Allocating capital to climate solutions and net zero-aligned assets
Portfolio construction favours more-aligned over less-aligned issuers and uses client flows and re-investments to rebalance carbon exposure over time. We apply AXA IM exclusion policies from our broader responsible investment approach and avoid climate laggards, but we avoid disinvestment in companies unless necessary.
We seek to meet our carbon transition objective by:
Financing companies that are transitioning their own businesses away from fossil fuels
We use our extensive analyst resource and proprietary Net Zero Alignment Colours Framework to monitor issuers and portfolio decarbonisation.
Engage with companies to understand and influence their net zero trajectories trajectories
Engagement is one of the most powerful tools we have to encourage companies to reduce carbon emissions. Divestment remains an option of last resort, but we believe that holding a bond gives us a greater opportunity to improve outcomes for investors and the world.