Our approach and offering
Our approach and offering
At AXA Investment Managers we maintain a three-tiered approach to RI and impact investing.
At AXA Investment Managers (AXA IM) we believe that responsible investment (RI) can not only deliver sustainable, long-term value for clients but that it can also make a positive impact on society.
How do we categorise our RI offering?
We segment our RI offering into three sections; ESG embedded, ESG integrated and sustainable investing. Below we outline what this means and how this is implemented across at AXA IM.
All of our funds (excluding index and fund of hedge funds) apply AXA IM RI sectorial exclusion policies (controversial weapons, climate risks, palm oil and soft commodities) and benefit from active engagement and proxy voting. In addition, the ESG score and carbon footprint are displayed on the factsheet of the vast majority of AXA IM funds.
Our ESG analysis is integrated across all our investment platforms which allows our investment teams to take into account ESG risks and opportunities when making investment decisions that are tailored to clients’ objectives. ESG integrated mutual funds also apply our ESG standards policy, with additional exclusions on tobacco, defense, UNGC breaches and poor ESG quality. Additional ESG KPIs are displayed in the reporting of these funds2.
This includes assets within an eligible universe based on ESG criteria and / or with an ESG objective, as well as impact and green investing assets. Impact investing goes beyond ESG risk monitoring and focuses on financing businesses and projects that are designed to have intentional, positive and measurable impacts on society while simultaneously delivering financial market returns.
Source: AXA IM as at 30.06.2019. Non audited figures.
1 AXA IM Joint Ventures have a specific approach with regards to ESG scoring and stewardship
2 Available upon request
Avoid exposures that conflict with your principles & values
Identify ESG risks & opportunities
Invest by incorporating ESG analysis
Impact with outcome-oriented investments
Influence through in-depth research and engagement
ESG integration: a firm wide approach
ESG integration at AXA Investment Managers is developed using input from teams across the business and ensuring that ESG at part of our DNA.
The illustration below demonstrates the holistic approach to ESG at AXA Investment Managers.
Corporate responsibility and RI are part of AXA IM’s DNA, ESG training is available for employees and our management board have a strong commitment to ESG.
Voting is overseen by a corporate governance committee which is attended by representatives from the RI and investment teams. Our voting policy reflects our convictions as a responsible investor, in particular with regards to climate change and gender diversity.
Company and Thematic Engagement
Engagement provides us with the opportunity to act as key influencers
Frameworks, Solutions and Tool
Governance has been developed to ensure a successful and consistent approach to ESG integration across AXA IM. This approach leverages common tools and solutions, such as ESG scoring methodologies and reporting for instance.
Investment professionals have access to the ESG scores of issuers as well as KPI’s in their front office and analytical reporting tools.
Thematic ESG Research
Our RI team analyses the thematic research on topics such as climate change, human capital and diversity. This research helps inform engagement activities as well as investment decisions.
Proprietary ESG Scoring
We have developed proprietary ESG scoring methodologies for several asset classes. As an example, over 7,200 companies in 100 countries are scored through our corporate ESG scoring framework*.
Analysis and Reporting
Transparency is a central dimension of our ESG integration strategy. More detailed ESG reports available for our ESG integrated and responsible investing (RI) funds. These reports contain additional ESG KPI’s, as well as other relevant information such as voting or engagement reporting.
*Source: AXA IM as at 30.06.2018
What is our climate strategy?
As active investment managers, our decisions can affect positive change. We are deeply committed to tackling the impact of climate-related risks and as a large investor we have a key role to play in limiting global warming. Therefore we believe it is our duty to provide the relevant expertise to help our clients better understand climate change and how it may impact their portfolios, and support them in adapting their investment decisions accordingly. As shareholders, it is also our responsibility to engage with companies to encourage them to not only take better care of the environment but help improve public health and working conditions too.
Today our climate change policy, is fully aligned with the framework proposed by the Task Force on Climate-related Financial Disclosures, and is evidenced by our commitment to sector and international initiatives related to the environment such as the UN Principles for Responsible Investment, the Institutional Investors Group on Climate Change and the Carbon Disclosure Project. Our approach to the issue is centered around four pillars, and is supported by a climate taskforce involving participants from the Responsible Investment team, investment teams as well as Risk Management team.
Climate Change policy
As active investment managers, our decisions can affect positive change and we have a key role to play in limiting global warming.
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.