ERAFP updates its engagement guidelines by incorporating new voting issues for 2025

Paris, January 21, 2025 – At its most recent meeting, the ERAFP Board of Directors updated its engagement guidelines and its voting policy for general meetings.

In 2025, ERAFP will continue to focus its engagement efforts on combating climate change—specifically by promoting strategies aligned with the Paris Agreement—as well as on biodiversity and tackling aggressive tax planning practices by demanding greater transparency from multinational corporations.

Regarding voting at general meetings, following a thorough review of its existing policy, the Board of Directors has decided to strengthen certain positions and incorporate several new issues, such as:

• introducing a criterion favoring the presence of employee representatives on boards of directors, with potential opposition to the re-election of the nomination committee chair if this is not met; this voting instruction will also apply—thereby reinforcing requirements—if targets for gender diversity and board independence are not achieved;
• making support for share buyback resolutions conditional on the buyback having no negative impact on the company’s ability to adhere to a climate trajectory compatible with the Paris Agreement;
• strengthening the analysis criteria for Say on Climate resolutions by adding two new criteria regarding the disclosure of Scope 3 emissions and the consideration of a "just transition";
• recommending a vote against Say on Climate resolutions if the company is not aligned with a 1.5°C trajectory (unless the proposed strategy represents a major step forward or significant engagement with the company is underway and showing notable progress).