The Pension Protection Fund (PPF) has published its new sustainability strategy, which aims to help “catalyse the growth” of a more sustainable pensions industry.

Its new strategy sets out four sustainability goals across responsible investment, diversity and inclusion, community impact, and operations and supply chains.

The pensions lifeboat has achieved net zero for the Scope 1 and 2 emissions of its direct operations, and it will now aim to reach net zero in its operational supply chain and travel emissions by 2035.

It is also aiming to contribute to the global transition to a net-zero economy through its investment portfolio and engagement activities.

Furthermore, the PPF said it was seeking a year-on-year increase in representation across all under-represented groups and to ensure that at least 500 says are volunteered across the organisation to support initiatives identified in its sustainability strategy.

The PPF will report on the progress it makes against its 23/24 key performance indicators.

Its 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 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,” commented PPF chair, Kate Jones.

“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.”

The 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.

Its goals include targets such as ensuring at least 80 per cent of companies on its ‘Climate Watchlist’ for public markets investments are providing disclosures on Scope 1 and 2 emissions.

“We recognise that by far the greatest impact of the PPF lies within our investment portfolio,” Jones added.

“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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