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Wednesday 11 December 2019

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France’s ERAFP aligns SRI strategy with Paris Agreement

Written by Natalie Tuck
14/11/19

The French Public Service Additional Pension Scheme (ERAFP) has announced that it is aligning its socially responsible investing (SRI) policy with the objectives of the Paris Agreement.

As part of this, it is accelerating its withdrawal from the coal industry to ensure that its investment activities are consistent with its commitment to a decarbonised economy.

“Limiting a company’s exposure to thermal coal-related activities today is a powerful way to limit greenhouse gas emissions, while providing scope for opportunities to contribute to the energy transition,” the fund said.

Based on this observation, ERAFP is adapting its best-in-class policy by requiring companies in sectors with high energy transition stakes to adopt strategies consistent with the objectives of the Paris Agreement and by withdrawing from those that fail to do so and whose thermal coal-related activities exceed 10 per cent of their turnover.

At the same time, in order to comply with the timetable for phasing out coal completely worldwide in line with the Paris Agreement, ERAFP will step up its engagement actions with companies remaining in its portfolio, in particular under Climate Action100+, to redirect their strategies and activities towards a decarbonised economy.

It will also seek to ensure a fair transition, taking into account the social aspects of business restructuring in these sectors, and will encourage companies to take initiatives in this direction.



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