The French Public Service Additional Pension Scheme (ERAFP) has updated its engagement guidelines and voting policy for shareholder meetings ahead of the 2026 proxy season.

The changes were approved by ERAFP’s board at its latest meeting and aim to strengthen the fund’s stewardship approach, particularly in relation to climate, biodiversity and tax transparency.

In 2026, ERAFP will place greater emphasis on tackling climate change, preserving biodiversity and promoting greater tax transparency among multinational companies to address aggressive tax optimisation practices.

The board also decided to tighten voting requirements at company annual general meetings.

ERAFP said it will exercise increased scrutiny when approving company accounts and management decisions, particularly for firms that have been involved in tax controversies.

In addition, the fund will support shareholder resolutions aimed at strengthening measures against aggressive tax optimisation, provided they are sufficiently detailed, well-argued and aligned with its responsible investment principles and engagement guidelines.

Other updates to the guidelines include clarified criteria for electing employee representatives to boards in cases where multiple candidates are standing.

ERAFP will also introduce a minimum shareholding requirement for the renewal of board members’ mandates in order to better align directors’ interests with those of shareholders.

The updated stewardship framework is designed to support ERAFP’s fiduciary responsibility towards the scheme’s 4.5 million public-sector beneficiaries.

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