France’s Fonds de Réserve pour les Retraites (FRR) has launched a new €1.75bn tender for equity index replication mandates aligned with the Paris Agreement, reinforcing its responsible investment requirements.

The FRR confirmed it is renewing its call for tenders for optimised equity index replication mandates, building on its previous exercise conducted in 2021.

The indicative target size of the mandates is €1.75bn, and the tender seeks asset managers capable of replicating equity benchmarks while limiting bias and operating within tracking error constraints.

As part of the process, the FRR said it will require “notable, continuous and measurable” improvements in environmental, social and governance (ESG) characteristics over the life of the mandates.

This includes reductions in greenhouse gas emissions relative to the reference index, as well as measures to support biodiversity preservation.

The tender also places greater emphasis on integrating forward-looking metrics, such as green capital expenditure, to better anticipate structural changes in the real economy.

In addition, participating asset managers will be expected to demonstrate strong shareholder engagement practices.

The FRR said the move underlines the increasingly prominent role ESG criteria play across its portfolio, and reflects its commitment to supporting the evolution of market practices towards more responsible, transparent and resilient finance.

The contracts will run for an initial five-year period, with the option of a one-year extension.

Interested parties have until 12:00 (Paris time) on 9 February 2026 to submit bids, in line with the consultation rules.

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