We remain steadfast in driving progress to a sustainable future.
By Marco Morelli, AXA IM Executive Chairman
Investment does not have to be a binary choice between sustainability and strong financial performance. Clients need clarity on Responsible Investing (RI) – and they also want to see their assets perform. This 2023 Stewardship Report sets out how AXA Investment Managers works to meet both these goals and how, in doing so, the company reinforces its purpose, ‘to act for human progress by investing for what matters’.
As an investor, AXA IM’s primary goal is to deliver returns and outcomes for its clients, whilst keeping responsibility central to everything it does. This includes enabling the transition to a more sustainable future and continuing to develop a distinctive industry-leading offering to enable clients to invest in sustainable strategies, or in sectors that will benefit from the transition.
The company also believes that proper consideration of Environmental, Social and Governance (ESG) factors are additive to performance, which is why a robust and measurable stewardship and engagement strategy is fundamental to its approach; and why AXA IM’s RI teams advocate with industry bodies and regulators, vote with conviction at company meetings, and maintain dialogue with companies.
I am proud of AXA IM's record of engaging with companies across a considerable spectrum of ESG themes. In 2023, a substantial percentage of engagements focussed on climate change (37%), followed by corporate governance (17%), human capital (17%) and resources & ecosystems (16%). AXA IM’s teams also prioritise social relations, business ethics and public health. In addition, they ensure that engagements happen across a range of asset classes. This Stewardship Report
includes case studies that demonstrate the impact of investor dialogue, and I was delighted to see the CFA has referenced AXA IM in their CFA ESG learning, as good practice for disclosure on engagement activity.
Looking ahead to the next three years of the company’s strategic plan, AXA IM will continue to be an advanced responsible investor, ensuring continued emphasis on stewardship as a key element of its approach to RI. The company will prioritise transparency, assertive engagement, and a focus on critical issues such as biodiversity loss, pollution and human and worker rights - as defined by the RI team and by the Portfolio Managers who are in regular dialogue with market participants. As AXA IM strives to provide the highest level of transparency to all its stakeholders, in 2024 the company will start disclosing the rationale for all votes against ESG-related shareholder proposals and against shareholder resolutions. In addition, it will provide clients with enhanced portfolio level Engagement Reports, giving more details on the content of those discussions, level of progress and objectives. As a business, now more than ever, it is important that the company is open about what it does and why it does it. Regular and public self-monitoring of RI efforts – through stewardship reporting and through tools such as the AXA IM for Progress Monitor – ensures that AXA IM holds itself to account.
Progress on sustainability also requires collective action and AXA IM is committed to remaining active within a range of collaborative initiatives, such as Climate Action 100+ initiative and Nature Action 100 (NA100) to help foster change.
I am confident that by maintaining the emphasis on transparency, commitment to a more sustainable future, and engagement with likeminded stakeholders, AXA IM will strengthen its ability to deliver sustainable long-term performance for clients.
Disclaimer
This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.
Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee such opinions, estimates and forecasts made will come to pass. Actual results of operations and achievements may differ materially. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Information herein may be obtained from sources believed to be reliable. AXA IM HK has reasonable belief that such information is accurate, complete and up-to-date. To the maximum extent permitted by law, AXA IM HK, its affiliates, directors, officers or employees take no responsibility for the data provided by third party, including the accuracy of such data. This material does not contain sufficient information to support an investment decision. References to companies (if any) are for illustrative purposes only and should not be viewed as investment recommendations or solicitations.
All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and that past performance is no guarantee of future returns, investors may not get back the amount originally invested. Investors should not make any investment decision based on this material alone.
Some of the services listed on this Website may not be available for offer to retail investors.
This Website has not been reviewed by the SFC. © 2024 AXA Investment Managers. All rights reserved.