Taking sustainability criteria into account in its management decisions is part of the FRR’s DNA. Since 2001, the FRR’s founding documents have specified that ‘The Executive Board shall report regularly to the Supervisory Board and shall, in particular, describe how the general guidelines of the investment policy have taken social, environmental and ethical considerations into account’.

The Supervisory Board has required a strong commitment from the FRR in the area of responsible investment: as a public investor and an instrument of solidarity between generations, the FRR has a duty to set an example by taking environmental, social and governance (ESG) factors into account in its management.

This concern is reflected in an SRI strategy and a desire to influence the companies in which the FRR invests through numerous engagement initiatives and the adoption of voting guidelines at general meetings.

The FRR’s current five-year responsible investment strategy, adopted by the Supervisory Board on the recommendation of the Executive Board, is the fifth since the FRR was created. In line with previous responsible investment strategies, it pursues the ambition of adopting the most proactive standards and is a continuation of the commitments made by the FRR, notably as a founding member of the Principles for Responsible Investment and a member of the Net Zero Asset Owners Alliance.

The FRR’s strategy is structured around three priority areas:
1. Promoting energy and ecological transition
2. Promoting social equity
3. Preserving biodiversity

These priority areas are in line with the United Nations Sustainable Development Goals (SDGs), in particular the following goals:
– Gender equality – Affordable and clean energy
– Reduced inequalities
– Climate action
– Life below water
– Life on land

To complement its activities beyond investment, the FRR can promote responsible investment within the financial management ecosystem, whether among managers, FRR employees, index providers or market organisations.

The FRR pursues its engagement strategy with companies to encourage them to adopt ESG best practices. The FRR aims to encourage the companies in which it invests to mitigate their main negative impacts on the environment and all stakeholders.

The FRR conducts a comprehensive annual ESG & Controversies analysis, as well as a climate and environmental assessment of its investment portfolio. Following a tender process launched in 2023, the FRR selected Morningstar France Fund Information and S&P Global Market Intelligence LLC to conduct these analyses.