29.10.2024
- PPF launches its fifth Responsible Investment report, highlighting the impact collaboration across both Private and Public markets has had on disclosure and driving value across its portfolio
- Highlights include:
- Three industry initiatives that have been instrumental in supporting company engagement
- Improved disclosure of data to analyse company progress towards a Net Zero global economy
- integration of ESG reporting across internal portfolios
- Continued efforts in proxy voting, a co-filed shareholder resolution at Shell plc, plus full disclosure on voting records published on the PPF’s website
The Pension Protection Fund (PPF) has today published its fifth Responsible Investment report, which reinforces its commitment to promoting sustainability in the pensions industry and demonstrates the power industry engagement and collaboration across its asset managers, portfolio companies, industry bodies and peers has had over the last 12 months.
The annual report summarises the stewardship and governance activities carried out by the PPF that have not only driven greater participation and engagement industry wide, but also have improved reporting, risk analysis, transparency and driving positive change. As a result, the PPF has received recognition from three awarding bodies and, in the last reporting year, was accepted by the Financial Reporting Council (FRC) as a 2023 signatory for the third consecutive year.
Barry Kenneth, Chief Investment Officer at the PPF said: “The last 12 months has been a period of evolution and engagement, and this report outlines our continued commitment to align with the Stewardship Code, showcasing the steps we have taken and measures we have advanced to protect and drive value across our portfolio.
“We have made huge strides in disclosure, transparency of data and reporting, as well as improving efficiencies across the team. But more than anything, this has very much been a year of engagement for the PPF, particularly in relation to the current shape and future opportunities of the pension industry. Our experience and unique position in the industry has meant we can not only drive change via enforcing shareholder rights, but via our service on the DWP’s Taskforce for Social Factors and other initiatives such as the UK Asset Owner Council, we have been able to drive pension funds forward in important areas for stewardship for years to come.”
In ensuring its investments are supportive of a fairer and sustainable future, the PPF engaged through its engagement service provider with 667 companies on specific ESG issues and objectives, achieving significant progress with almost half (49 per cent). The PPF has also seen progress on engagement objectives for 33 per cent of its Climate Watchlist companies, as well as seeing 90 per cent of the Climate Watchlist companies report to disclosure organisation CDP.
As well as co-filing a shareholder resolution at Shell plc in relation to its emissions reduction strategy, the PPF voted on over 44,000 resolutions at 4,080 shareholder meetings from April 2023 to March 2024. In two thirds (66 per cent) of the meetings, the PPF voted at least once against management, demonstrating its commitment to use its voice for positive change. The PPF’s website now carries full disclosure of its proxy voting behaviour, updated quarterly, giving greater transparency to its stakeholders.
Importantly, the report outlines how the PPF advanced its plans to improve reporting across its portfolio and further enhance its monitoring of ESG factors to safeguard its members financial futures. Having introduced a Transition & Sustainable Assets questionnaire to analyse the progress of its assets in the transition to a Net Zero global economy, it received a 100 per cent response rate from its Infrastructure managers, as well as continuing to support the eFront ® ESG Data Service project to collect Private Markets ESG data throughout the year.
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Notes to editors
The PPF received recognition from three awarding bodies in 2023/24:
- IPE Awards 2023 - Named UK Pension Fund of the Year for a second year running. Also highly commended in the Long-Term Investment Strategy, Multi-Employer Pension Fund and Fixed Income categories.
- Corporate Reporting Awards 2023 - Highly commended for the ‘Most effective alignment with TCFD (Taskforce on Climate-Related Financial Disclosures)’ in our Annual Report and Accounts.
- Pensions for Purpose – Pension Fund Awards 2023 - Highly commended in the Paris Alignment Award for Best Climate Change Policy Statement.
About the PPF
The Pension Protection Fund (PPF) is a public corporation, set up by the Pensions Act 2004, and has been protecting members of eligible defined benefit (DB) pension schemes across the UK since 2005. The PPF is run by an independent Board and accountable to Parliament through the Secretary of State for the Department for Work and Pensions. It protects close to 9 million members belonging to more than 5,000 pension schemes. If an employer collapses and its DB pension scheme cannot pay members what they were promised, the PPF pays compensation for their lost pensions. The PPF is funded by a levy charged to eligible schemes, the return on its investments, assets from pension schemes transferred into the PPF, and recoveries from insolvent employers.
The PPF is one of the UK’s largest asset owners with £32.1 billion of assets under management. Separate and additionally to the PPF, it also administers the Fraud Compensation Fund (FCF), the government’s Financial Assistance Scheme (FAS). It looks after nearly 430,000 members across PPF and FAS.
For further press information contact:
PPF Press Office
020 8406 2107
[email protected]
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