Our road to net zero
Accelerating the transition to a net zero world: our commitments as a responsible investor and business.
Our principles for climate action
There isn’t one single answer or path to solving this challenge, but we want to be one of the leaders on this journey: in our investment choices, the products we offer, the way we engage and vote, and manage our business.
We actively invest with purpose and for the greater good, and stand by our convictions while balancing the need to deliver long-term value to clients.
Acting with conviction
We believe that our fiduciary duty goes beyond delivering returns to our clients. It is also about investing responsibly, driving climate action, and ensuring the long-term sustainability of the world we live in.
65% of our total AUM is now committed to be managed in line with Net Zero in 2050. Since our first reporting to the Net Zero Asset Managers Initiative (NZAMI) in October 2021, we have increased the scope of the assets that are committed to be managed in line with Net Zero to 65% of our total AUM; 75% if we exclude our JVs. This now includes 100% of our corporate equity and bonds, 100% of our government bonds, 100% of our listed real assets, and 100% of real estate assets we manage on behalf of AXA Group, for which we have defined clear Net Zero pathways in line with the IPCC 1.5°C pathways report. Additionally, we have set interim carbon intensity reduction targets for 2025 (-25% vs 2019 baseline) and 2030 (-50%), which are applicable to Corporate assets. The full AUM for the corporate portfolio is to be net zero aligned or aligning by 20401 . If there are holdings that are not net zero aligned or aligning in 2040, we will divest. Our oil and gas policy and the ‘three strikes and you’re out’ policy with climate laggards, contained within our strengthened engagement policy will help us achieve this target.
Our aim is to continue to grow the proportion of net zero aligned AUM in 2022. And as a founding investor of the Net Zero Asset Managers Initiative (NZAMI) launched in December 2020, we are committed to achieve net zero emissions across our portfolios by 2050 or sooner, as well as playing a key role in helping AXA Group realise their ambitious climate goals.
When it comes to our own operations, we are working to become a net zero business by 2050, and we are applying a three-step methodology to make this happen: measure, reduce and compensate (for examples via carbon offsetting, however we view this as a last resort). We have already committed to reduce our global Co2 footprint by at least 25% by 2025 versus 2019.
Acting bravely and openly
Engagement and dialogue with companies and clients is crucial to influencing the journey to net zero. We recognise that the transition will come with some challenges, and whilst we will allocate more and more capital towards climate solutions and other net zero-aligned assets, we will continue to finance those which we believe are effectively transitioning.
We have reinforced our climate engagement and stewardship policy, with a view to divest from climate laggards (a focused list of companies considered material in both portfolios and on climate change) if after three years of constructive engagement not enough progress has been made.
Acting with others
We have always understood that by taking collective action with our peers and pooling our efforts and influence, we have the power to effect tangible change. We will continue to channel more capital towards responsible solutions to our clients, such as our sustainable investing range, as well as offering education programmes on ESG topics for our clients and employees.
We believe a global approach to climate action from regulators is essential to ensure success in implementation of sustainable finance and real economy policies, and we are actively involved in steering groups and industry initiatives such as the NZAMI, NZAOA, NZAM and Climate Action 100. At the World Climate Summit recently we asked our industry peers to act decisively with us to influence companies that are not taking climate change seriously, through our decisions on capital allocation.
- Aligning definition for corporate assets: companies which have credible targets or are a net zero enablers.
Find out about the innovations and practices that lie at the heart of our sustainable strategy.
We believe as a major global investor, business and employer, we have a role in generating positive and measurable progress for the global economy, the planet and the communities in which we live.
Decarbonisation is undeniably underway, and the implications are huge for the global economy, our investment teams and of course, our clients.
Watch our three experts in conversation as they deep dive into decarbonisation, exploring the macroeconomic landscape and discussing the key challenges and opportunities that arise as we seek to transition to a low carbon economy.
Our ACT range is designed to enable our clients to invest in the companies and projects leading the transition to a more sustainable world.Visit our Core investments website for more