41% of AXA IM’s eligible assets* in line with the Net Zero Asset Managers Initiative 2050 objective
As a member of the Net Zero Asset Managers Initiative (NZAMI) created in December 2020, AXA Investment Managers (AXA IM) has committed to support the goal of net zero greenhouse gas (GHG) emissions by 2050, in line with global efforts to limit warming to 1.5°C (“net zero emissions by 2050 or sooner”).
With signatories due to share their individual progress to the NZAMI ahead of COP 26, AXA IM has reported that €137 billion of the assets it manages are on course to reach net zero by 2050 or sooner, representing 41% of all listed corporate stocks & bonds as well as direct real estate assets under management.
Marco Morelli, Executive Chairman at AXA IM, said: “We are reporting on our net zero journey for the first time today and in a few weeks, during the World Climate Summit in Glasgow, we will share further details on how we intend to not only support but accelerate the transition to a low-carbon world. This will include our interim targets and new ambitious commitments”.
“While climate action remains a collective effort across policy makers, corporates, governments and investors, we at AXA IM firmly believe that we can make a difference by allocating increasingly more capital towards companies and projects that are dedicated to supporting the goal of achieving net zero greenhouse gas emissions by 2050 or, when possible, sooner.” added Marco Morelli.
AXA IM has taken the following actions to contribute to the transition to a low carbon world:
- Exit all coal investments in OECD countries by 2030, and throughout the rest of the world by 2040.
- Making its product range greener, including the launch of new carbon-focused strategies, further expanding a portfolio of green investments and the creation of an “ACT” family of funds to categorise its most focused ESG funds to help clients easily identify these funds and be clear on the criteria.
- Publication of a yearly TCFD report since 2019, presenting the ESG and climate strategies, as well as key metrics, such as the carbon footprint of investments which decreased by -8% between 2018 and 2020.
- Engagement with 319 companies in 2020, with 27% of those engagements related to climate change and 18% related to resources and ecosystems.
- Working in tandem with AXA to assess methodology for Paris-aligned investing and define achievable targets: AXA Group has committed in 2020 to a 20% reduction in CO2 emissions from applicable investments, between 2019 and 2025. This target is revised regularly in line with the Net Zero Asset Owner Alliance (NZAOA) protocol.
- Targeting at least 50% of direct real estate AUM aligned with 1.5° trajectory by 2025 using CRREM (Carbon Risk Real Estate Monitor) target pathways.
About the Net Zero Asset Managers Initiative:
The Net Zero Asset Managers initiative brings together an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
It currently includes 128 signatories managing $43 trillion of assets under management.