The FRR expand its efforts towards integrating extra-financial data into its management processes by further engaging with its managers through regular exchanges on ESG issues.
The FRR promote good ESG practices whilst at the same time seeking to reap the financial rewards from the materiality of certain SRI criteria, in other words the proven impact of social responsibility criteria on a company’s performance.
Since 2008, the FRR has had in place a system enabling it to monitor and prevent extra-financial risks that may have an impact not only on its investments but also its reputation. Indeed, risks for the FRR may arise from failure by a company in which it invests to observe universally recognised principles, such as those of the United Nations Global Compact and good governance, but also the international treaties ratified by France.
To avoid legal and regulatory risks, money-laundering risks and reputational risks arising from the FRR’s exposure to various financial centers classified in some cases as "tax havens", the FRR has decided that it should not invest in any sovereign bond or company in a State where such risks exist, or contract with any third party whose registered office is located in such a place.