COVID-19: Investors find new ways to drive positive social outcomes
- 11 December 2020 (5 min read)
Key points
- The COVID-19 pandemic has put corporate ESG practices in the spotlight. Fresh attention has fallen on social issues such as public health, human capital management and societal inequalities
- This has led more stakeholders to ask how investments can be made with positive social outcomes and impacts
- In this paper, we look at the various approaches AXA IM has adopted to help our clients achieve these objectives
- We believe investors can drive positive social outcomes through investment in different asset classes and can deliver impact through engagement and voting
The COVID-19 pandemic has become a test of companies’ sustainability credentials. It has served to sharpen public and investor scrutiny of environmental, social and governance (ESG) practices and we have observed that this has particularly involved a more intense focus on the ‘social’ component.
It should be no great surprise. The social pillar in ESG includes a wide range of issues that came to the fore as the effects of the virus and accompanying lockdown measures took hold. The pandemic has exposed concerns about employee treatment, supply chain management, gender inequality, ethnic diversity, global health, education, data privacy and more.
In this context, we have seen a spike in stakeholder interest about investments that can drive positive social outcomes. This has been with a view to the short term objective of improving the situation related to the public health emergency as well as the long-term objective of helping develop a more pandemic-resilient society. This also feeds into the wider desire to make decisive progress towards the United Nations Sustainable Development Goals1 .
In this paper, we will highlight a series of approaches adopted by AXA IM and address some of the challenges and opportunities presented.
- aHR0cHM6Ly9zZGdzLnVuLm9yZy9nb2Fscw==
Not for Retail distribution
This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.
This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date.
All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document. Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.
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.