The UK’s £31.2bn (€36bn) defined benefit lifeboat fund has published its first sustainability report.
It combines three elements of the Pension Protection Fund’s (PPF) sustainability reporting: its UK Stewardship Code submission to the supervisor, its climate change report that aligns with the Task Force for Climate-related Financial Disclosures (TCFD) recommendations, and reporting about sustainability at the PPF as an organisation.
Previously, the PPF reported on its responsible investment and climate change activities in a separate publication.
“This single document aims to provide an integrated and comprehensive view of the PPF’s approach, activities and outcomes to advance sustainability both in our investments and our operations,” wrote Kate Jones, chair of the PPF.
Key achievements during the year, according to the new report, include “significant work to ensure potential external investment managers meet our expected standards and worked with several to develop their stewardship processes”.
In a Q&A in the report, Barry Kenneth, chief investment officer, said the PPF had formalised its quarterly stewardship reviews for assessing external managers, and that these reviews were now a core part of the PPF’s oversight process.
The asset owner also carried out a survey of all its external investment private markets managers to understand their climate transition strategies and expanded its transition and sustainable assets framework to include private equity, real estate and UK private credit for the first year, along with infrastructure for the second year.
Kenneth said that in private markets, the PPF was pushing for greater transparency, better data quality and more credible transition plans.
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