The board of directors of France’s Établissement de Retraite additionnelle de la Fonction publique (ERAFP) has updated its voting policy at annual general meetings (AGMs) and engagement guidelines.

In 2025, ERAFP will continue to focus on the fight against climate change, by strengthening the promotion of strategies in line with the Paris Agreement. It will also focus on biodiversity and on the fight against aggressive tax optimisation practices by calling for greater transparency on the part of multinationals.

Following an in-depth review of the existing policy, the board of directors decided to strengthen some of its positions and to incorporate a number of new issues. This includes the introduction of a criterion favouring the presence of employee representatives on boards of directors, by sanctioning a potential vote against the chairman of the appointments committee.

This voting instruction will also apply in the event of failure to comply with the targets for the proportion of women and men on boards and for the independence of directors, thereby reinforcing these requirements.

Furthermore, ERAFP now has a criterion for making a vote in favour of a share buyback resolution, conditional on it having no impact on the company's ability to comply with a climate trajectory compatible with the Paris Agreements.

It has also strengthened its criteria for analysing Say on Climate resolutions, with the addition of two criteria relating to the publication of scope 3 emissions and consideration of just transition.

However, its policy now includes the recommendation of a negative vote on a Say on Climate resolution if the company is not aligned with a 1.5°C trajectory (unless the proposed strategy constitutes a major step forward or a significant engagement is conducted with the company and this shows significant progress).

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