As a member of the Net Zero Asset Owner Alliance (NZAOA) since 2019, the FRR is committed to aligning its investment portfolios with a trajectory compatible with the goal of net-zero emissions by 2050. It sets intermediate decarbonization targets, strengthens dialogue with companies and asset managers, and supports the transition to a low-carbon economy in line with the Paris Agreement.

As a reminder, the FRR aims to accelerate the energy transition, expand accountability requirements in investments, and engage with the financial management ecosystem to improve practices. As a responsible investor, the FRR is committed to having exclusion, voting, and engagement policies aligned with its mission as a responsible investor and in service of decarbonization.

The FRR’s progress in decarbonizing its portfolio is available in the FRR’s annual sustainability report.

The FRR’s exclusion policy on fossil fuels sets clear exclusion thresholds, prohibits new financing and investments in thermal coal and unconventional fossil fuel projects, and provides a timeline for the complete phase-out of the most climate- and environmentally damaging activities, in accordance with Article 29 of the Energy-Climate Law.

Thus, the FRR implements a policy to phase out thermal coal, a gradual exit from unconventional hydrocarbons, and a framework policy for conventional oil and gas.

The FRR is committed to engaging with companies to encourage them to adopt necessary measures to reduce their climate impact, particularly by lowering their carbon footprint and fossil fuel reserves. This engagement can be carried out either directly by the FRR or through one of its asset managers.