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
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
How does ESG impact our investment teams?
Leveraging our two decades of responsible investing experience, we are integrating ESG analysis into all our investment platforms, providing fund managers with access to proprietary ESG scores and key performance indicators (KPIs) in their front office tools, as well as additional data and research.
The central responsible investing (RI) team focuses on thematic research, corporate governance and shareholder engagement as well as on developing quantitative solutions. Headed by Matt Christensen, the team is comprised of 14 experienced professionals, including 10 RI analysts, with an average of 13 years’ experience*.
Across our platforms we have dedicated RI resources working directly with fund managers who continue to be fully empowered and accountable for their process and results.
*AXA IM as at 30/06/18
The fixed income and high yield teams have reinforced their credit analysis team, and each has been trained to incorporate ESG considerations in their analysis of issuers.
Framlington Equities has a team of three specialists dedicated to ESG, who support fund managers on a day to day basis in the analysis of companies.
Rosenberg Equities has a dedicated ESG team, comprising of five ESG specialists headed by Kathryn McDonald.
Our multi-asset team work closely with the equity and fixed income platforms to integrate ESG, through two major pillars.
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.
ESG research & publications
Empower investors with key insights on responsible investment trends, as we look at how investments could help foster prosperity for people and prosperity for the planet.
A detailed look at impact investing
Go beyond ESG integration towards a positive financial and societal impact.