AXA IM’s Impact Investing strategy acquires ClimateSeed
- AXA IM acquires ClimateSeed through its Impact Investing Strategy managed by AXA IM Alts, from BNP Paribas Securities Services
- The investment complements AXA IM’s portfolio of climate focused solutions, including investments in nature-based projects
- ClimateSeed will continue to act as a marketplace for carbon reduction projects, from carbon credit generation to its sale
- As part of its engagement against climate change, BNP Paribas continues to provide a full range of carbon offsetting solutions to its corporate and institutional clients, from standard carbon offsets to tailor-made solutions. The bank will continue to propose ClimateSeed through its distribution network
AXA IM, by the way of AXA IM Alts, a global leader in alternative investments with c. €162 billion of assets under management 1 , has today announced the acquisition 2 of ClimateSeed, the voluntary carbon off-setting platform. The investment in ClimateSeed has been made through the Impact Investing Strategy, adding to its existing investment portfolio of climate focused solutions.
Launched in 2018, ClimateSeed acts as an innovative marketplace, connecting businesses seeking to offset their carbon emissions with project developers offering carbon reduction projects with high environmental and social benefits. ClimateSeed’s portfolio includes 36 projects in 24 countries with an aggregated capacity of over four million verified carbon credits 3 .
AXA IM investment in ClimateSeed aligns with the Impact Investing Strategy’s mission to catalyse solutions that combat climate change and preserve biodiversity. ClimateSeed complements the strategy‘s diversified portfolio of nature-based projects facilitating carbon avoidance and sequestration.
Through the investment, AXA IM will fund ClimateSeed’s operating activities, support its development and will seek to broaden its project portfolio through additional investments.
BNP Paribas will continue to support ClimateSeed, proposing the platform to its clients through its distribution network. The bank also offers tailored carbon offsetting solutions to its clients as part of its wider carbon solutions offering and its overall engagement against climate change.
Marco Morelli, Executive Chairman of AXA IM and a Member of AXA’s Management Committee, commented: “The fight against climate change is part of our overall Responsible Investment strategy at AXA Group, both at a corporate level and in terms of our broader approach to our investment practices to ensure that we meet the Group’s ambitious climate targets in line with the Paris Agreement. This acquisition enhances AXA IM’s capacity to bring solutions to perfectly align our investments with AXA’s strategy and goals as well as answer the needs of our third-party clients. As corporates and governments globally embark on net-zero transition plans, the market for carbon credits is expected to significantly expand. Our investment in ClimateSeed is further evidence of our commitment to expand and scale up the range of activities that combat climate change and preserve biodiversity.”
Antoine Sire, Head of Company Engagement at BNP Paribas, said: “We are very proud to have developed strong and innovative platforms for the voluntary carbon offsetting markets. AXA IM will now support ClimateSeed through the next stage of its development. BNP Paribas is as engaged as ever in its fight against climate change and continues to propose ClimateSeed through its network while developing its first-class carbon offsetting solutions for its corporate and institutional clients.”
Sebastien Nunes, CEO of ClimateSeed, said: “We recognise the importance of carbon reduction projects as a key role in fighting climate change in line with the IPCC ambitions and reaching global carbon neutrality. We are honoured to take part in this new development phase for ClimateSeed with AXA IM and are very thankful to BNP Paribas for believing in us as well as their continued support. We have the ambition to generate the maximum number of positive social, environmental impacts that can benefit the climate, biodiversity, and local communities. This decade is crucial to restore the planet and reverse climate change.”
- Source: AXA IM Alts unaudited data, as of March 2021
- The acquisition represents 100% of the share capital of ClimateSeed
- Source: ClimateSeed Platform project portfolio on June 2021