LIST OF COLLABORATIVE INITIATIVES SUPPORTED BY THE FRR The FRR continued its involvement in several collaborative initiatives in 2016, and joined two new ones.

Managing risks linked to the supply chain in the textile industry PRI

Despite the efforts made by companies within the sector, poor working conditions and viola- tions of human rights are still recurring prob- lems in the supply chain. Realising this, seven French institutional investors, including the FRR, decided to launch a joint initiative in 2014 organised by Mirova for managing risks relating to the supply chain in the textile industry.

The main aims of this were to improve transpar- ency, map social risks, develop long-term rela- tions with suppliers, and participate in sector initiatives.

Climate lobbying PRI/IIGCC

In spite of their claims to support climate poli- cies, numerous listed companies are indirectly involved in lobbying against these very policies through their professional associations. This dialogue focuses on this inconsistency and aims to improve the transparency of listed compa- nies lobbying activities by demanding greater transparency from energy companies in their lobbying on issues related to global warming. This initiative has been backed by 50 investors, representing EUR 4.4 trillion in assets under management (IIGCC Initiative on EU Company Climate Lobbying).

Human rights in the extractive sector PRI

This project seeks to understand how policies relating to human rights are applied by extrac- tive companies, especially in the context of part- nerships with local companies or governments.

Extractive Industries Transparency Initiative (EITI)

This initiative seeks to increase the transpar- ency and responsibility of companies operating in extractive industries, by checking and pub- lishing all payments made by companies, as well as all income received by governments, as a result of mineral, oil and gas extraction. In sup- porting the EITI, the FRR invites all companies directly or indirectly concerned by the above,

and in which it holds shares, to contribute. It also encourages those companies already com- mitted to supporting the initiative to play an active role in its implementation.

Statement on ESG in credit ratings (April 2016)

Alongside six rating agencies, including S&P and Moody s, and 100 international investors repre- senting assets of USD 16 trillion, the FRR signed a joint declaration on more systematic consid- eration of ESG criteria in assessing issuers. This is an important stage in the integration of ESG factors in asset management.

Global Investor Letter to the G20 (July 2016)

Along with 129 institutional investors, the FRR signed a letter addressed to the G20 leaders before a summit held in China on 4 and 5 Sep- tember 2016. This letter invited the G20 to adopt measures for combatting climate change.

Committed staff

Olivier Rousseau, member of the Management Board, sits on the steering committee of the Portfolio Decarbonization Coalition.

Anne-Marie Jourdan, the FRR s Senior Legal Counsel, is a member of the International Cor- porate Governance Network board of governors.

NON-FINANCIAL RISKS TO THE PORTFOLIO In 2008, the FRR adopted a system to monitor and prevent non-financial risks that could have an impact not just on its investments but also its reputation. Risks to the FRR may arise from companies in which it invests failing to comply with universally recognised principles, such as those of the United States Global Compact and of good governance, as well as international conventions ratified by France, in particular the Ottawa2 and Oslo3 Conventions.

2 Convention on the prohibition of the use, storage, production and transfer of anti-personnel mines and on their destruction.

3 Convention on the prohibition of the use, storage, production and transfer of cluster bombs and on their destruction.