background from 23.7 per cent in 2021 to 26.1 per cent in 2022, we’ve made steps in the right direction towards our target to increase ethnic minority representation across the organisation to 30 per cent by December 2023. Overall, our progress on narrowing our ethnicity pay gap is slow, partly due to our low levels of staff turnover. We know that the reason for our pay gap is that most of our senior leaders are white. Also, ethnic minority employees are still underrepresented in business areas that command higher pay and bonuses, such as investment and technology.

The Race at Work Charter

As part of our commitment to create a representative organisation and to tackle barriers that ethnic minority employees face in the workplace, we signed the Business in the Community Race at Work Charter in 2019. We’ve continued to apply its seven standards across the organisation.

We have an employee-led Race Action Group that provides a safe space for employees to share their perspectives and proposals for building a more inclusive organisation. The group has led our reverse mentoring initiative, which enables employees, often senior leaders, to be mentored by colleagues from an ethnic minority background. This builds awareness of the challenges faced by ethnic minority employees, fostering a culture where all experiences and ideas are valued.

“The Race Action Group is a breath of fresh air. The engagement is passionate and those that head up the group really target the issues that need to be openly discussed.” - PPF employee

Increasing female representation

Improving representation of women in senior management and higher-paid positions is one of our key D&I objectives. We’re nurturing our future female leaders through mentoring, coaching, and internal development programmes.

We remain positive that we’ll reach our Women in Finance Charter target to have women in 45 per cent of senior roles by December 2023. Women make up half of our Board and Executive Committee.

While we have a long way to go to close our gender pay gap, we’ve made progress on reducing the gap since we started reporting it in 2017. In order to be an employer of choice for women, we support flexible working wherever feasible. We’ve introduced even more flexibility with hybrid working and flexible working hours. We’ve also focused on creating a menopause-friendly organisation and promoting male allyship.

“I believe that the PPF is fully committed to diversity and inclusion, and I am confident that will stay the case.” - PPF employee

Supporting employees with disabilities

We are committed to being an employer of choice for people with disabilities, and to make sure we’re doing all we can to support our employees with disabilities. This year we went beyond statutory requirements to report on our disability and long-term health condition pay gap for the first time.

As a Disability Confident Leader, we’re attracting a more diverse candidate pool for our vacancies and we’ve seen an increase in applicants who disclosed a disability or health condition during the recruitment process. All our external vacancies are advertised on the job board of disability equality charity Scope.

Over the course of the year we’ve made practical adjustments to our head office, workstations and IT software to support our employees with disabilities with their work and to enable easier access to open plan office areas and meeting rooms.

Mental health support

Understanding mental health issues and promoting openness surrounding these issues within our organisation is crucial to supporting our employees. All managers have mental health training within their first six months of joining the PPF or becoming a line manager. This training is designed to provide them with the tools they need to promote open communication with their team members.

We also have eight trained Mental Health First Aiders who are on hand to advise our employees on where they can find the appropriate support for their individual needs.


We believe that apprenticeships benefit our organisation by improving the diversity of our workforce and developing skills that meet our future needs. We’re proud to provide a range of apprenticeships across the business, including a partnership with Investment20/20, a scheme designed to bring talented young professionals from all backgrounds into the investment industry. We also work with a local college in Croydon, where our head office is located, to provide insight into what a career in investment looks like.

Employee remuneration

We know that the rising cost of living has been challenging. We want to continue to attract and retain talented people. We continually review our reward strategy and benefits package to make sure we can do this, and we commissioned an independent review of our reward strategy. We’re comfortable that the total remuneration we pay is competitive for the roles, responsibilities and location.

85% of employees with disabilities and long-term health conditions feel positive about working at the PPF

My apprenticeship at the PPF not only allowed me to work close to home, but I was also being paid to learn. Balancing the work with my role was challenging, but I loved it. After finishing my apprenticeship with a distinction, I secured a permanent job at the PPF, and, more recently, a promotion.
Grace Nebbett

Resolutions Case Handler

Grace Nebbett, PPF colleague, in the office

Championing collaboration and leading by example

Managing our impact through our supply chain

Although our investment portfolio accounts for our biggest impact by far, we also aim to minimise our environmental footprint and increase the positive impact we have through our own supplier relationships. We aim to embed sustainability through our procurement processes and contract lifecycles, focusing on the same themes of climate change, D&I and modern slavery as our RI approach.

Community impact

As part of our sustainability strategy, we recently launched a new Community Impact programme, replacing our former Corporate Social Responsibility programme.


Asset manager assessments

For the second year, we asked D&I-related questions as part of our annual asset manager operational due diligence process in 2022/23. We are using the responses to these questions, which are the same questions as those asked in our manager selection and appointment process, to monitor their year-on-year progress on D&I. We’ve chosen not to set formal targets on this as yet, but now that we have two years of data we have begun incorporating the findings into our manager assessments.


I’d always thought that the asset management industry was hard to get into, that it wasn’t very diverse, and you had to come from a top university. Investment20/20 is trying to make the industry more inclusive and I wanted to work for an organisation that recognised this. At the PPF you’re encouraged to be yourself.

Zoe Innerarity

Operations Analyst

PPF colleague sat at meeting table

Printed copy of ARA on wood surface

Download the PDF

View or download the PDF version of our Annual Report.