Exit from coal
Exit from coal is expressed as a percentage of total direct investments in corporate assets held by AXA IM that have exposure to thermal coal revenues (mining and power generation). Companies’ exposure to coal is defined as generating $1 or more of revenue from thermal coal.
TARGET: 0% of our investments exposed to thermal coal revenues in OECD member countries by 2030
PROGRESS AT THE END OF 2023: 0.36% of our investments in OECD member countries.
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
Corporate portfolio includes listed equity and fixed income assets. Carbon intensity is a measure of the CO2 emissions per million dollars of revenue a company generates.
TARGET: 25% reduction in carbon intensity for our corporate portfolio from 2019 levels by 2025.
PROGRESS AT THE END OF 2023: 48.6% reduction from 2019 levels, meaning we have already surpassed our 2025 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
This target covers real estate assets directly owned and managed AXA Group.
TARGET: 20% reduction in landlord operational carbon intensity from 2019 levels by 2025. The 2019 baseline is 31.3 kgCO2e/sqm.
PROGRESS AT THE END OF 2023: 32.6% reduction from 2019 levels.
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.
0.36%
EXIT
FROM COAL
IN PROGRESS
On target
CORPORATE PORTFOLIO
CARBON INTENSITY
TARGET MET
32.6%
REAL ESTATE
CARBON INTENSITY
TARGET MET
69%
REAL ESTATE AUM
CRREM ALIGNED
TARGET MET
On target
OPERATIONAL
CARBON FOOTPRINT
TARGET MET
€919M
NATURAL CAPITAL
SOLUTIONS
IN PROGRESS
68.9%
ACTIVE
EXTERNAL ENGAGEMENT
IN PROGRESS
77%
ACTIVE
INTERNAL ENGAGEMENT
TARGET MET
Operational carbon footprint
More specific than our comprehensive GHG emissions measurement, this KPI focuses on offices with over 50 employees and covers three emission streams: power, business travel, and car fleet.
TARGET: 26% reduction in operational carbon footprint from 2019 levels by 2025 (2019 baseline of 9,366 tCO2e).
PROGRESS AT THE END OF 2023: 33% reduction from 2019 levels, to 6,238 tCO2e in 2023.
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
The Carbon Risk Real Estate Monitor (CRREM) offers science-based real estate decarbonisation trajectories to limit the global temperature increase to 1.5°C or 2°C.
TARGET: Maintain 50% of direct real estate AUM in line with the CRREM (Carbon Risk Real Estate Monitor) trajectory by 2025.
PROGRESS AT THE END OF 2023: 2023 figure covers €23.1bn AuM. (incl. assets not owned for the entire reporting year) representing c. 35% of total AUM in scope.
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
The scope encompasses investments in forestry as well as a dedicated Natural Capital strategy.
TARGET: €1.2 billion to be engaged in Natural Capital Solutions by 2028.
PROGRESS AT END OF 2023: €919 million engaged in Natural Capital Solutions.
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
The scope covers engagement activities conducted during the two previous years, directly by AXA IM or collaboratively through Climate Action 100+.
TARGET: 70% of financed emissions in material sectors to be subject to engagement by 2025.
PROGRESS AT END OF 2023: 68.9% of financed emissions were subject to engagement.
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
The scope includes all active permanent employees (excluding joint ventures) as of 31/12/2023.
TARGET: at least 70% of employees to attend additional ESG and sustainability awareness sessions in 2023.
PROGRESS AT END OF 2023: 77% of employees attended additional awareness sessions.
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
exposure
reduction achieved
deployed
of financed emissions
under engagement
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
Results are mitigated by changes in coverage from data providers (now accounting for issuers that were not part of the 2019 datasets on coal revenue). The figure is also impacted by the sector’s outperformance given 2022’s geopolitical context and the energy crisis. In early 2023, we further strengthened our Climate Risks policy with a stricter exclusion threshold on companies generating more than 15% of revenues from thermal coal and by excluding all companies with new thermal coal projects or expansion plans.
Data to end December 2023.
Important information: Climate or sustainability-related metrics and underlying emissions data are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used to determine them. There is a limited availability of relevant data: such data is not yet systematically disclosed by issuers, or, when disclosed by issuers or collected from third-party data providers, it may be incorrect, incomplete or follow various reporting methodologies. The data sources and methodologies are expected to evolve and improve over time and may materially impact targets and the achievement of targets. Targets noted above reflect management’s current expectations, and are subject to a number of assumptions, variables and uncertainties, including actions of issuers in which we invest, suppliers and other third parties, as well as a variety of political, economic, regulatory, civil society and scientific developments beyond AXA IM’s control. There can be no assurances that our targets and the timetable for any transition will be achieved in whole or in part .
