Best in class at ERAFP


Best in class at ERAFP

The Charter uses a best in class approach reflected in the process through quantitative rules that define the scope of eligible investments. These rules are detailed for each asset class in order to promote uniform progress. Generally speaking this means:
  • not excluding certain business sectors but promoting the most responsible issuers within each sector and, more generally, within comparable issuer groups;
  • assigning value to observed progress;
  • monitoring and working with issuers that have a commitment to continuous progress.
For an investor of ERAFP's size, that wishes to adopt a consistent, standardised method across all the asset classes that it invests in, best in class seems the most coherent approach:
  • it applies not only to all the Scheme’s investments but also to all investment phases, from the stock-picking process to monitoring the securities or assets held following the investment;
  • it is based on a broad range of values applied across all investments, instead of a large number of theme-specific criteria;
  • it factors in links between different challenges and among different issuers instead of addressing each situation separately.
By contrast, it could be seen as illogical to exclude certain economic sectors in their entirety when the portfolio includes issuers from other sectors or other asset classes with close ties to the excluded sectors.
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