Exit from coal
TARGET: 0% coal investment in OECD by 2030.
ACTUAL: 0.247% of total direct investments in listed corporate AUM was reported, almost 11.5% towards our goal to exit completely (in the OECD) by 2030.
Progress at end of 2022 is the result of the implementation and strengthening of our exclusion criteria within our Climate Risks Policy, as well as continuous engagement with the companies held regarding their climate transition plans. This has been achieved despite an increased coverage of issuers from our data providers regarding coal revenue data - without this change, our coal exposure would likely have declined at a greater pace.
Furthermore, the macroeconomic and geopolitical context and subsequent outperformance of the energy sector, has contributed to higher market values leading to increased coal exposure in our portfolios. This could be even more significant in 2023, despite a strengthening of our Climate Risks Policy.
Corporate portfolio carbon intensity
TARGET: 25% reduction in carbon intensity for our corporate portfolio by 2025 vs. 2019.
ACTUAL: 28.7% carbon intensity reduction, meaning we have exceeded our 2025 interim target.
The decrease in carbon intensity can largely be explained the sectors we have invested in. There has been a general increase in exposure to low-emitting sectors, such as Financials, and a decrease in exposure of the average carbon intensity of high-emitting sectors, such as Utilities. The Utilities sector’s carbon intensity measurement was boosted by inflation between 2021 and 2022 as it is calculated based on revenues. Regardless, the companies AXA IM holds in this sector have achieved significant reductions in GHG emissions.
Remaining on or close to target as a consequence of portfolio churn, will be achieved through active management and our policies and exclusions.
Real Estate carbon intensity
TARGET: 20% reduction in landlord operational carbon intensity by 2025 vs 2019.
ACTUAL: 19% reduction in direct real estate AUM carbon intensity, representing 95% progress
While this is significant progress, portfolios are not static. Acquiring lower performing assets with the aim of improving their performance, and potentially disposing of high performing assets, could affect this metric in the future. The current measure has been reached through investments in new building systems, increased interaction with property managers and new building certifications albeit being affected by the impact of Covid19 and underused buildings.
11%
EXIT FROM COAL
GOAL 0% IN OECD COUNTRIES BY 2030 VS 2019
On target
CORPORATE PORTFOLIO CARBON INTENSITY
GOAL -25% BY 2025
VS 2019
95%
REAL ESTATE CARBON INTENSITY
GOAL -20% BY 2025
VS 2019
On target
REAL ESTATE AUM CRREM ALIGNED
GOAL 50% BY 2025
On target
AXA IM CARBON FOOTPRINT
GOAL -26% BY 2025
VS 2019
30%
NATURAL CAPITAL SOLUTIONS
GOAL $500M COMMITTED BY 2028
82%
ACTIVE EXTERNAL ENGAGEMENT
GOAL 70% BY 2025
On target
ACTIVE INTERNAL ENGAGEMENT
GOAL 100% BY END OF 2022
AXA IM carbon footprint
TARGET: 26% reduction in operational carbon footprint by 2025 vs 2019.
ACTUAL: 58.4% reduction to 3532 tCO2e, down from 8493 tCO2e in 2019 and double the reduction we had hoped to achieve by 2025.
The decrease in AXA IM footprint is largely due to efforts to reduce business travel emissions. This can be attributed to new work habits post pandemic, quality of digital tools and a revised Business Travel Policy that reinforces the need for sustainable travel choices.
While we expect business travel continuing to increase to return to pre pandemic levels, efforts are now expected to focus on maintaining this reduction through better monitoring of business travel, effective implementation of the revised travel policy and leveraging digital technologies where appropriate, as well as pushing for further reductions elsewhere.
Real Estate AUM CRREM aligned
TARGET: Maintain 50% of direct real estate AUM in line with the CRREM (Carbon Risk Real Estate Monitor) trajectory by 2025.
ACTUAL: 50% of AUM maintained to align with CRREM trajectories based on AXA IM reasonable assumptions made with available data and on a model portfolio, as at the end 2021.
The Carbon Risk Real Estate Monitor (CRREM) helps investors assess and manage risk in the real estate sector related to climate change by offering clear, science-based decarbonization routes that are in line with the Paris Climate Goal of reducing global temperature increase to 2°C, with a goal of 1.5°C. Progress is defined as maintaining a defined proportion (50%) of AUM to be aligned to the CRREM pathway by 2025, knowing that every year CRREM tajectory becomes more ambitious and harder to align with and considering the portfolio turnover. Following changes to the CRREM methodology in Q2 2023, a refined methodology is being tested, with results anticipated by the end of Q4 2023. For 2021 and 2022, we refer to the performance of a reference model portfolio, representing circa 19% of in-scope assets, where the performance remains aligned with the expected performance threshold in 2025, for more than 50% of the portfolio.
Natural Capital Solutions
TARGET: $500m committed to Natural Capital Solutions by 2028.
ACTUAL: $150m committed to the Natural Capital strategy in 2022, representing 30% progress.
In 2022, $150M was committed to the strategy, out of the $500M, to support a large range of natural capital activities. The first closing took place at the end of December 2022. AXA IM initiated investments under the Natural Capital strategy in 2023.
Active external engagement
TARGET: 70% of financed emissions in material sectors to be subject to engagement by 2025.
ACTUAL: 57.4% of financed emissions were under engagement as at end 2022, representing 82% progress towards our goal.
Engagement is one way in which AXA IM can effect change, wielding our influence as asset owners. When prioritising our engagement activities on climate issues, we engage not only with our largest holdings, but also the companies with the most material impacts on climate change.
Active internal engagement
TARGET: 100% of employees to attend a learning and awareness session on ESG and sustainability by end 2022.
ACTUAL: 100% of employees attended learning and awareness sessions as at end 2022.
This achievement can be attributed to the AXA Climate Academy awareness programme for employees and new joiners, who are offered introductory ESG and climate e-learning modules, with some deeper-dive learning on specific topics.
In 2023, our target is for at least 70% of employees to attend additional awareness sessions.
Scope covers all active permanent employees excl. JVs as of 30.11.2022.
OUR
POLICIES
ESG INTEGRATION
progress
progress
progress
progress
Corporate portfolio carbon intensity
DRIVE
PROGRESS
WITH US
ESG LINKED REMUNERATION
Active internal engagement
BUILDING SUSTAINABLE VALUE
SOUND PROGRESS
BUILDING SUSTAINABLE VALUE
SOUND PROGRESS
WE WALK
THE TALK
SOUND PROGRESS
STEWARDSHIP
AND
ENGAGEMENT
SOUND PROGRESS
IMPACT
INVESTING
SOUND PROGRESS
OUR
POLICIES
SOUND
PROGRESS
OUR PROGRESS EXPLAINED
OUR PROGRESS EXPLAINED
OUR PROGRESS EXPLAINED
Real Estate carbon intensity
OUR PROGRESS EXPLAINED
Real Estate AUM CRREM aligned
OUR PROGRESS EXPLAINED
AXA IM carbon footprint
OUR PROGRESS EXPLAINED
Active external engagement
OUR PROGRESS EXPLAINED
Natural Capital Solutions
OUR PROGRESS EXPLAINED
Exit from coal
Data to end December 2022.