17.01.2024
- New strategy outlines four sustainability goals across Responsible Investment, Diversity & Inclusion, community impact, and operations and supply chains.
- Targets include:
- Having achieved Net Zero for Scope 1 and 2 for its direct operations, the Fund will aim to reach Net Zero in its operational supply chain and travel emissions by 2035 or sooner.
- Contributing to the global transition to Net Zero through its investment portfolio and engagement activities.
- Year-on-year, achieving an increase in representation across all under-represented groups.
- Ensuring that at least 500 days are volunteered across the organisation to support initiatives identified in sustainability strategy.
- PPF will report on the progress made against its 23/24 KPIs on its website.
The Pension Protection Fund (PPF) has today published its new sustainability strategy, with an ambition to help “catalyse the growth of a more sustainable pensions industry.”
The Fund – which protects 10 million DB scheme members in the UK – has created a holistic sustainability strategy which brings together key elements of the way it approaches Responsible Investment, Diversity & Inclusion and community impact. The strategy is underpinned by the Five Capitals framework for sustainability, the PPF’s organisational values and an assessment of its most material ESG risks as a business.
Kate Jones, PPF Chair, said: “As climate change, social inequality, and corporate purpose receive unprecedented global attention, it’s important that we consider material ESG risk and opportunities not only in our investment decisions, but also across all our activities and decisions as a business. We believe that by embedding sustainability in our business model, we will enhance value for our stakeholders and surrounding communities.
“We are proud to launch our first sustainability strategy today which sets out four key outcomes-focused sustainability goals for our organisation in areas we believe we can make a real difference. Our ambition is to catalyse the growth of a more sustainable pensions industry and lead by example by moving the needle on Diversity & Inclusion and playing an active role in the communities we work in.”
PPF’s four sustainability goals are to demonstrate excellence in responsible investment, ensure effective stakeholder engagement with integrity and respect, champion collaboration and leading by example, and be accountable for minimising its own environmental impacts.
The goals include quantifiable targets, such as ensuring at least 80 per cent of companies in its Climate Watchlist for public markets investments are providing valuable disclosures on Scope 1 and 2 emissions. The Fund originally built its Responsible Investment strategy to enhance the long-term value of its investments by managing environmental, social and governance (ESG) risks and seizing opportunities.
Kate Jones added: “We recognise that by far the greatest impact of the PPF lies within our investment portfolio. As a major part of our sustainability strategy, we will continue to incorporate ESG and climate-related risks and opportunities into our investment process and stewardship activities, striving to demonstrate excellence in responsible investment. We will also leverage opportunities to collaborate and lead by example within the pension fund and asset management communities.”
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Notes to Editors
- PPF’s Sustainability Goals are:
- Demonstrating excellence in responsible investment
- Ensuring effective stakeholder engagement with integrity and respect
- Championing collaboration and leading by example
- Being accountable for minimising our own environmental impacts
- Demonstrating excellence in responsible investment
- PPF’s three priorities under its Responsible Investment strategy are climate change, stewardship and transparency.
- PPF embeds material ESG considerations across all its investments, as well as expecting the same from its external managers, from selection through to ongoing monitoring and reporting.
- PPF has seen significant progress in its managers’ own ESG practices, as evidenced by the growth over the last few years in the number of its external managers who have become PRI signatories (from 70 per cent in 2020 to 90 per cent at the end of 2022).
- PPF also engages with underlying issuers and use its voting powers to advocate for strong ESG and climate-related practices.
- Ensuring effective stakeholder engagement with integrity & respect
- Effectively use range of communication channels to engage employees.
- Promote a ‘speak up’ culture, where employees are encouraged to share views and ideas, raise concerns and give feedback. PPF provides 25 channels to communicate with the organisation.
- Build two-way communication and maintain strong relationships with external stakeholders including our members, levy payers, parliamentarians, regulators, trade bodies and industry groups.
- Adopt a new Community Impact approach, replacing our previous CSR activities, and build partnerships and volunteer with industry and local organisations.
- Championing collaboration and leading by example
- Build on the progress we’ve already made in D&I, by extending beyond current internal focus to considering supply chain and stakeholders, through procurement activities and ongoing supplier relationships, Community Impact work and engagement with industry.
- Being accountable for minimising our own environmental impacts
- Operate in a manner which is consistent with the Paris Agreement by minimising our own environmental impacts.
- Aim to reduce greenhouse gas (GHG) emissions from our building management, supply chain, technology and travel activities.
- 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.
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 10 million members belonging to more than 5,200 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 £39 billion of assets under management. It also administers the Fraud Compensation Fund (FCF), the Government’s Financial Assistance Scheme (FAS) and across both the PPF and FAS looks after nearly 440,000 members.
For further press information contact:
PPF Press Office
020 8406 2107
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