Our approach and offering
Our approach and offering
At AXA Investment Managers we maintain a two-tiered approach to RI and impact investing.
At AXA IM, we integrate sustainability risks within the research and investment process for all assets. Our approach to sustainability risks is derived from the deep integration of ESG (environmental, social and governance) criteria into that process. Our framework relies notably on:
Sectorial and normative exclusions policies
These aim to systematically address the most severe sustainability risks into the investment decision-making process.
Proprietary ESG scoring methodologies
The use of ESG scores in the investment process enables us to focus on assets with an overall better ESG performance and therefore likely lower sustainability risks.
We seek to protect client investments by raising issues of concern that may have a material impact on investor value over the longer term. Our dialogue with companies and Sovereigns aims to reduce investment risk, enhance returns and drive positive impacts for society and the environment.
This framework pushes us to consider how sustainability impacts on the development, performance or position of a company, and how it might have tangible effects on financial value in a broad sense (financial materiality). It also helps us to assess the external impacts of an asset’s activities on ESG factors (ESG materiality).
We aim to leverage this framework to deliver sustainable long-term outcomes for our clients through a comprehensive range of strategies which have a stronger focus on sustainability. We split our offering into two parts.
These strategies use data and research, exclusions and proactive stewardship to help build ESG into the investment process, and promote environmental and social characteristics in our approach. As part of this we may exclude issuers with the lowest ESG scores as well as those which do not follow what we consider good governance practices. We believe that this level of ESG integration can potentially reduce risk to help us achieve better risk-adjusted returns.
We consider strategies classed as ESG Integrated to meet the requirements of Article 8 of the SFDR regulation.
Within this group, strategies in the ESG Integrated+ category go a step further by targeting an ESG score higher than that of the benchmark or universe.
The ACT range is our most focused ESG offering. Strategies in this category are designed to help clients target specific sustainability goals around issues such as climate change and inequality while continuing to adopt the reinforced approach to sustainability risks and good governance practices as described above. Alongside financial returns, these strategies target positive outcomes related to ESG criteria and/or to the United Nations Sustainable Development Goals (UN SDGs). Investment decisions are guided by both the financial and impact goals.
We consider strategies in the ACT range to meet the requirements of Article 9 of the SFDR regulation. Within this range are two categories:
- Sustainable strategies aim to embed ESG into the portfolio construction process, in an even more material and intentional manner. Every strategy in this group targets one or more specific sustainable objectives related to the ESG pillars (for example, carbon footprint) to further refine the investment universe.
- Listed Impact strategies incorporate the demands of the Sustainable category but will seek out businesses and projects that can potentially have an intentional, positive, measurable and sustainable impact on society and/or the environment. These strategies will also report against impact criteria aligned to specific UN SDGs.
This product categorisation framework applies to open funds in liquid asset classes. Specific approaches may apply for segregated accounts or Alternative strategies.
The reference to SFDR product categories is provided based on the basis of the European Directive (EU) 2019/2088 on the sustainability-related disclosures in the financial services sector (“SFDR Regulation”) and state of knowledge as of 10 March 2021. As of today the SFDR-related regulatory technical standards are not yet finalised and enforced. The product categorisation shall be re-assessed once such regulatory technical standards are completed and may evolve.
Our Responsible Investment policy
Fulfilling our ambition of consistently satisfying our clients’ needs worldwide requires continued efforts to understand and anticipate changing factors which impact financial markets and our customers’ objectives.
Article 173 - TCFD Combined Report
Article 173(VI) of the Act effectively introduced the world’s first regulatory framework requiring financial organisations to make information available to clients on their management of climate-related risk and, more broadly, on the incorporation of environmental, social and governance (ESG) parameters into their investment policy.