Sustainability disclosure requirements
Making it easier for investors to compare the sustainability characteristics of different funds and make informed decisions about where they want to invest their money.
Overview
The Sustainable Disclosure Requirements (SDR) for fund managers, introduced by the Financial Conduct Authority (FCA) in 2024.
They aim to improve the trust and transparency of sustainable investment products and address concerns about ‘greenwashing’ – the practice of making financial products look more environmentally friendly than they are by using misleading language and branding.
The regulations mean that asset management companies have to provide better information for investors on how their money is being managed in terms of sustainability. This includes things like:
- How investment managers consider the environment or society when they invest
- What industries investment managers avoid investing in to reduce environmental or social harm
- What investment managers are doing to encourage the companies they invest in to do better for society or the planet
Jane Wadia, Head of Sustainability at AXA Investment Managers, explains what the new sustainability disclosure requirements mean for investors.
Key features of SDR
Jane Wadia, Head of Sustainability at AXA Investment Managers, outlines how AXA IM’s long heritage of sustainable investment management means we are well-placed to respond to the new regulations.
Annual sustainability reports
Under SDR, fund managers are required to publish a report for all funds that have an ESG component to their investment process or a sustainability goal. This report comes in a standardised format intended to make it easier for investors to compare the sustainability credentials of fund managers.
We have created SDR Consumer Facing Documents (CFD) for all our relevant funds, including those that haven’t adopted an SDR label. You can find these reports on our Fund Centre with the other documents, like the Prospectus and Key Investor Information Document (KIID).
AXA IM’s annual sustainability report
Fund managers are also required to report on the sustainability performance of the overall investments. Our annual Sustainability Report includes required reporting for both the SDR regulations and the Task Force on Climate-related Financial Disclosures (TCFD).
The first combined report will be published in 2025.
Important information
Fund-specific risk factors
AXA Carbon Transition Global Short Duration Fund
- Carbon Transition risk
- Credit risk
- ESG risk
- Interest Rate risk
- Prepayment and extension risk
- Index-linked bonds risk
- High yield bonds risk
- Risks linked to investment in sovereign debt
- Emerging Markets riskStock lending risk
AXA Carbon Transition Sterling Buy And Maintain Credit Fund
- ESG risk
- Carbon transition risk
- Credit risk
- Interest Rate risk
- AXA Global Sustainable Managed Fund
- Equity risk
- ESG risk
- Currency risk
- Emerging Markets risk
- Interest rate risk
- Risks linked to investment in sovereign debt
- Stock lending risk
AXA People & Planet Equity Fund
- Equity risk
- ESG risk
- Concentration risk
- Currency risk
- Emerging Markets risk
- Industry sector risk
- UN SDG alignment risk
- Smaller companies risk
- Stock lending risk
- AXA UK Sustainable Equity Fund
- Equity risk
- ESG risk
- Stock lending risk
Disclaimer
This marketing communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.
The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the web site https://www.axa-im.com/en/registration-map, where a fund registration map is available. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors.
For more information on sustainability-related aspects please visit https://www.axa-im.com/what-is-sfdr
For investors located in the European Union :
Please note that the management company reserves the right, at any time, to no longer market the product(s) mentioned in this communication in the European Union by filing a notification to its supervision authority, in accordance with European passport rules.
In the event of dissatisfaction with AXA Investment Managers products or services, you have the right to make a complaint, either with the marketer or directly with the management company (more information on AXA IM complaints policy is available in English: https://www.axa-im.com/important-information/comments-and-complaints ). If you reside in one of the European Union countries, you also have the right to take legal or extra-judicial action at any time.
The European online dispute resolution platform allows you to submit a complaint form (available at: https://ec.europa.eu/consumers/odr/main/index.cfm?event=main.home.chooseLanguage) and provides you with information on available means of redress (available at: https://ec.europa.eu/consumers/odr/main/?event=main.adr.show2).
Summary of investor rights in English is available on AXA IM website https://www.axa-im.com/important-information/summary-investor-rights. Translations into other languages are available on local AXA IM entities’ websites.
AXA Carbon Transition Global Short Duration Bond Fund and AXA Carbon Transition Sterling Buy And Maintain Credit Fund are sub funds of AXA IM Fixed Income Investment Strategies which is a Luxembourg UCITS Fund (“fonds commun de placement”) approved by the CSSF. It is managed by AXA Investment Managers Paris , a company incorporated under the laws of France, having its registered office located at Tour Majunga– La Défense 9 – 6, place de la Pyramide,– 92800 Puteaux, registered with the Nanterre Trade and Companies Register under number 353 534 506, and a Portfolio Management Company, holder of AMF approval no. GP 92008, issued on 7 April 1992.
AXA Global Sustainable Managed Fund, AXA People & Planet Equity Fund and AXA UK Sustainable Equity Fund are authorised unit trusts for the purposes of the Act and are constituted as a trust by a Trust Deed pursuant to the COLL Sourcebook. Each Fund is a UK UCITS which complies with the COLL Sourcebook.
Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ
In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.
Risk Warning
The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.