As a signatory to the Principles for Responsible Investment (UN PRI) since 2006, the FRR is committed to integrating Environmental, Social, and Governance (ESG) criteria into all its investment decisions and portfolio management. The FRR actively promotes sustainable finance by engaging in dialogue with companies and asset managers to encourage responsible and transparent practices.

FRR’s exclusion policy applies to both public and private markets assets delegated to its external managers. While the FRR strictly and regularly monitors compliance with its exclusion policy by its external managers, the managers are responsible for its implementation. In the case of mutual funds and ETFs, the FRR engages in dialogue with the manager and, in the event of non-compliance, may divest from the fund.

1. Positions and Exclusion Policy on Controversial Weapons

Each year, the FRR publishes an exclusion list approved by the Responsible Investment Committee of its Supervisory Board. This list is updated during the first half of each year. Its methodology is designed to identify companies involved in the use, storage, production, or transfer of anti-personnel mines, cluster munitions, biological weapons, and chemical weapons, which are excluded from FRR’s investment portfolio.

2. Positions and Exclusion Policy on the Tobacco Sector

Financial instruments issued by tobacco-producing companies are excluded from FRR’s investment portfolio.

3. Positions and Exclusion Policy on Fossil Fuels

The FRR implements a policy of phasing out thermal coal, a gradual exit from unconventional fossil fuels, and a framework for conventional oil and gas.

4. Other Exclusions

FRR may also, on an exceptional basis, exclude other companies for serious, proven, and repeated violations of global standards referenced in FRR’s responsible investment strategy (as published and updated on FRR’s website).