External managers are investment companies which are mandated by ERAFP to make investments in accordance with its SRI Charter. They have the duty to inform and alert ERAFP about the implementation of the Charter. On a bi-annual basis, the compliance with ERAFP SRI Charter of the investments made on its behalf is discussed during investment committee meetings with investment managers. In order to prepare these meetings, ERAFP recourses to the services of an ESG research provider who conducts on a bi-annual basis an exhaustive review of the portfolio aiming at monitoring the compliance of ERAFP's investment with its SRI requirements.
In addition to ESG performance, ERAFP evaluates engagement activities (dialogue, collaborative initiatives and voting results) led by the external managers.
After the revision of ERAFP's SRI charter in 2016, external managers have also the duty to measure ESG impacts of their portfolio (example: the portfolio's carbon footprint, percentage of women on boards, % of turnover,...) and to monitor controversies.
Our work with service providers on Climate also allows us to monitor asset manager's portfolios environmental performance