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2025
target
33.4%
2025
target
reduction
achieved
Progress
2019
baseline
0%
2019
baseline
Progress
48.6%
reduction
achieved
0%
-25%
Progress
exposure
0%
-25%
0.32%
2030
target
2019
baseline
2019
baseline
reduction
achieved
2025
target
0%
-20%
2025
target
50%
2028
target
€1.2bn
2025
target
70%
of employees
trained
2023
target
70%
Decarbonisation
Decarbonisation
Decarbonisation
Decarbonisation
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Decarbonisation
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Channelling capital
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Engagement
Engagement
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2030 target
AUM
CRREM-aligned
reduction
achieved
reduction
achieved
2030 target
2030 target
0%
-25%
-25%
2025 target
2025 target
-20%
69%
AUM
CRREM-aligned
€919M
NATURAL CAPITAL
SOLUTIONS
deployed
IN PROGRESS
68.9%
ACTIVE
EXTERNAL ENGAGEMENT
of financed emissions
under engagement
IN PROGRESS
77%
ACTIVE
INTERNAL ENGAGEMENT
TARGET MET
Corporate portfolio includes listed equity and fixed income assets. Carbon intensity is a measure of the CO2 emissions per million dollars of revenue a company generates.
TARGET: 25% reduction in carbon intensity for our corporate portfolio from 2019 levels by 2025.
PROGRESS AT THE END OF 2023: 48.6% reduction from 2019 levels, meaning we have already surpassed our 2025 target.
DRIVE
PROGRESS
WITH US
ESG LINKED REMUNERATION
STEWARDSHIP
AND
ENGAGEMENT
SOUND PROGRESS
IMPACT
INVESTING
SOUND PROGRESS
BUILDING SUSTAINABLE VALUE
BUILDING SUSTAINABLE VALUE
SOUND PROGRESS
SOUND
PROGRESS
OUR
POLICIES
WE WALK
THE TALK
SOUND PROGRESS
OUR
POLICIES
Results are mitigated by changes in coverage from data providers (now accounting for issuers that were not part of 2019 datasets on coal revenue). The figure is also impacted by the sector’s outperformance given 2022’s geopolitical context. In early 2023, we further strengthened our Climate Risks policy with stricter exclusion thresholds and by excluding companies with new thermal coal projects or expansion plans.
This progress is the consequence of increased engagement, either through individual engagements (i.e. climate laggards as defined in our “Three strikes and you’re out” policy), or collaborative initiatives (i.e. Climate Action 100+).
The 2023 progress is attributed to non-compulsory ESG training. This is on top of the 99% of employees who attended the AXA Climate Academy awareness programme in 2022. In 2024 our target is for at least 90% of employees to attend additional awareness sessions in the next two years.
The decrease in carbon intensity is largely explained by a general increase in exposure to low-emitting sectors, and a decrease in exposure to high-emitting sectors. Utilities, Materials, and Industrials continue to contribute the most. The companies we hold in this sector have achieved significant reductions in GHG emissions. Remaining on or below target will be achieved through active management, our policies, and exclusions.
We remain on target despite the increase against 2022. This reflects post-Covid travel changes and an unfavourable change in methodology. Efforts are focussed on maintaining this reduction, and defining our 2030 targets with AXA Group.
This KPI has been amended on scope and method, and now reflects actual investment in strategies. It also now includes both forestry strategies and natural capital solutions to align with AXA Group’s objectives and reporting.
Portfolios are not static, acquiring lower performing assets and potentially disposing of high performing ones could affect this metric negatively.
The KPI is defined by assessing the proportion of AUM aligned with the CRREM pathway. In 2022, we committed to 50% of direct real estate assets being in line by the end of 2025. The 2023 metric covers €23.1bn AUM, including assets not owned for the entire reporting year. The calculation is based on the 35% of real estate portfolios that can be measured through actual data, with assets included only if whole-building data is available. No data is available for Switzerland, US, Australia, and Japan.
The KPI is defined by assessing the proportion of AUM aligned with the CRREM pathway. In 2022, we committed to 50% of direct real estate assets being in line by the end of 2025. The 2023 metric covers €23.1bn AUM, including assets not owned for the entire reporting year. The calculation is based on the 35% of real estate portfolios that can be measured through actual data, with assets included only if whole-building data is available. No data is available for Switzerland, US, Australia, and Japan.
Results are mitigated by changes in coverage from data providers (now accounting for issuers that were not part of 2019 datasets on coal revenue). The figure is also impacted by the sector’s outperformance given 2022’s geopolitical context. In early 2023, we further strengthened our Climate Risks policy with stricter exclusion thresholds and by excluding companies with new thermal coal projects or expansion plans.
This progress is the consequence of increased engagement, either through individual engagements (i.e. climate laggards as defined in our “Three strikes and you’re out” policy), or collaborative initiatives (i.e. Climate Action 100+).
The 2023 progress is attributed to non-compulsory ESG training. This is on top of the 99% of employees who attended the AXA Climate Academy awareness programme in 2022. In 2024 our target is for at least 90% of employees to attend additional awareness sessions in the next two years.
The decrease in carbon intensity is largely explained by a general increase in exposure to low-emitting sectors, and a decrease in exposure to high-emitting sectors. Utilities, Materials, and Industrials continue to contribute the most. The companies we hold in this sector have achieved significant reductions in GHG emissions. Remaining on or below target will be achieved through active management, our policies, and exclusions.
We remain on target despite the increase against 2022. This reflects post-Covid travel changes and an unfavourable change in methodology. Efforts are focussed on maintaining this reduction, and defining our 2030 targets with AXA Group.
This KPI has been amended on scope and method, and now reflects actual investment in strategies. It also now includes both forestry strategies and natural capital solutions to align with AXA Group’s objectives and reporting.
Portfolios are not static, acquiring lower performing assets and potentially disposing of high performing ones could affect this metric negatively.