ERAFP updates shareholder engagement guidelines to reflect new SRI charter
Written by Natalie Tuck
French public service pension fund ERAFP has updated its shareholder engagement guidelines and its policy for voting in general meetings to reflect the changes to its SRI charter.
While continuing to focus on collaborative initiatives covering issues such as the fight against climate change, combating aggressive tax optimisation and preventing employee-related risks in the supply chain, under its new SRI charter’s provisions on monitoring controversial matters, ERAFP will now require its management companies to initiate dialogue with companies involved in proven violations of international standards.
In addition, ERAFP has affirmed its responsible voting policy in a changing legislative environment.
With respect to its voting policy, ERAFP will continue to focus on a number of key issues, which will be given priority in talks with issuers regarding the next general meetings season.
These include the transparency of companies’ business and financial situations. In 2017, ERAFP is widening its scope and it will no longer focus solely on financial sector companies’ country-by-country financial reporting, but will also cover, on a trial basis, the reporting of all companies with revenues of more than €750m.
It will work to promote the principles of transparency, equity and moderation in determining executive remuneration. In 2017, ERAFP expects all publicly-traded companies to implement voting on the remuneration of corporate officers. In addition, ERAFP will give careful consideration to the remuneration committee’s responses following any disputes arising from such votes.
Furthermore, ERAFP wants to increase the proportion of women on boards. The fund increase the minimum threshold for women’s representation from 30 per cent to 35 per cent in 2017 and now wants to increase it further to 35 per cent to 40 per cent, as required by the Copé-Zimmermann law.