AXA IM Real Assets - Vision 2030

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In 2017 we put in place a new, four-step approach to address environmental, social and governance factors across the direct property assets we manage.

In 2015, we launched an ambitious strategy to improve the sustainability profile of the direct property assets we manage: Vision 2030. Focused on obtaining external certification labels for the assets we manage, Vision 2030 has a central goal: by 2030, 75% of direct property assets under management should hold internationally recognised sustainability certifications.

Today, our vision is well on track. As of 31 August 2017, 38% of our direct property assets under Management (AUM)1 were certified with a recognised sustainability label: BREEAM, LEED or respected local certifications such as HQE in France or Minergie in Switzerland.

In total, 25 additional certifications were obtained during the 12 months2. We have put plans in place on an asset-by-asset basis, and by 2020, over 60% of our assets under management should hold sustainability labels.

Vision 2030 is an important tool to help us meet investor and tenant demand and mitigate market risk, as it ensures the assets we manage meet market standards from an environmental, social, and governance (ESG) perspective.

Vision 2030

In 2017 we recognised the need to go further.

Complementing Vision 2030, we have put in place additional steps to improve our property assets. We use a proprietary system developed by AXA IM - Real Assets to carry out an in-depth ESG assessment and portfolio benchmarking for some of our clients:

  • ESG ratings: We calculate ESG ratings on a series of metrics to define and benchmark the asset’s ESG profile and monitor progress over time. In 2017 we carried out 486 ratings, covering 50% of our assets (€25 billion in AUM).
  • ESG action plans: We put in place short-, medium and long-term actions to improve the ESG rating of each asset in scope. We aim to anticipate legislation, upgrade assets and equipment as well as trial and roll out innovative measures.
  • ESG footprints: We collect resource use and emissions data for all assets in scope. For high potential assets (just under 70% of the portfolio by AUM1) we monitor reductions in energy consumption and service charge savings, and provide reporting to investors on resource use KPIs. In 2017, we collected data for 889 assets, around 85% of our planned total.

This new approach follows our introduction of the ESG tool in 2016 to track, monitor and aid the data collection process at each of our assets. Implementing the tool has brought us consistent data and the ability to compare and benchmark our assets.

"Taking a pro-active approach to ESG is as much about creating value as protecting it. Our investors need to know we are anticipating environmental, regulatory and market risks." Isabelle Scemama, CEO, Real Assets

1Source: AXA IM - Real Assets. Assets under management at 30 June 2017

2Certification labels obtained between 1 September 2016 and 31 August 2017