This report shows public data only. Is this your organisation? If so, login here to view your full report.

ERAFP - Etablissement de Retraite Additionnelle de la Fonction Publique Pension Scheme

PRI reporting framework 2020

You are in Organisational Overview » Asset class implementation gateway indicators

Asset class implementation gateway indicators

OO 10. Active ownership practices for listed assets

10.1. Select the active ownership activities your organisation implemented in the reporting year.

Listed equity – engagement

Listed equity – voting

Fixed income SSA – engagement

Fixed income Corporate (financial) – engagement

Fixed income Corporate (non-financial) – engagement


OO 11. ESG incorporation practices for all assets

11.1. Select the internally managed asset classes in which you addressed ESG incorporation into your investment decisions and/or your active ownership practices (during the reporting year).

Fixed income - SSA

Cash

Select the externally managed assets classes in which you and/or your investment consultants address ESG incorporation in your external manager selection, appointment and/or monitoring processes.
Asset class
ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes
Listed equity

Listed equity - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Fixed income - corporate (financial)

Fixed income - corporate (financial) - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Fixed income - corporate (non-financial)

Fixed income - corporate (non-financial) - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Private equity

Private equity - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Property

Property - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Infrastructure

Infrastructure - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Other (1)

Other (1) - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

11.4. Provide a brief description of how your organisation includes responsible investment considerations in your investment manager selection, appointment and monitoring processes.

As a public sector entity, ERAFP can only select providers such as asset managers through public Request for Proposal (RfP) processes.

This selection process comprises of two main stages:

1/ ERAFP first strives to assess the candidates' capabilities (financial and IT capabilities, human resources, experience, etc.) to meet ERAFP's requirements, notably in the area of SRI. At that stage, the ESG elements which are taken into account include:

- SRI policies and formalization of commitments

- the size and experience of the team in charge of SRI analysis and management,

- the quality and coverage of external ESG research sources,

- IT tools that have been developed in order to combine the different external and internal ESG databases,

- engagement, voting capabilities and measures of ESG's impacts.

2/ the second stage of the selection process aims at assessing the quality of the proposals made by the candidates who have passed the first stage. With regard to SRI, ERAFP focuses on the investment process proposed by the candidate (How will ERAFP' SRI issuer selection criteria be integrated? What kind of adaptations to the standard process will be necessary to respect ERAFP best in class approach? What are the innovations proposed?).

Overall, the weight of ESG criteria in the process to select asset managers is about 12%.

Of note, ERAFP's SRI policy is part of the mandates signed with asset managers and is thus contractually binding.

During the appointment, ERAFP formalizes its expectations on ESG to each asset managers. For most of its mandates, it requests to compare the ESG performance of the ERAFP's portfolio with a benchmark. ERAFP expects a better ESG performance for its portfolio than the benchmark. ERAFP also focuses on ESG progress of its portfolio. Asset managers have to lead engagement with issuers, especially with those suspected of breaches of certain international standards or non-compliance with environmental or socially responsible principles, to encourage them to adopt best ESG practices. Finally, ERAFP send a service order listing the SRI reporting requested to each asset manager monthly, semi-annually and annually. 

With regard to monitoring, the investment companies which have been selected to manage ERAFP's segregated mandates provide us with thorough half-yearly reports on the implementation and the effects of the ESG processes defined on the basis of ERAFP SRI Charter. At the same time, our ESG research provider produces an independent report, covering each portfolio individually. This enables us to engage a meaningful dialogue with the asset managers, aimed at maintaining a process of continuous improvement of the ESG policy's implementation. We also receive monthly SRI ratings.


OO 12. Modules and sections required to complete

12.1. Below are all applicable modules or sections you may report on. Those which are mandatory to report (asset classes representing 10% or more of your AUM) are already ticked and read-only. Those which are voluntary to report on can be opted into by ticking the box.

Core modules

RI implementation directly or via service providers

Direct - Listed Equity active ownership

Direct - Fixed Income

RI implementation via external managers

Indirect - Selection, Appointment and Monitoring of External Managers

Closing module

12.2. Additional information. [Optional]


Top