Listed Assets

Our approach to impact investing in listed assets, or public assets, is built on five pillars:

Intentionality
Investments should be made with the upfront objective of having a specific positive social or environmental outcome
 

Materiality
We aim to invest in companies where the positive outcomes are of material significance to the beneficiaries, companies or both
 

Additionality
We principally focus on the extent to which a company is making its ‘needed’ products and services more accessible or commercially viable
 

Negative externality
A company’s corporate practices, products and services may significantly undermine the positive impact it is generating elsewhere. Consequently, it is important that negative effects – known as negative    externalities - and a firm’s commitment to address them, are fully considered alongside positive outcomes.
 

Measurability
There needs to be a clear methodology and commitment to measuring and reporting the social and environmental performance of investments and these need to be monitored over time.

How we assess companies

We believe there is no substitute for sustained, in-depth analysis. We aim to identify and track a range of impact metrics or key performance indicators across five categories: products and services; research and development; operations; corporate social responsibility initiatives; and negative externalities.

We integrate environmental, social and governance (ESG) factors into our impact investment process and approach impact investing through the themes outlined in the table below.

We seek to identify companies that are either impact leaders or transitioning companies. Impact leaders are companies which are highest-rated in terms of the net positive societal impact they create, either through their products and services or their corporate practices and operations. They also have a clear strategic intention to contribute to society and helping the environment while generating healthy financial returns.

Transitioning companies are those which exhibit ambition for significant permanent transformation in terms of the positive impact they make, that will also enhance their long-term financial returns. They will usually have plans for one of the following:

  • A dramatic change in the product mix of the company, which may take some time to materialise

  • Significantly reduce the negative externalities provided by their products

  • Dramatically improve the environmental or social outcomes of their operations, setting aggressive targets

For AXA IM, the key is to be explicit and transparent in what types of categories investee companies fall into and be able to clearly explain why they belong in an impact investment portfolio. Our assessment framework is designed to analyse companies so we can identify opportunities for a range of impact investing strategies in listed assets.

This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date. All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document. Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.