Shareholder engagement

Until 2012, ERAFP's SRI approach was based mainly on the application of environmental, social and governance (ESG) criteria to the selection of portfolio investments. In December 2012, the process was supplemented by the adoption of shareholder engagement guidelines: these aim to define a framework for action by ERAFP (and/or its representatives) as an active shareholder. This re-echoes the affirmation of the SRI Charter: "ERAFP is determined to support, on a long-term basis, those organisations in which it has decided to invest, by exercising its responsibilities as shareholder or stakeholder in such a way as to sustainably promote, within these entities, practices that respect the values it supports.”

This shareholder engagement policy is based on:

  • ERAFP being involved in collaborative engagement initiatives, in order to benefit from the experience of other investors and the positive effects of pooling resources and managed assets.  
  • A general meeting voting policy focused on promoting the interests of long-term shareholders: dividend sustainability, consideration of social and environmental criteria in executive pay policies, capping of executive pay (in particular short-term variable remuneration), etc. 

This voting policy is updated every year so as to build on the lessons learned during each general meetings season and so constantly increase the relevance of the new voting policy.
While the equity asset management companies implement the policy on its behalf, ERAFP ensures that it is correctly implemented and that positions expressed are consistent by coordinating voting by the asset managers for a given number of companies. In 2017, this sample comprised 40 major French companies and 20 major international companies, compared to a total of 40 companies in 2013.
A summary of voting results at the general meetings of companies specifically monitored by ERAFP in 2016 is available below in the relevant documents.