Sovereign, municipal and supranational bonds are managed in-house. ERAFP's investment team is thus directly in charge of the implementation of the SRI policy defined by the Board. This approach is based on an ESG rating framework comprising ERAFP's five values (Human rights, Social progress, Employee democracy, Environment, Governance and transparency) which are declined into about forty criteria adapted to the specificities of countries and local governments. ERAFP cannot invest in issuers with an ESG score below average (50/100).
Aside from the integration of best in class ESG criteria the Board of Directors decided to add three specific exclusion criteria for sovereign bonds. Are excluded from the investment universe, countries which:
- have not abolished the death penalty,
- practice torture,
- have recourse to child soldiers.
In 2016, ERAFP added in its SRI Charter that it favours States that have ratified the International Labor Organisation's fundamental conventions.