The Pension Protection Fund (PPF) has unveiled an enhanced Responsible Investment (RI) framework which reinforces its commitment to responsible and sustainable investment.
Executive Director of Financial Risk, Martin Clarke said: “Over the last three years we have seen a vast improvement in the way that our external managers are adopting RI. Thirty per cent of our managers are now rated higher on their commitment to RI than when we first hired them.
“With our investment portfolio expected to rise to £22 billion in the next three years, our commitment to responsible and sustainable ownership becomes even more important. That is why we have reinforced our framework to better help us define our new voting policies, ensure great accountability and vastly improve the way in which we monitor our external managers."
Along with its voting and engagement services supplier, Hermes EOS, the PPF will exercise closer scrutiny and oversight of the stewardship activities conducted on its behalf.
The new Statement of Stewardship Principles - which formally sets out how the PPF acts as a responsible owner of the companies in which it owns listed shares - has been published on the Investment pages of the PPF’s website.
The website also includes details of the PPF’s new and unique approach to rating its external managers for their commitment to responsible investment. Fully integrated into the PPF’s wider performance monitoring framework and covering the entire range of asset classes in which the Fund invests, it is based on five performance areas: alignment, ESG integration, stewardship, resources and reporting.
Further details can be found on the Responsible Investment pages of the PPF’s website.
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