What is the AXA IM For Progress Monitor?

Learn about the AXA IM For Progress Monitor through our Q&A and metrics explained.

Carbon Intensity
Carbon footprint
Coal exposure
Real Estate
Natural Capital Solutions
Active Engagement

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

Progress towards these interim targets will be communicated annually and complement our reporting cycles.  These targets are part of our company’s strategic roadmap and will be reviewed to ensure they are suitably ambitious and reflective of our broader business objectives.  

For several years now, AXA IM has diligently tracked, monitored, and reported transparently on numerous advanced metrics across our investment portfolio and business in its annual TCFD (Taskforce on Climate related Financial Disclosures) and stewardship reports. Non-financial metrics¹ reported as part of AXA IM Progress Monitor are measured directly by AXA IM teams, relying on third-party data providers in some cases. Progress is measured by the teams responsible for these metrics and verified internally by the relevant technical and control teams.²

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Our clients receive detailed and specific reporting on several ESG related metrics. The Progress Monitor highlights eight key metrics to provide an overall picture of our progress in one place. We seek to enhance credibility as a responsible asset manager, holding ourselves to the same high standards we expect of the companies we invest in.   

AXA IM aligns compensation of senior executives to its ESG ambitions, as part of its commitment to becoming net zero as a business and investor by 2050 to help the transition to a more sustainable world and encourages employees to take part in learning and awareness sessions on sustainability related topics.

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.

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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.  

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Real Estate

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. 

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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.

Active Engagement

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. 

Important information

Climate or sustainability-related metrics and underlying emissions data are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used to determine them. There is a limited availability of relevant data: such data is not yet systematically disclosed by issuers, or, when disclosed by issuers or collected from third-party data providers, it may be incorrect, incomplete or follow various reporting methodologies. The data sources and methodologies are expected to evolve and improve over time and may materially impact targets and the achievement of targets.

Targets noted above reflect management’s current expectations, and are subject to a number of assumptions, variables and uncertainties, including actions of issuers in which we invest, suppliers and other third parties, as well as a variety of political, economic, regulatory, civil society and scientific developments beyond AXA IM’s control. There can be no assurances that our targets and the timetable for any transition will be achieved in whole or in part.