What is the AXA IM For Progress Monitor?
Learn about the AXA IM For Progress Monitor through our Q&A and metrics explained.
Q&A on the AXA IM For Progress Monitor
The AXA IM for Progress Monitor is a selection of eight metrics with interim targets, chosen for their strategic importance and material contribution towards the firm’s goal of becoming net zero as a business and investor by 2050. These metrics are:
- Corporate portfolio carbon intensity
- AXA IM operational carbon footprint
- Coal exposure
- Real Estate carbon intensity
- Real Estate AUM CRREM aligned
- Investment in Natural Capital Solutions
- Active external engagement
- Active internal engagement
Corporate portfolio carbon intensity
Metric explained – Corporate portfolio carbon intensity
25% reduction in carbon intensity for our corporate portfolio by 2025 vs. 2019
Carbon intensity is a measure of the GHG emissions per million dollars of revenue a company generates. AXA IM calculates a weighted average of carbon intensity on revenue for all corporates we hold. (AXA IM core scope only)
This measurement only covers Scope 1 and 2 GHG emissions resulting from the companies we invest in. We intend to capture Scope 3 when the data quality for Scope 3 emissions improves for our investee companies.
Operational carbon footprint
Metric explained – Operational carbon footprint
26% reduction in operational carbon footprint by 2025
AXA IM’s operational carbon footprint is the CO2 emissions produced by our business. Our interim target requires a reduction of 26% across three key emissions streams: power, business travel and car fleet by 2025. This measurement accounts for AXA IM offices with more than 50 employees4 across those three emission streams.
In the future, we aim to develop new targets that are based on data covering all our locations.
Exit from Coal
Metric explained - Exit from coal
0% coal investment in OECD by 2030
AXA IM is phasing out investments held in the thermal coal industry by 2040. The interim goal is to achieve this in countries in the Organisation for Economic Cooperation and Development (OECD) by 2030.
The exit from coal is expressed as a percentage of total direct investments in corporate assets held by AXA IM3 that has exposure to thermal coal revenues (mining & power generation) from a baseline of 0.279% in 2019.
To monitor progress, AXA IM did not set any threshold for considering an asset as ‘coal exposed’. Therefore, if a company has 1$ revenue in coal activities, AXA IM accounts for all (100%) investments in this company when calculating its global coal exposure.
Metric explained – Real Estate carbon intensity
20% reduction in landlord operational carbon intensity by 2025
For real estate, carbon intensity is a measure of the CO2 emissions per square meter of physical area. This reflects the actual emissions from the asset, rather than the emissions attributed to the ownership of the asset.
This measurement covers Scope 1 and 2 carbon emissions resulting from the assets we invest in. Scope 3 data is excluded.
Metric explained - Real Estate AUM CRREM aligned
50% of direct real estate AUM in line with the CRREM (Carbon Risk Real Estate Monitor) trajectory by 2025
CRREM1 (Carbon Risk Real Estate Monitor) is a real estate sector specific tool which projects a science-based pathway for real estate assets based on their sector and geography2 . The tool sets out targets for energy use intensity and carbon intensity which has been modelled to achieve the performance targets necessary to enable alignment with a 1.5°C scenario.
Progress with this metric is defined by maintaining a defined proportion (50%) of AUM to be aligned to the CRREM pathway by 2025.
Natural Capital Solutions
Metric explained – Natural Capital Solutions
$500m committed to Natural Capital Solutions by 2028
This metric tracks the capital committed to the Natural Capital strategy that supports the protection, sustainable management, and restoration of natural capital. This financing is subsequently committed to private organisations (companies or NGOs) whose business model depends directly on their ability to positively manage natural capital and monetise the benefits of that, usually through carbon markets.
Metric explained - Internal Engagement
100% of employees to attend a learning and awareness session on ESG and sustainability by end 2022.
This metric tracks the completion of training and awareness sessions that have a focus on the environment as defined by AXA IM HR department. The scope covers all active permanent employees excl. JVs as of 30.11.2022.
In 2023, our target will change to at least 70% of employees to attend additional awareness sessions.
Metric explained - External Engagement
70% of financed emissions in material sectors to be subject to engagement by 2025
Financed emissions are the greenhouse gas (GHG) emissions produced by any listed company in sectors with material impact to climate change we invest in. When prioritising our engagement activities on climate issues, we wish to ensure we are engaging not only with our largest holdings, but the companies with the highest emissions. This is reflected in how we measure the proportion of financed emissions subject to engagement, using industry methodologies.
Engagement is active dialogue with our investee companies, in some cases with specific and targeted objectives, and can be directly conducted by AXA IM or through collective engagement such as with the Climate Action 100+ initiative, in line with Paris Aligned Asset Owner (PAOO) Net Zero Investment Framework (NZIF) target-setting guidance.