PPF has improved investment reporting and hit early milestones
The report is designed to promote transparency of climate-related financial information and give a better understanding of the impact climate change has on the fund.
This includes all risks and opportunities presented by rising temperatures, climate-related policy, and emerging technologies.
Some of the highlights include;
- 11% of the fund is now allocated to investments categorised as ‘aligned’ with net zero, up from 4% in 2020’s baseline assessment;
- the percentage of equities portfolio allocated to companies who have set or committed to a science-based target increased by a third to 43% from 2021;
- 100% of the electricity supply for its offices is backed by renewable UK sources;
- it has reduced energy consumption from its data centres by 59%.
Claire Curtin, head of ESG and sustainability, said: “We believe placing sustainability at the heart of our activities is essential to mitigating some of the material ESG risks we face.”
“We believe placing sustainability at the heart of our activities is essential to mitigating some of the material ESG risks we face.”
Claire Curtin
“Our climate change report helps to build understanding of our strategy and demonstrates how the PPF is trying to use its influence as a force for good.”
Building better market data
The report shows how the PPF has achieved more high-quality disclosure from issuers, driven climate management beyond listed equities and is moving for better alignment with the goals of the Paris Agreement.
More than four out of five (84%) of portfolio companies in the PPF’s climate watchlist now report carbon emissions data, and 37% of private companies reporting ESG data through a private markets ESG reporting pilot.
The PPF’s recently published sustainability strategy combines key elements of responsible investment, diversity & inclusion and community impact, as well as considering how to reduce its own operational impacts.
It 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.
Early achievements
The PPF has achieved net zero for Scope 1 and Scope 2 market-based emissions for its direct operations and seen a 34% reduction in its Scope 2 location-based emissions from its baseline. It aims to reach net zero in its operational supply chain by 2035 or sooner.
Curtin added: “We have set ourselves high standards on climate change and responsible investment.
“For our investments, we seek to contribute to the global transition to net zero through our portfolio and engagement activities.”
In 2022, the PPF was recognised for its efforts to be a leading responsible investor and the progress it has made to improve access to ESG-related data, advance ESG practices among our external managers and support opportunities to deploy capital for positive social and environmental impact.
