Draw upon our long-term, global, approach to responsible and sustainable investing
+ 20 years
of experience in responsible and impact investing
of AUM** classified as Articles 8 & 9 under SFDR
issuers rated according to ESG criteria
of our core portfolio managers have access to ESG research and scores
Source: AXA IM as at December 2020
* All percentages exclude non applicable assets (assets that are managed outside the EU and therefore not in scope of the regulation). All figures as at 31 December 2020 unless otherwise specified.
** As at 31 December 2020, assets under management within Equities, Fixed Income and Multi-Asset stand at €587 billion out of which €460 billion are applicable under the SFDR.
Source: AXA IM as at December 2020
What is responsible investing?
Responsible Investing (RI) enables clients to align their investments with global megatrends that are changing the investment landscape. Issues such as increasing regulation, the growing need for risk mitigation and a heightened social conscience can be more effectively addressed by integrating Environmental, Social and Governance (ESG) factors into the investment process.
An ongoing evolution
Responsible Investing has changed tremendously and continues to evolve. Where before much of the focus was on avoiding companies deemed to be at odds with specific environmental, social or corporate governance factors, these days investing responsibly runs the gamut from negative screening to integrated solutions and all the way to impact investing.
Our philosophy and mission
At AXA Investment Managers, we believe Responsible Investing can deliver sustainable, long-term value for clients and create a positive impact on society. This has underpinned our work in developing investment solutions that incorporate ESG considerations across all asset classes.
Is there a difference between socially responsible investing and ESG integration?
Socially responsible investing (SRI) and ESG are often treated as one in the same, however, there are some key differences between the two and the impact they have on the investment process.
Environmental, social and governance (ESG)
ESG refers to the practices of an investment that may have a material impact on the performance of that investment. The integration of ESG factors is used to enhance traditional financial analysis by identifying potential risks and opportunities beyond technical valuations. The main objective of ESG integration remains financial performance.
Socially responsible investing (SRI)
SRI goes one step further than ESG by actively eliminating or selecting investments according to specific social/sustainable guidelines. The underlying motive could be religion, personal values or political beliefs. SRI strategies use ESG factors to shape the objectives of the strategy and/or apply negative or positive screens on the investment universe.
Responsible investment is a young industry that lacks widely-acknowledged and precise norms, guidelines and definitions. So far, there is an understanding that responsible investment is a generic term that refers to a wide range of approaches that integrate environmental, social and governance (ESG) criteria in the investment process. Responsible investment can take on a variety of forms and should help to identify and to mitigate investment risks.
Key dimensions of our ESG assessment of corporations and countries
What does ESG mean at AXA Investment Managers?
As a responsible investor we want to manage ESG risks and opportunities when investing on behalf of our clients, and we have identified certain sectors we will not invest in above a specified threshold. Consequently, sectorial exclusions on controversial weapons, palm oil, soft commodities and coal are applied across all assets.
Going beyond this, we apply our ESG standards to our responsible investing (RI) and ESG integrated open ended funds, which will also be available to institutional clients on an opt-in basis.
These standards help us to manage ESG risks and focus on material issues such as climate change, health and social capital, while also considering severe controversies as well as low ESG quality.
As a result of these ESG standards, the following sectors and areas are excluded from our RI and ESG integrated funds:
- Coal and tar sands producers
- Severe breaches of United Nations Global Compact (UNGC) principles
- Low ESG quality companies
The AXA IM ESG standards form one dimension of our ESG integration approach, which also include ESG corporate analysis and scoring, and common views on thematic engagement and voting.
Avoid exposures that conflict with your principles & values
Identify ESG risks & opportunities
Invest by incorporating ESG analysis
Impact with outcome-oriented investments
Influence through in-depth research and engagement
Our approach and offering
ESG at AXA Investment Managers is developed using input from teams across the business and we maintain a three-tiered approach to responsible and impact investing: ESG embedded, ESG integrated and sustainable investing
Our framework and scoring methodology
ESG integration has seen rapid growth over the past few years, and this section looks at how we at AXA Investment Managers approach this change and our five-step approach to our scoring methodology.